Re: Have some money but no job now…what to do? - Posted by Jim FL
Posted by Jim FL on September 22, 2004 at 13:49:54:
I feel your pain.
Working for someone else? Yikes!
Not my idea of a good time at all.
But, sometimes, for some folks, it is indeed a good idea.
With your situation, frankly, we can all share some great ideas on how to invest, what techniques to use, etc. to best maximize your cash on hand.
The thing is, you, and only you can decide whether you have ‘enough’ to feel comfortable and not have a steady income.
The other thing to really consider is making a plan.
Where do you want to be in 3 months, a year, or perhaps more?
What level of income do you need to replace?
Are you willing perhaps to live below your means to help facilitate your plan?
I have no idea what kind of numbers you need to achieve to make a ‘decent living’ in your mind.
So, perhaps share with us what you want to accomplish, and perhaps we can help you hash out a plan, or at least answer questions about the details of it, and whether we know they work or not.
I personally quit my job some years ago and dove in head first full time REI.
I had to force myself this way, because having a solid paycheck to rely on, made me lazy in my pursuit of REI.
This is NOT a road I’d advocate to anyone, because it was HARD and LONG, with plenty of ups and downs.
Well worth the journey mind you, but not something I’d do again either.
Rather than just live off of savings, which I also did for a while after a couple deals and quitting the J.O.B., I realized that security blanket would not last forever either.
So, cashflow was the focus, along with building reserves.
I’d concentrate on day to day expenses, and how to get them covered first.
With your cash on hand, you don’t need to use it all to buy properties.
I’d invest in education at first, if you have not already, and perhaps more reading materials even if you have.
After that, work on your plan, and focus it on cashflow and large cahs injections as well.
I personally love to market hard for sellers, and buy houses using terms, with plenty of equity in them.
Because you have cash, a few bucks to sellers to move should buy you substantial equity.
After you have those properties, since you said your rental market is slow, then don’t rent to hold.
Instead, sell carrying paper.
This gets you down money to replace what you spent to get in, and hopefully make your nest egg grow, and cashflow, to replace that paycheck income over time.
Life is MUCH easier when your cash needs are met monthly, with ease.
Anyway, that’s my two cents anyway, and please, don’t rule out working a job as well.
Even something for less pay and perhaps part time would help the reserve cash you have last longer, or go towards more deals.