Accelerating future benefits…and the other number 7
The 8th Wonder
Being smart with money now (I’ll avoid the B-word) and planing ahead will provide a decent nest egg later. Just the simple law of compound interest (supposedly called the “Eighth Wonder of the World” by Einstein) means your money will (or should) grow over time. And many people are rightly content with this tortoise approach to building wealth (or at least financial flexibility). But as I stated in my “Coming Out” post, I want to accelerate future benefits; I want to pull money from the future and enjoy its benefits sooner rather than later.
But I want it now
I will get into my philosophy on investing later but, in short, investing in income stocks is one of the safest ways to invest AND achieve, with a high degree of certainty, a good return. But I don’t want to be the dude that dies at 90 with $6 million in the bank but is eating dog food to be thrifty (fine line between thrifty and miserly). If my goal is to build wealth NOW so that my family has the majority of my lifetime to enjoy its benefits, so that I create multi-generational wealth (and not have the last check I write bounce) and so that I have a lifetime to be a blessing to others, I need a means to drag those future, nearly guaranteed, benefits into today…or at least to the near future- before the nursing home eats it all up. And the only way to do that is to aggressively work for that goal now. As Pat Flynn states in his podcast every week, this is about “Working hard now so you can sit back and reap the benefits later”…but not too much later.
The other number 7
So, in addition to seven streams of income, 7Streams also refers to the seven-year goal I’ve set. In about seven years I’ll be eligible for a military pension (assuming I last that long…or they keep me around). That pension, which works out to around 30% of the total benefits one receives while actively employed, will offer a fair degree of flexibility and freedom in making the next career choice. Of course, if that were my only plan I would still have to work somewhere but having that cushion offers a good security blanket for the rest of my (or my wife’s) life. But I have a much more ambitious plan: in seven years I want to achieve complete income replacement of my current salary through my entrepreneurial activities. Namely, the day I step out of uniform (or for you, the day you take off the corporate suit or punch the clock for the last time) I do not want my next stop to be the resume-writing workshop or an interview with a headhunter. I want be free to choose my family’s next adventure, expand our entrepreneurial endeavors (not start from scratch), decide to which of our rental properties we will move, move to some foreign land and live like a king…or start to give it away.
So, 7 streams of income in 7 years for complete income replacement. Now you know the whole plan…I’ll let you know what happens…so stay tuned…or heckle me below.