As part of taking back control and owning your future, one of the things you need get a handle on is how to manage your money better. Or maybe from a different perspective if you’re already doing it well. While I’m sure you’re doing this today, leaving Corporate America in early retirement brings a whole new perspective to it.
Going out on a your own means replacing a steady paycheck with other income sources. You can start your own business, invest to create money, or spend down other assets. How you organize that will be up to you.
For me, I’m breaking down money management into two categories: Savings and Dividend Investing.
Manage your Savings
Aside from the sinking funds that I already setup in order to pay current and future bills, I also need to grow my emergency fund.
For others, this may also mean reducing expenses or paying down debt in order to have the additional money to save.
My strategy also includes building a Dividend Investment portfolio for the long term. If you read other blogs or financial writings, you’ll notice there’s strong opinions on various angles about how you should invest your money. I’m choosing Dividend Investing because it’s something that can pay money (dividends) without needing to sell the actual stock. Dividends are one of the common income streams of millionaires, And are also useful because it’s a passive income stream. I can work on building other income streams while this one grows on its own.
Additional Topics to help you manage your money
As mentioned above, savings can be thought about from a few angles. Are you saving money in the bank or are you reducing your expenses or debt. To own your future, you will need to manage your money from a holistic, big picture approach. Let’s break that down into simpler goals in order to make it achievable instead of overwhelming.
You can do this!