If all I have is ten dollars and I risk it, I am much braver than when I risk a million if I have another million salted away.
Seriously — for a lot of people in the market (this used to me) there are only 2 levels of achievement: rich or not rich. Well, I am here to say eff that — you don’t need to be rich to be independently wealthy.
I swear — it’s like money is a drug to some people. They just can’t get enough. They want more more MORE!. And you know what — that’s REALLY boring to me. What about living a life? What about enjoying success?
I like to look at trading as a part of an independently wealthy lifestyle design. And what I mean by “you don’t have to be rich to be independently wealthy” is this:
Instead of looking at your current lifestyle or some super future lifestyle where you get anything you want whenever you want it — why not live consciously, in the moment, and reduce your monthly expenses to such a level that trading can EASILY cover it?
Because when your passive income or income generating assets are greater than your monthly expenses — guess what — you are independently effing wealthy.
That’s what I’m going for.
For instance, believe it or not, my current monthly expenses equal $1,400.00. That’s it! Gas, rent, food, everything!
Yep — and I don’t live in a cardboard box, either. I live a couple blocks up from the beach, drive a BMW M3, and go out a lot! And all of that ads up to $1,400.00.
I did this by consciously focusing on what was important to me, reducing my living expenses, paying off debt, making some tough choices regarding my business and financial life and deciding that the most important thing to me is freedom!
How Much Is Enough?
So how much do I need to earn to create $1,400.00 a month trading? Well, if my equity account is $10,000.00 then I need to earn 14% a month. If it’s $20,000.00 then I need 7% a month. If it’s $30,000.00 then I need 4.6% a month. Sure, this doesn’t include taxes, but you see where I’m going with this.
Inspired by crazy people like Tim Ferris who convinced me that a 4 hour work week really is possible, for the next 1-2 years I am going to scrimp and save all of my pennies and put together an awesome equity account that I will live off of. And I will document it all here.
No doubt my current trading method earns me 4% a month. And if not, there’s tons of GURU’s out there that promise me I can do way better than that!
What about you, fellow hard working retail traders who want to be wealthy?
Are you in? Maybe you’re already independently wealthy (good for you!) or maybe you’re not. But it can’t hurt to pare back expenses and look at what’s really important in your life.
So come on — let’s rock this shit!