fbpx

Wake up! Live like a kept man!

Maybe the title is a little strong but at least I brought your focus to this article.
I actually believe that it is indeed possible to live as retainers. The correct term is“living off the land.” Okay, now maybe you will give me more attention.

What does it mean to live off the land and why is this concept often misunderstood?

By living off your income, I mean receiving income in an automatic way that allows you to live your life in a decent way without getting off the couch. And here come the guru phrases again. But let’s dispel the myths and see what is most true and most false: automatic annuities from network marketing: FALSE; annuities from automatic trading? FALSE; Automatic returns from memberships? FALSE.

IF YOU WANT TO MAKE A LIVING YOU HAVE TO INVEST: TRUE.
IF YOU DON’T HAVE MONEY FORGET ABOUT LIVING OFF YOUR INCOME.

This is the hard truth. So how do we accumulate the money we need to be able to live off of if we don’t already have large amounts of capital? Simple: we plan our personal finance. We grow our savings in financial markets.

We invest in solid companies and existing businesses to receive their profits. In our personal finance track we explain how every person should get to a certain age without having to worry about money anymore. Now you must be thinking to yourself, “gee but I don’t have time and I don’t have enough money to invest.” WRONG! There is no such thing as too much or too little. Make your money work in the markets NOW. Start investing NOW. Even your pocket money or a paltry part of your salary but do it! Of course you have to do it in a studied way otherwise you are only going to erode your capital. Here we can still help you.

Investing one’s savings.

I have a friend who works as a clerk. He is 30 years old and spends 50 percent of his salary on useful expenses, the other 50 percent on leisure. At the end of the month he has 0 left. I asked him if he had ever thought of starting to save for the future. His response was, “I have a permanent contract, I don’t need to think about the future.” This friend of mine will find himself at age 60 with no savings.

His brother, on the other hand, works in the same building. Same salary and similar age. He sets aside 500 euros a month by investing it in the markets. With the right investments he can earn an average annual return of about 8 percent. In 25 years he will have about 300 thousand euros in his portfolio (calculation made taking inflation into account). Maybe throw in the severance pay and get 350,000 euros.

Returning capital to annuity.

By annuitizing this capital in the markets, buying funds or stocks that pay high dividends he will be able to “guarantee” an income of about 30 thousand euros annually in addition to his pension. He will have no problem sending his children to college, he can enjoy the world, travel. The spendthrift brother maybe to send his children to the best university will have to take on a second job. He will not travel and will sacrifice his life to work.

That is why it is important to have an automatic annuity. It means securing a better future not only for us, but also for our generations.

I know very young people who have inherited huge amounts of capital. These people could live off their income, be retainers for life. Instead they squander money left and right, After 5 years they run out of everything. They have to find very often menial work to get by.

We don’t want this to happen. Try to understand the importance of money in our lives. It is not true that money does not make happiness. This concept holds true in populations where money has never been seen. But in our society, money makes for happiness, or rather, helps us to be happier. Which then happy is not even the right word. The phrase“money makes SERENITY” would be more correct (always subordinate to health of course). Because Andrea, the friend in the earlier example, will not be serene at 60. He will have to get up and work to secure a future for his children. The brother, on the other hand, relaxes in the rented house in the Canary Islands. Here is the serenity.

Greetings. Matthew

Altri articoli che potrebbero interessarti

Contatti

Hai bisogno di aiuto?

Utilizza il modulo di contatto per inviarci subito una richiesta di supporto.
Rispondiamo entro 1 ora a tutte le richieste.

Inserisci la tua migliore email per accedere al gruppo Telegram, ti invieremo le nostre analisi gratuitamente ogni domenica