The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

What´s a smart investment strategy having a job?

Accelerate wealth. Build a business that pays freedom. Join more than 70,000 entrepreneurs and register for the Fastlane Entrepreneur forum. Remove ads? Join the INSIDERS.

Mainstream7

Beauty is Truth
Speedway Pass
Jan 1, 2015
487
585
259
31
So let´s say you save $1k/month from a dayjob after rent and bills.
A common strategy I see is having a mortgage on a house and then using money from a business system to pay it off. Is this a smart way to do it? Since you are leveraging time on the rent and you also use explosive business income to eventually pay off your debt.
The great thing about it is you dont even have to "make it". Even if you don´t, the debt will still be paid off in 30 years time or so.
What other strategies are there?
How can you make most use of your time and income?

Especially asking @biophase and @MJ DeMarco. If you know anyone who has relevant experience feel free to tag.

Thoughts derived form this thread.
 

Johnny boy

Legendary Contributor
EPIC CONTRIBUTOR
Speedway Pass
May 9, 2017
1,358
6,397
1,477
24
Washington State
The smart thing to do is start a business that follows the CENTS principles and make 3 million dollars in 5 years, travel the world, buy a lambo in your favorite color, take up a few new hobbies and then reevaluate what else you want in life.

It's not average, though. Average is a chubby wife and a 45k a year job.

In all seriousness. Money is fungible, it doesn't matter if you have a side-biz and use "the money from that" to pay your mortgage. You shouldn't be training yourself to think "Stay the same for 30 years" either.

You should get the largest amount of income you can get immediately from working your a$$ off, and then use that money to build something that grows and scales in a slightly less immediate way but with a much larger cap (to actually get rich), and then use that money to invest more passively and enjoy your life. Job -> Business -> investments.

For example, I dropped out of college and started selling cars and lived at home. I started a lawn care business and now we are doubling each year. So at 22 I was making 6k a month living at home my first year, started my business and moved out and now make about 9k a month, and will be adding about 6k a month in profit for every new crew we have working. So this next spring will be about 15k a month, next year after that (2022) should be about 20-25k a month profit, etc.
 
Last edited:

Envision

Legendary Contributor
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 5, 2014
822
5,328
1,285
27
I think if you know how to utilize money there are better ways to spend it than paying cheap debt off.

Get a house and some roommates so they pay your debt
Use points to pay your living expenses
Maximize your savings by limiting wasteless spending
Launch a business with your w2 income.
 

MJ DeMarco

Administrator
Staff member
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Jul 23, 2007
32,469
123,554
3,751
Fountain Hills, AZ
A business is the only thing that can create asymmetrical returns. The SPY might yield 6% next year, but a business that follows CENTS could return 6000%.

Like I did years ago, I'd be saving money to invest -- not in stocks, but in my own business. Then, I'd attack the debts once I start hitting the asymmetric returns with my business, which is exactly what I did years ago.

I nickle-and-dimed my student loan debt for years.

Once I hit asymmetric returns with my biz, I paid it off in a matter of months with big pay-down checks.
 

Mainstream7

Beauty is Truth
Speedway Pass
Jan 1, 2015
487
585
259
31
The smart thing to do is start a business that follows the CENTS principles and make 3 million dollars in 5 years, travel the world, buy a lambo in your favorite color, take up a few new hobbies and then reevaluate what else you want in life.

It's not average, though. Average is a chubby wife and a 45k a year job.

In all seriousness. Money is fungible, it doesn't matter if you have a side-biz and use "the money from that" to pay your mortgage. You shouldn't be training yourself to think "Stay the same for 30 years" either.

You should get the largest amount of income you can get immediately from working your a$$ off, and then use that money to build something that grows and scales in a slightly less immediate way but with a much larger cap (to actually get rich), and then use that money to invest more passively and enjoy your life. Job -> Business -> investments.

For example, I dropped out of college and started selling cars and lived at home. I started a lawn care business and now we are doubling each year. So at 22 I was making 6k a month living at home my first year, started my business and moved out and now make about 9k a month, and will be adding about 6k a month in profit for every new crew we have working. So this next spring will be about 15k a month, next year after that (2022) should be about 20-25k a month profit, etc.

Nice! Yeah, I´m definitely going to stay the same for 30 years and be comfortable. It´s alway ongoing process. Excited for what is coming. Congrats on your venture!

