Tuesday, December 4, 2012

Talking the Talk

I feel that by nature teachers are like little entrepreneurs:  you have your own classroom, you create your own lessons, and you control your own little world, only instead of making money you make adults!  I was tired of making adults; it takes to long.  Therefore, in my final year of teaching I started expanding my reading to include authors like Robert Kiyosaki, Timothy Ferriss, Donald Trump and anybody they recommended.   These authors sell an idea, a lifestyle that honestly gave me the gumption to quit my job.   Once I joined their little cult way of thinking my friends and family surely thought I had jumped off the deep end, and I had. 

I didn't really know where I was going when I quit teaching.  I just had one realization-I needed to create my own paycheck.  Just like those fanatical books sell, I had an idea that I still hold onto today:  I can create a monthly cash flow that covers my expenses with minimal work on my part.  Here are my options to making this happen: rental property, dividend yielding investments, interest off of a lump sum of money, and a business.  

A business was instantly out of the picture seeing as I didn't know what to sell and that meant I had to do all the work with a high chance of failure, too similar to teaching.  I need to be able to step away from my investment and a business will take some time while my learning curve is always a little longer than normal people.  Living off the interest of a lump sum of money takes the longest amount of time.  Saving $10,000 a year is really what I've been able to do since teaching which means it will take me another 98 years to have a million dollars.  That amount of interest would give me enough to have about $50,000 a year to live on.  But by then with inflation and my age, that wouldn't work.  So that leaves two options: dividend yielding stocks and rental property.  I know which one seems less risky in this market-rental property.  So now the decision is made, it’s time to stop talking and start walking the walk.

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