What if you don't need to be a millionaire?

[loop101]

What if you don't need to be a millionaire, and could do just fine with 4-6 income streams of $20k/year each? Would that change how you approached business? Would it make things easier, or would it essentially be the same amount of work?

For example, maybe you would be more willing to target smaller niches/audiences, knowing that you weren't swinging for the fences.

 

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[luniac]

wat was the question again?

 

[ExaltedLife]

Is this going somewhere?

Wait, I have it. What if you spent your time creating value instead of pointless threads?

 

[GuestUser450]

What if you don't need to be a millionaire, and could do just fine with 4-6 income streams of $20k/year each...

"Million" is functionally arbitrary, since everyone's freedom number is unique. But million/millionaire are sticky terms that people easily relate to wealth/f.u. money. So it's not a literal barrier to anything, only an accepted way to describe the scale we discuss.

Re: income - Most are less worried about the income we take while building the business than we are about the income generated from the interest on the principal, which comes from the sale of a fastlane business.

You calculate what you need for your lifestyle. Maybe it's 20K/month, maybe it's 200K. Then you work backwards from that number to understand the magnitude you'll need to build an asset whose sale could facilitate that number from a reasonable, conservative portfolio of investments.

 

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[jon.a]

You don't need to be a millionaire. You just need to make more than you spend.

 

[GMSI7D]

What if you don't need to be a millionaire, and could do just fine with 4-6 income streams of $20k/year each? Would that change how you approached business? Would it make things easier, or would it essentially be the same amount of work?

For example, maybe you would be more willing to target smaller niches/audiences, knowing that you weren't swinging for the fences.

money = freedom, choice, good life , power and status.

a lot of people want status in society.

do you want to be helpless of powerful ?

do you want people to treat you like a piece of shit ( hit the road , you dork ) or to bow before you ( welcome sir ) ?

i want power. at least in order to have choices in life

if you don't like this kind of picture, then you are probably on the wrong forum

 

[MJ DeMarco]

The last podcast interview I did I mentioned that my personal expenses were somewhere around $1,400/mo. Mind you, I live in a big house (no mortgage) and have no debt, no car payments, nothing other than a credit card which I pay in full every month.

$1,400/mo is $16,800 a year -- which is a poverty type income. It's also 5% on $336,000 -- not certainly a million.

Food for thought...

 

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[ExaltedLife]

if you don't like this kind of picture, then you are probably on the wrong forum

Why the hell would somebody want to hike all the way along the Great Wall of China in order to sit in a chair, drink champagne and listen to an orchestra when a much better experience could be had in a private concert hall with specialized acoustics and a much better menu selection (as nobody is building a fully staffed kitchen on top of the Great Wall)? So much wasted time and effort in that picture.

 

[loop101]

money = freedom, choice, good life , power and status.

a lot of people want status in society.

do you want to be helpless of powerful ?

do you want people to treat you like a piece of shit ( hit the road , you dork ) or to bow before you ( welcome sir ) ?

i want power. at least in order to have choices in life

if you don't like this kind of picture, then you are probably on the wrong forum


View attachment 15021

I have never seen so much White Privilege in one photograph. Sign me up!

 

[mike24601]

Right now I don't really know my exact freedom number. I'm a pretty thrifty guy--and I derive a lot of satisfaction out of making my dollar travel as far as possible, so that number could be quite low without a mortgage to pay and low expenses. I really just want to escape the life of being chained to a job and having a boss telling me what to do or some customer treating me like scum. We all should realize by now that the size of our house, make of our car, or brand of watch on our wrist is not concomitant with our level of personal freedom--that all will depend on what you value in life and how well you manage money, so maybe a million is really overkill for a lot of people. Maybe it's just right. I know that if I just started a mediocre passive/low input business that earned me $2,000 a month, my life situation would be tremendously improved. Not retirement money by any means, but damn, that would double my current income. Here's the problem: When I think of business ideas, I'm not thinking of how much or little I can make, I'm thinking of how many needs I can fill or how I can affect people with magnitude--the money will follow and the chips will fall where they may.

 

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[GuestUser450]

Why the hell would somebody want to hike...

The experience. The memory. The joy of making someone else's wish come true. "Because he can". - @Vigilante

 

[loop101]

Right now I don't really know my exact freedom number. I'm a pretty thrifty guy--and I derive a lot of satisfaction out of making my dollar travel as far as possible, so that number could be quite low without a mortgage to pay and low expenses. I really just want to escape the life of being chained to a job and having a boss telling me what to do or some customer treating me like scum. We all should realize by now that the size of our house, make of our car, or brand of watch on our wrist is not concomitant with our level of personal freedom--that all will depend on what you value in life and how well you manage money, so maybe a million is really overkill for a lot of people. Maybe it's just right. I know that if I just started a mediocre passive/low input business that earned me $2,000 a month, my life situation would be tremendously improved. Not retirement money by any means, but damn, that would double my current income. Here's the problem: When I think of business ideas, I'm not thinking of how much or little I can make, I'm thinking of how many needs I can fill or how I can affect people with magnitude--the money will follow and the chips will fall where they may.

I'm thinking the same way as you.

 

[loop101]

Why the hell would somebody want to hike all the way along the Great Wall of China in order to sit in a chair, drink champagne and listen to an orchestra when a much better experience could be had in a private concert hall with specialized acoustics and a much better menu selection (as nobody is building a fully staffed kitchen on top of the Great Wall)? So much wasted time and effort in that picture.

You should be more like Ross Perot. He's a billionaire, and a nice guy.

 

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[ExaltedLife]

The experience. The memory. The joy of making someone else's wish come true. "Because he can". - @Vigilante

Yeah I get that part. I go cliff diving every summer. I was mostly making a joke about the picture itself. I personally think the picture is dumb, but I love money, I love luxury, and I love this forum.

 

[ExaltedLife]

You should be more like Ross Perot. He's a billionaire, and a nice guy.

Wow, thank you so much.

 

[Nily]

You don't.

Despite the spiralling cost of rent in Sydney, I calculated that I only need $500,000 to generate $25,000/yr (5% interest) to get off the employment grid.

I can get a decent 1 bedroom apartment for $400/w rent around Western Sydney - which cost $20,800/yr. And I still have $4,200/yr to pay for food and a basic insurance policy.

It's similar to your $20,000/yr approach. But my money system would be more passive in comparison to you managing 4-6 niche businesses.

Do what suits you though.

 

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[GuestUser450]

Yeah I get that part. I go cliff diving every summer. I was mostly making a joke about the picture itself. I personally think the picture is dumb, but I love money, I love luxury, and I love this forum.

I was trying to write an ad for De Beers.

 

[ExaltedLife]

I was trying to write an ad for De Beers.

Lol that actually made me laugh a lot

 

[loop101]

You don't.

Despite the spiralling cost of rent in Sydney, I calculated that I only need $500,000 to generate $25,000/yr (5% interest) to get off the employment grid.

I can get a decent 1 bedroom apartment for $400/w rent around Western Sydney - which cost $20,800/yr. And I still have $4,200/yr to pay for food and a basic insurance policy.

It's similar to your $20,000/yr approach. But my money system would be more passive in comparison to you managing 4-6 niche businesses.

Do what suits you though.

I was thinking about each niche doing $20k per year, so with all 6 cylinders firing, it would be $120k per year. If one failed, or several, it would not be the end of the world. It is implied these businesses would be functionally passive. For example, a few niche mobile apps might make the $20k a year, and only need minimal maintenance.

There were two things that interested me about this approach, the first being it was resilient to failures, and the second was making $20k a year might be more approachable for people than making "millions". If you wanted a large payday, selling the assets would also be an option.

My question for this forum was basically, if your goal was to iterate creating $20k/yr businesses, how would that affect your approach? For example, if you were aiming "low", then the barrier of Entry rule might not be so important. I've read a number of times that the low barrier to entry for mobile apps has caused the prices to be suppressed, and that the average indie developer now made less than the poverty level. Yet, if that was only one of several niche businesses, it would be enough.

Anyway, it is just something I was thinking about.

 

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[sparechange]

I'm in vancouver, $1m is literally pocket change around here, a nice house goes for 5 to 10 mill, (starting point) and my ideal lifestyle ( my personal dreams ) 1m is not even enough to fill my dream garage, but even if you are a different type of person than me and have other lifestyle dreams, 1m in your 20"s or 30"a is chump change in any big city

 

[V8Bill]

Great thread Loopster.