A business is the only thing that can create asymmetrical returns. The SPY might yield 6% next year, but a business that follows CENTS could return 6000%.

Like I did years ago, I'd be saving money to invest -- not in stocks, but in my own business. Then, I'd attack the debts once I start hitting the asymmetric returns with my business, which is exactly what I did years ago.

I nickle-and-dimed my student loan debt for years.

Once I hit asymmetric returns with my biz, I paid it off in a matter of months with big pay-down checks.

That´s the plan! I still have student loans, however they don´t have any interest.
It seems taking a mortgage is still a standard practice for fastlaners? Since it´s replacing rent, it doesn´t matter anyway. I would still save money to leverage for a business.
It´s probably just the timing at which it makes sense to pay off the debt? I hear that putting business profits back into the business is probably better.....maybe eventually putting 10% of business profits to pay off debt makes sense.


I think if you know how to utilize money there are better ways to spend it than paying cheap debt off.

Get a house and some roommates so they pay your debt
Use points to pay your living expenses
Maximize your savings by limiting wasteless spending
Launch a business with your w2 income.

What kind of points are you referring to? Yeah, probably should look at house hacking. Thank you!
 

MJ DeMarco

Administrator
Staff member
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Jul 23, 2007
32,469
123,554
3,751
Fountain Hills, AZ
It seems taking a mortgage is still a standard practice for fastlaners?

Really depends. Money is so cheap now it almost makes sense to take a mortgage.
 

thechosen1

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Aug 25, 2020
1,480
2,755
648
Galt’s Gulch
Really depends. Money is so cheap now it almost makes sense to take a mortgage.
I have a theory about this, I was going to post it in the inflation thread but here seems relevant since you said this...

But besides lowering interest rates to increase inflation, I believe lower rates are used to make sure as many people are enticed to take out mortgages as possible.

That way, more people have debt that can only be repaid in US dollars.

The more people with USD denominated debt, the stronger the currency...because they are guaranteed to “need” US dollars to repay the debt! There is demand for the dollar built into the personal debt equation.

So are individual debt holders the real value behind the US dollar?
 

socaldude

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Jan 10, 2012
1,810
4,151
1,016
San Diego, CA
You invest your money where there exists an inefficiency the most.

So I’m guessing if you are starting out it’s usually your mind. So you wanna allocate resources to where they are needed the most.

Once you invest in yourself you’ll be able to spot more inefficiencies out there in our economy. Because business solutions to economic inefficiencies are exclusionary in nature you can make insane returns on your money as MJ stated. You’ll do a lot better than buying index funds or bonds IMO.
 

Tom H.

Bronze Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Dec 13, 2019
239
477
223
Jaco, Costa Rica
Really depends. Money is so cheap now it almost makes sense to take a mortgage.
And over decades you have a pretty good chance of paying it of with cheaper and cheaper dollars.

Like if you bought a house in the early 70s, the dollar then got much cheaper over ten years, you have a house in 70s dollars that you're paying for with 80s dollars.
 

awsamro

New Contributor
May 28, 2019
22
18
14
Really depends. Money is so cheap now it almost makes sense to take a mortgage.
I have a theory about this, I was going to post it in the inflation thread but here seems relevant since you said this...

But besides lowering interest rates to increase inflation, I believe lower rates are used to make sure as many people are enticed to take out mortgages as possible.

That way, more people have debt that can only be repaid in US dollars.

The more people with USD denominated debt, the stronger the currency...because they are guaranteed to “need” US dollars to repay the debt! There is demand for the dollar built into the personal debt equation.

So are individual debt holders the real value behind s
Really depends. Money is so cheap now it almost makes sense to take a mortgage.
Im a mortgage broker in Canada. I’ve resisted buying
So let´s say you save $1k/month from a dayjob after rent and bills.
A common strategy I see is having a mortgage on a house and then using money from a business system to pay it off. Is this a smart way to do it? Since you are leveraging time on the rent and you also use explosive business income to eventually pay off your debt.
The great thing about it is you dont even have to "make it". Even if you don´t, the debt will still be paid off in 30 years time or so.
What other strategies are there?
How can you make most use of your time and income?

Especially asking @biophase and @MJ DeMarco. If you know anyone who has relevant experience feel free to tag.

