If you have some savings, and you'd like to quit your job to work for yourself, here's a few ways you can make your savings work for you: 👇
Say you're willing to risk $200K of savings, and your expenses are $5K/month, and you're starting with $0 income, then all you need to find is $80 of net new income per month.
You'd breakeven after 5 years, and your savings would never dip below 10 months of expenses.
Adding $80 of linear growth per month is certainly not easy. But doable. For example, if you sell a SaaS for $39/mo, you just need to add 2 net new customers per month. (Assuming zero operational costs.) That's it. No hockey sticks necessary.
If instead you can only risk $100K, and your expenses are $5K/mo, then you need to be a bit more aggressive and find at least $160 of new income per month. You would breakeven sooner though, after only 2.5 years, and you'd still have 5 months worth of savings as buffer.
And of course, if your expenses are higher, you need more savings. Here's what risking $300K looks like, with $7.5K/mo expenses and $125/mo linear income growth.
Breakeven at 5 years, with 10 months of savings as buffer.
If you want to risk a lot less, then you need to be more aggressive with the income target.
Say your expenses are $7.5K/mo and you're only ready to risk $90K — 1 year worth of expenses.
Then you need to target $400/mo linear growth to breakeven with w/$23K in the bank in <2yrs.
If you want to try this with your own numbers, you can download the spreadsheet here: github.com/dvassallo/boot…. This tool gave me the final bit of confidence I needed to realize that I had saved enough to take the plunge.
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And this won’t just protect you against a bank run, but against anything that might happen to your primary account.
When I was moving to the US from Ireland 13yrs ago, my IE bank had a “technical issue” and froze everyone’s accounts for almost a month.
But I had redundancy.
Here’s the story for those curious. A bad deployment required manual reconciliation of millions of accounts, which left at least 600,000 people without access to their money for 28 days.
This fellow @chrismanfrank believes he’s changing the educational panorama, and yet acts like a petulant 5yr old himself. On a conversation about… kids! 😂
We were mutual followers; judge for yourself:
Twitter shows who people really are sometimes
Is this with whom you would want to trust your kids? @synthesischool 😬
I'm not a fan of FIRE, mainly because of its distinct bimodal approach towards life: the deferring phase, and then the living phase.
First of all, I believe that the discovery of our true preferences is a life-long exercise, and the most reliable way to reveal our preferences is to live them.
Everyone I know who retired after a grueling career went into retirement unprepared, and their life went downhill fast. The "Always Be Compounding" attitude during the deferring phase gets in the way of exercising the muscle that leads to discovering what we truly like & dislike.
Mineral wool turned out to be a lot more annoying to work with than fiberglass, but it is supposedly better for sound absorption and that’s my main concern.
Why you probably should discount your prices for Black Friday:
Last year, my digital products sold over $28,000 during the Black Friday period.
This month, I'm already over $30,000, and the peak is yet to come.
Here's everything I learned about Black Friday and discounts in general:
When selling digital products with no real marginal costs, pricing is almost all about human psychology. You can charge what you think people are willing to pay for.