teamleadnew

Not offended at all. I just found your answer to be a little to "standard/cliché" and not targeted enough. Like putting someone in a bucket right away. It's not the case trust me... I'm better than that ;) Thanks again for taking time to post an answer. Really appreciated.

This is after tax money. Financial advisers are like car salesmen unless you're extremely rich. I'm already taking care of my investment portfolio (bonds, index funds, etc.). What they're gonna say is "double down", "increase your position". 500k because I'm aiming for places like Seattle, Austin, Denver, etc. Still looking to stay around a tech hub that is still cheaper than the Bay Area.

1. that's exactly what I said I would do by paying off all my debts. This is a life with no debts. zero loan, no mortgages. Plus, like I said, I would still have enough cash on the side (about half a million) so I wouldn't have to worry about saving a dollar anymore. That 9-5 steady income would become like a plus rather than a necessity like 99% of the world.

2. That's not a short term goal. I don't care about increasing my income right away. I'm already making enough money as a software engineer working in the Bay Area. I don't need more money technically speaking. Problem is, I can't work at a 9-5 job anymore. Why would someone work at a 9-5 job? To pay bills? To buy a car? To buy a house? To have a steady income, etc. Like I said, I'd use that money to make my 9-5 job as obsolete as possible for a smooth transition to generating money on my own.

Where I live (Bay Area), $500k gets you a one car garage. I don't necessarily want to live in a place where schools aren't that great and where there's no opportunities. I'm not talking about living a luxurious life in San Francisco, but looking at places in Texas, Washington state and any other tech hubs, $500k gets you a house. Not a mansion. Not willing to move to Nebraska yet or Wisconsin... nothing against these 2 beautiful states but again, it's about opportunities for us and our kids. I said $500k which is my original budget, it depends on where my wife and I decides to move. Again, today, I make about $200k/year and I don't own a house. If I spend $500k in a house tomorrow, it ain't gonna change anything but the fact that I own a house outright. You see where I'm going? It's not about not being smart or not knowing how to manage money... nothing to do with a lottery winner like you said. This is pure extra money to me. Should I put it in a bank account and not touch it for the next 10 years? Worst investment ever... real estate will bring way more money than waiting for the FED to print out more papers. $500k US paper dollars will be worth $250k in 10 years. I already have various investments, crypto, bonds, index funds.

Also, as a home owner you have what it's called tax itemization. $24k/year if you don't itemize. A house that is paid off would cost me less than a rental. Keep that in mind. People are used to think that buying a house puts you in debts for life. It won't be the case since I would buy the house cash and still be making enough money per year. It's all about that transition from my 9-5 job to a fully autonomous business. If I fail with my project, I won't go bankrupt thanks to being out of debts with half a milli on the side. working at mcdonald's would be enough for me to end up positive at the end of the month.

Then why would spending $500k impact my 9-5 independence? I'm not linking the two. It's more about satisfying short terms needs like getting a house for my family then getting out of debts quickly. I think it's 2 different things. A lot of people here say you should become independent without any extra money. I agree, how about using that extra money to do what I would do by making a lot of money on my own? If I create a business and generate $1 million, I'd certainly buy a house. Again, I want to use this money to make myself focused 100%. Think of it as luxury money in the sense that I wouldn't have to worry about anything but my own project.

I have a couple of side projects I'd like to explore more. The problem I have is that my 9-5 job that utilizes most of my brain everyday. I come back home mentally exhausted then here is the baby.

I agree with you on the $500k. That is just the idea, it doesn't have to be that much and will depends on where we decide to move. Definitely not looking for a mansion :)

So setting myself up to where I could free-up most of my time would help a lot in this transition to no boss-life. Plus, most of my projects do not require any crazy investments, we're talking hundreds of dollars. It's just about paying the bills for the house, gas, food, etc. while getting up and running with a business/income.

I thought about passive income but I'm more of an active income type of persons. I'd rather bet on my ability to generate money from my own sweat. That's what would drive me... Especially if everything else is taken cared of (house, retirement, debts). That means less pressure and more focus.

Also, passive income is unfortunately not the best tax optimizer unlike a business where you can use a lot of tax write-off.