The last podcast interview I did I mentioned that my personal expenses were somewhere around $1,400/mo. Mind you, I live in a big house (no mortgage) and have no debt, no car payments, nothing other than a credit card which I pay in full every month.

$1,400/mo is $16,800 a year -- which is a poverty type income. It's also 5% on $336,000 -- not certainly a million.

Food for thought...

This is so cool. @MJ DeMarco - is there a list of the podcasts you've been on anywhere? I'd love to listen to them.

I'm in vancouver, $1m is literally pocket change around here, a nice house goes for 5 to 10 mill, (starting point) and my ideal lifestyle ( my personal dreams ) 1m is not even enough to fill my dream garage, but even if you are a different type of person than me and have other lifestyle dreams, 1m in your 20"s or 30"a is chump change in any big city

I can't imagine a place on this earth where a million dollars is literally pocket change. $5m-$10m for just a nice house? They'd want to at least have solid gold door knobs and a platinum letterbox - literally. That seems extraordinarily expensive. Anyone who's in their 20s or 30s and thinks one million dollars is chump change needs a Bex and a good lie down. I'd love to interview that 20-30 year old and hear what they're really thinking.

Edit added:
Sure enough...

Amazing. I stand corrected on the cost of Vancouver real estate.

 

[MidwestLandlord]

I was thinking about each niche doing $20k per year, so with all 6 cylinders firing, it would be $120k per year. If one failed, or several, it would not be the end of the world. It is implied these businesses would be functionally passive. For example, a few niche mobile apps might make the $20k a year, and only need minimal maintenance.

There were two things that interested me about this approach, the first being it was resilient to failures, and the second was making $20k a year might be more approachable for people than making "millions". If you wanted a large payday, selling the assets would also be an option.

My question for this forum was basically, if your goal was to iterate creating $20k/yr businesses, how would that affect your approach? For example, if you were aiming "low", then the barrier of Entry rule might not be so important. I've read a number of times that the low barrier to entry for mobile apps has caused the prices to be suppressed, and that the average indie developer now made less than the poverty level. Yet, if that was only one of several niche businesses, it would be enough.

Anyway, it is just something I was thinking about.

Honestly? This is mental masturbation.

You're trying to get past barrier of entry, by creating several small passive businesses, to make it easier on yourself. Chasing money. Chasing pennies.

"Passive" is largely a myth.

Low barrier to entry means anyone can knock you out fast, and that makes it far from passive having to fight them off...no?

Plus, it feels like you're saying "building a $20k business is easy" , which due to fighting low barrier of entry is not really true. (To an extent it is, but they die fast)

Business polygamy doesn't work. Ask me how I know.

Common advice is "multiple streams of income" but it's bullshit.

Later, when you need asset protection, cash flow from idle cash, and have the time and experience to diversify, then go for it.

Until then, do one thing and do it well.

Start something that is scalable. Get *IT* to $20,000 a year. Then repeat what you did to get it to $40,000, etc.

Don't shoot for millions. Shoot for ONE SALE with something that is CAPABLE of millions.

Accept that it's hard, because it is.

 

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[Choate]

I was thinking about each niche doing $20k per year, so with all 6 cylinders firing, it would be $120k per year. If one failed, or several, it would not be the end of the world. It is implied these businesses would be functionally passive. For example, a few niche mobile apps might make the $20k a year, and only need minimal maintenance.

There were two things that interested me about this approach, the first being it was resilient to failures, and the second was making $20k a year might be more approachable for people than making "millions". If you wanted a large payday, selling the assets would also be an option.

My question for this forum was basically, if your goal was to iterate creating $20k/yr businesses, how would that affect your approach? For example, if you were aiming "low", then the barrier of Entry rule might not be so important. I've read a number of times that the low barrier to entry for mobile apps has caused the prices to be suppressed, and that the average indie developer now made less than the poverty level. Yet, if that was only one of several niche businesses, it would be enough.

Anyway, it is just something I was thinking about.

What is wrong with this equation?

a) Lack of value
b) Ignoring the barrier to entry while not providing Executional Excellence (Unscripted )
c) Purposefully entering crowded markets while assuming you can scrape 20k of profits off the bottom, 6 times
d) Assuming that the same principals that apply to business that make millions per year do not apply to multiple businesses making 20k each per year
e) All of the above

 

[GlobalWealth]

money = freedom, choice, good life , power and status.



if you don't like this kind of picture, then you are probably on the wrong forum


View attachment 15021

I don't really like this picture. Am I on the wrong forum?