Thoughts derived form this thread.

So let´s say you save $1k/month from a dayjob after rent and bills.
A common strategy I see is having a mortgage on a house and then using money from a business system to pay it off. Is this a smart way to do it? Since you are leveraging time on the rent and you also use explosive business income to eventually pay off your debt.
The great thing about it is you dont even have to "make it". Even if you don´t, the debt will still be paid off in 30 years time or so.
What other strategies are there?
How can you make most use of your time and income?

Especially asking @biophase and @MJ DeMarco. If you know anyone who has relevant experience feel free to tag.

Thoughts derived form this thread.
Here is what I did:
I work in sales as a mortgage broker in Canada. I make good money but not fast lane income by any means ($350,000 this year and my wife makes $120,000). I wanted to stay lean with no debt obligation so that I can do something with fastlane potential on the side. My wife wanted to buy a house. We ended up buying a house lol. However; we bought outside the city and we bought a house that is way less expensive than what we qualify for. We bought 25% of what the banks are willing to lend us. That way our mortgage payment is still very low (lower than what it costs us to rent). I do not think that putting a strain on your cashflow is wise if you have fast lane aspirations. However; buying something affordable is a good idea now because of the extremely low rates. Always keep an eye on the cashflow and do not buy a mansion so that you are not locked into your job.
With surplus money, I follow the advice I read in a book called “The Lazy Investor.” I basically buy stocks bi-weekly with every paycheque in the bank I work at. Its a big bank paying regular dividends. Not the crazy 10,000% return but a good hedge against inflation and against f*cking up . If I do not succeed fastlaning I won’t be 80 and totally broke. Its my safety net plan worst case scenario kind of thing. I also started putting money into the bitcoin fund. A little bit every paycheque for the long term. The rest of the money Is in cash waiting for my 2021 project ... stay tuned :p
 

thechosen1

Platinum Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Aug 25, 2020
1,480
2,755
648
Galt’s Gulch
Im a mortgage broker in Canada. I’ve resisted buying

Here is what I did:
I work in sales as a mortgage broker in Canada. I make good money but not fast lane income by any means ($350,000 this year and my wife makes $120,000). I wanted to stay lean with no debt obligation so that I can do something with fastlane potential on the side. My wife wanted to buy a house. We ended up buying a house lol. However; we bought outside the city and we bought a house that is way less expensive than what we qualify for. We bought 25% of what the banks are willing to lend us. That way our mortgage payment is still very low (lower than what it costs us to rent). I do not think that putting a strain on your cashflow is wise if you have fast lane aspirations. However; buying something affordable is a good idea now because of the extremely low rates. Always keep an eye on the cashflow and do not buy a mansion so that you are not locked into your job.
With surplus money, I follow the advice I read in a book called “The Lazy Investor.” I basically buy stocks bi-weekly with every paycheque in the bank I work at. Its a big bank paying regular dividends. Not the crazy 10,000% return but a good hedge against inflation and against f*cking up . If I do not succeed fastlaning I won’t be 80 and totally broke. Its my safety net plan worst case scenario kind of thing. I also started putting money into the bitcoin fund. A little bit every paycheque for the long term. The rest of the money Is in cash waiting for my 2021 project ... stay tuned :p
Combined, you and your wife are well into the 1%, so congrats :)

$350k is more than most members of this forum earn individually, too.
You’re doing great!
 

Sponsored Offers

MARKETPLACE Fox Web School "Legend" Group Coaching Program 2021
Hi - I sent out some emails with the updates but I'll PM you now also, thanks. The issue is...
  • Sticky
MARKETPLACE NEW: The Best School for Going Fastlane (Now open for summer enrollment)
Read the free book, some excellent insights. I also did the website quiz and I did a visual on a...
MARKETPLACE Not sure how to start? This free book will teach you how to build a successful web design business
Hi Fox. Starting the book and got through the introduction. Had a conversation with Andy Black...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Chris is super sharp and is aware of many facets of entrepreneurship and can help get your...
Introducing MJ's Personal Unscripted Network, Join Now for FREE!
Any chance to make it available outside of US? It has been available outside of the US on...

Forum Sponsor

Learn Fastlane Business Skills & Get Profitable Within 30 Days...

Get Started Now

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom