A recent survey in USA found that over 60% of respondents didn’t know how much they needed to retire and then another study on CNBC said $1.7 million.
…well that was a specific number.
and I argue, you don’t need $1.7 million to retire. You don’t even need $1 million if you are willing to embrace the new environment and opportunities the internet has created in the last 2 decades.
Old retirement strategies relied on the stock market, either from a personal portfolio or through a pension fund of some sort. OR, rental income from property.
Both strategies require a big “nest egg”.
Nest eggs is just a terms people use for the bulk amount of money you need to save up to then buy enough stocks or property to get enough rent or dividends.
Needless to say, if you’re going down this route then the amount you need is going to be a lot.
How much cash do you need coming in every month to retire?
This is the real question you should be asking yourself and not “how much money do I need to save in order to retire?”
Because once you change the question, the possible solutions change too.
I actually wrote about my lavish early retirement goals and I figured I needed less than $500k to retire early with a very VERY comfortable life.
Half went to a whopping 2 year emergency fund, because…you’re retired so your emergency fund shouldn’t be just the 6 months. And then the other half to buy stocks with to make a modest $2-3k in dividends every month.
But $2-3k every month is not enough to retire with. So where is the rest coming from?
Passive income streams online. A.K.A online businesses I automated.
I asked myself “How can I generate enough cash every month to cover my expenses?” That was my thought process. And I determined, if I wanted to retire early without winning the lottery, I needed to build income streams that are relatively low cost.
That naturally meant online income streams.
I started my publishing business on Amazon for less than $500 and now I make $2000+ every month in royalties from it.
I started this blog for less than $500 and now it generates more than $3000+ every month in affiliate sales and product sales.
Online businesses are cheap to start and easy to automate. It’s the perfect recipe for early retirement!
My $250k nest egg to buy stocks only gets me an average of 6% dividend yield. (about $2k a month)
But if I took that $250k and started a bunch of online businesses for $1000. That’s 250 different streams of income, each one with the potential of bringing in a regular source of money.
…now, I don’t advice you to actually start 250 businesses, but the point I’m making is, it’s cheap, fast and easy to do.
You create 3 – 5 income streams and we’re instantly talking about $10k a month!
Start a publishing business on Amazon that brings in $2k.
Start a blog that brings in $2k.
Start a drop shipping business that brings in $2k.
Start selling digital products to bring in another $2k.
…on one side you have $250k for $2 a month, or just a few thousand for $10k a month. Which one would you choose?
Stocks, you just need to buy them, it’s like shopping.
But businesses take upfront effort at the start. However, if you’re like me then I rather hustle a few years than save for a few decades.
The choice should be obvious. The answer to retirement of any timeline is to focus on how you can quickly, easily and economically generate a positive cashflow into your life.
If you want more advice of how to start creating a passive income stream online, then I highly recommend publishing on Amazon. It’s a great beginner business model anyone can master with a little bit of time. Learn more by clicking here.