Sent from my VTR-L29 using Tapatalk

 

[fastbo]

This hits home. The point of being 'wealthy' is to have income > expenses permanently.
MJ has reduced his expenses to $1400/mo, so he could be one of the few who could actually retire nicely on Social Security income.

If you're making $80-100k a year off multiple streams - there are plenty of people making that much who are living 6 months from homeless. It's not just about X income or X millions.

The point is to make enough to buy what you need to have both the assets and continual income you need. If you're happy with a $150k home, debt free, 2 older paid off cars, and $2k a month passive income with less than that expenses, you could be living the fastlane much faster than if you needed a $1m home and $5k/mo passive income.

What is a million, or 5 million dollars, except the means to acquire the assets you need and rent your money to create passive income to meet monthly obligations?

The last podcast interview I did I mentioned that my personal expenses were somewhere around $1,400/mo. Mind you, I live in a big house (no mortgage) and have no debt, no car payments, nothing other than a credit card which I pay in full every month.

$1,400/mo is $16,800 a year -- which is a poverty type income. It's also 5% on $336,000 -- not certainly a million.

Food for thought...

 

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[The-J]

There's a GOLD thread by @Eskil that does this math for you. It's a spreadsheet that calculates:

1) how much money your dream lifestyle costs

2) how much money you need to have to sustain it on money system income alone

3) how much money your business has to make to sell for that amount of money

4) what kind of multiplier your business has to sell for in order to make that

Mental masturbation over. It's done for you. Takes like 3 minutes, and now you have a goal for LITERALLY EVERYTHING income-related.

So knowing this, your thread is useless.

 

[MJ DeMarco]

MJ has reduced his expenses to $1400/mo

But here's the thing, I don't feel I have reduced anything. It's just the way things are right now. I know that # will grow as I've been looking to buy a new home and a few other things. Just kinda in limbo right now personally, and that's just happens to be the # in limbo.

 

[bitcoins]

The first and foremost thing anyone should think about is how to get their bills paid and all the pesky little problems in their life removed. Don't like ironing your clothes, washing them, wasting time? Outsource the work. Don't like cooking? Pay for delivery or go dine out. Don't like wasting energy and precious hours on uploading content due to your slow connection? Upgrade it to the best in the country, or move somewhere where there's faster connection (I switched countries for a few main reasons. I essentially moved out of the U.S. to go to a place that's 4x cheaper, has 10x faster Wifi for 1/6th of the price I paid back home, has a lot of beautiful women and lastly I guess free healthcare is cool too).

Once you're able to live in relative luxury and your mind's not cluttered with absolute trash, that's when you can focus on the real work and make the good money. Everybody has different forces driving them, but regardless of their motives and intentions eventually I think the competition one naturally feels against their past self will come up and it'll feel like a fire's lit under your rear. You'll want to keep pushing yourself for further success.

 

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[GlobalWealth]

The first and foremost thing anyone should think about is how to get their bills paid and all the pesky little problems in their life removed. Don't like ironing your clothes, washing them, wasting time? Outsource the work. Don't like cooking? Pay for delivery or go dine out. Don't like wasting energy and precious hours on uploading content due to your slow connection? Upgrade it to the best in the country, or move somewhere where there's faster connection (I switched countries for a few main reasons. I essentially moved out of the U.S. to go to a place that's 4x cheaper, has 10x faster Wifi for 1/6th of the price I paid back home, has a lot of beautiful women and lastly I guess free healthcare is cool too).

Once you're able to live in relative luxury and your mind's not cluttered with absolute trash, that's when you can focus on the real work and make the good money. Everybody has different forces driving them, but regardless of their motives and intentions eventually I think the competition one naturally feels against their past self will come up and it'll feel like a fire's lit under your rear. You'll want to keep pushing yourself for further success.

Just curious. Where did you move to?

Sent from my VTR-L29 using Tapatalk

 

[Lafandriel]

it would be the same amount of work because at first you have to ... well ... work for it to make it happen. When you are at your exit point depending on the monthly money you need you can take it a little bit easier but unless you have sold your corporation there will still be work to do because no work => no money ... so what steps did you take to start the first of your 20 or so corporations?