It’s also ironic because, when I did have an income, I didn’t worry about it at all:
Back in 1998, I had two businesses that, between them, managed to earn exactly $0 …
… what one business made (about +$5k a month), the other one managed to lose (about -$5k a month).
But, I wasn’t at all worried.
That’s because this break even scenario already took into account the cost of my (then) still-quite-basic basic lifestyle.
– I could deduct the cost of my cars as a business expense, so my business paid for those
– I could deduct the cost of my travel as a business expense, so my business (or the occasional consulting client) paid for those
– And, I could afford to pay myself a fairly basic (at least, for a guy with a family) $50k salary a year
So, with my combined businesses breaking even (after these expenses were taken into account), together with the fact that I could control my cost of living by delaying gratification (not to mention, my wife was still working and bringing in a decent income), I simply didn’t worry too much about earning an income.
But, all that changed when I started investing actively, and built up my first $7 million (in 7 years) fortune …
It changed for the worse!
Firstly, my cost of living increased. A lot.
Then, my wife stopped working. Of course.
And, my actively-generated income stopped. Because I sold my biggest business.
Now, I mostly have to rely on ‘passive income’ which is really just spending the money I have in the bank while I figure out how to make more money from investments than I spend on their expenses + the cost of my lifestyle.
And, that’s now a big number!
So, ironically, just when most people think that I have “f**k you” money, I have started to worry about income …
… simply because I have to create my own.
How about you? Do you worry about income? Why (or, why not)?