How do I organize myself to be independent of salary?
Hello
How would you organize yourselves so that you don't have to depend on your salary?
(I have listed various starting budgets below)
I'm in my twenties and I want to be free. I don't want to spend my life working just to make a living. And I don't mean that because I'm lazy or anything. Quite the opposite.
I would love to work on my dreams and make them come true.
but of course you also have to be able to finance yourself.
I would like to be a filmmaker/director/writer, but my parents say I will starve.
I want to be free and not work like an animal (be it in film or any other industry) to make ends meet and provide for my family.
I want to make a plan and work smart so I'm not dependent on jobs. I'm organizing myself and working diligently on a system to achieve this freedom and be able to devote myself to my films, my books, and my family.
The question now is: what's the best way to do this? How do I proceed? What should I do?
Can you help me and tell me how you would do this with the following budgets:
€0 // €10,000 // €100,000 // €250,000 // €500,000
Thanks in advance.
(1 votes)
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Um das nötige Anfangsbudget zu erwirtschaften, musst Du eben nun erstmal arbeiten, ob beim Film oder sonst wo. Siehe User Rojalamo
I mean, assuming you had the initial budget.
What should I do or how should I proceed so that I don't have to constantly work like an animal because of money worries, fears, and insecurities, or have to give up on my dream?
If I can build something that alleviates my fears or finances a large part of my life, I can devote more freely to what's important to me in life. That's what I mean by passive income or whatever else there is.
But you'll have to. Option two is to find someone who will support you. Marrying rich usually only works if you're the pretty woman.
Unfortunately, you don't have enough money to be truly free unless you take high risks. €750,000 at a 3% withdrawal rate would be around €1,900… Before taxes, that means you should at least live somewhere with low taxes and affordable healthcare. Bahamas or something… But for that, you'd need to have the €750,000 first.
If you don't get it for free, you'll have to work for it first, for better or for worse.
The cost of living would have to be reduced to a low level.
Besides your job, you should do YouTube and slowly buy your equipment.
But managing your own money is also work… your whole life.
Most people dreamed of the land of milk and honey. But today it's relatively unknown.
Later it was Shangri-La. There aren't many there now either.
Be diligent and determined, dreams are constantly changing.
If you invest €500,000 safely, you get a return of 4%. That's €20,000 annually. Add the standard taxes of €3,600 to that, and you'll get €16,400 per year.
However, if you plan to use the capital over 60 years, you could withdraw €1,800 per month. But you'll have to pay taxes on some of that. Of course, you'll also need health insurance, and so on. But if you live very frugally, it'll work.
Although 4% is quite ambitious. The stock market has to cooperate, or you have to be prepared to drastically reduce your spending during crises. 2.5% to 3% would be safer.
Yeah, okay. But he probably doesn't have €100 in the bank. So it's just a thought experiment anyway. 😉
First of all, thank you for your answer. Would you approach the money this way, or would you start a business? Would you do something else? So that you don't have to live super frugally, but rather live a "normal" or perhaps even wealthy lifestyle? Above all, however, so that you can be free and devote yourself to what's important to you without having to spend a lot of time thinking about fears, worries, etc.
You have to answer that for yourself. I worked until I was 52 and then I had enough for my life. Then I stopped working and am no longer taking risks with my assets. I have enough for myself and having more than you need just causes worry. If I were you, I would wait. €1,800 gross is too little. If you're always free, it's far too little. But if you can expect further income from your ideas or books and it's your dream, then I would do it. If it doesn't work out, you can always go back to work. Good luck.
That doesn't work, because withdrawals reduce the amount of interest (or other income) you receive. Furthermore, your calculations don't take inflation into account, which also works against you.
I've included that. So check an answer first before commenting on it. Inflation isn't included. How could it? 🙄
They talk about a bit of everything. Stocks, fixed-term deposits, and other things (whatever is of interest at the time). Go to a good advisor and let them help you. That's what I did, too. Have a nice evening.🙋♂️
Thank you for your help. Would you invest the money in stocks, or should I invest it in my own business? Or real estate? Or another system? What would you recommend?
The whole starting budget thing doesn't make any sense if you want an answer to YOUR situation?
What's your starting budget? Let's say 10,000 euros?
If becoming a filmmaker is your dream, then study film. Use the budget to buy equipment and start your own business. That way, you'll get paid to pursue your dream.