How to Replace Your Income

Saving is a large part of the discipline we've learned and grown up with. We were taught to be prudent, not overspend, and save our money for a rainy day. The extra disciplined and future-thinking individuals are those who also set aside funds for a retirement “someday.”

Investing is often an afterthought. Delegated to a financial advisor, or put on autopilot through mutual funds, etc.  

Often, “retirement savings” and “investments” are described interchangeably. But saving is not the same thing as investing. 

Investing is the best option and should be the focus from the very beginning. Most people wait too long before learning about this.

Of course, you must keep some margins and liquidity, such as cash or cash equivalents. But putting money to work for us as soon as possible should be the goal. This is how to create “replacement income” – the income that will replace your active income.

Living off of savings can only last so long. 

Living off of investment income is a better goal.

The Transition From Saving to Investing

I've observed a transition period in my life and in many others who take their active income and not only save it, but then invest it wisely. This transition period requires an investment of time, energy, education, and experience. Like going to dental school, it requires the acquisition of certain skill sets and competencies. This takes time. Of course, the transition period can be accelerated, depending on who you learn from and whether you have access to the right education. 

The goal remains the same throughout. You want to advance to a point where your investment assets produce predictable, sustainable income that replaces your active income. 

This does not happen all at once. You must create milestones that advance you closer and closer to your goal. Over time, as you surpass milestone after milestone, and when you're ready to take time off, transition out of, or sell your business, perhaps even “retire,” you now have the option to do so.

The Life You Want and the Key to Access It

Being able to create predictable, sustainable cash flow that is not dependent on trading time for dollars is the key to the life you truly want. That's what set me free when I needed to leave my practice over 20 years ago when my daughter was very ill. I had enough to set me free, not for a lifetime, but enough to take time off to spend time with my daughter.

Today, I have enough assets which produce income that allows me to focus on things I love to do. The Freedom Founders community is one such thing.

What do you want to do in your life? What dreams do you have that you have yet to see come to fruition? What's holding you back?

One piece of that puzzle is learning how to make your money work for you.

You may be a good saver or able to accumulate a large pile of money. But what will it take to make those savings work for you and begin replacing your income to provide more freedom?

I just released a new book titled How Much Is Enough that speaks to this very dilemma.

How much is enough to create and sustain the replacement income that you need? My new book breaks this down in detail.

Most need far less than they think, if they are able to orchestrate sustainable, predictable cash flow from savings. 

You can get your copy for free at HowMuchIsEnoughBook.com. Read the book, use it to clarify your financial goals, and create a roadmap to begin making your money work for you.