Comments on: Set Aside 10% Of Your Work For Retirement, Not 10% Of Your Income http://earlyretirementblog.com/set-aside-10-of-your-work-for-retirement-not-10-of-your-income/ Sat, 18 Feb 2012 06:47:34 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Retirement Age Guru http://earlyretirementblog.com/set-aside-10-of-your-work-for-retirement-not-10-of-your-income/comment-page-1/#comment-706 Retirement Age Guru Sun, 28 Aug 2011 02:13:54 +0000 http://earlyretirementblog.com/?p=144#comment-706 Having a side-business or side-job while working for someone is very attractive. However, many people would prefer to build up their career and move up the corporate ladder. They do see results much faster. As for a side-job, that could be answering some surveys or doing some part-time data entry, the payout is not so fantastic and there could be disappointments such as being exploited to do work that did not pay you. Regardless of the cons, I agree that diversifying your income source, is a smart way to protect yourself from retrenchment/economy downturn. Having a side-business or side-job while working for someone is very attractive. However, many people would prefer to build up their career and move up the corporate ladder. They do see results much faster. As for a side-job, that could be answering some surveys or doing some part-time data entry, the payout is not so fantastic and there could be disappointments such as being exploited to do work that did not pay you. Regardless of the cons, I agree that diversifying your income source, is a smart way to protect yourself from retrenchment/economy downturn.

]]> By: Donna Ostrus http://earlyretirementblog.com/set-aside-10-of-your-work-for-retirement-not-10-of-your-income/comment-page-1/#comment-393 Donna Ostrus Fri, 18 Mar 2011 14:50:10 +0000 http://earlyretirementblog.com/?p=144#comment-393 I love how you compared tithing to how much you should use to save. Very novel idea. I love how you compared tithing to how much you should use to save. Very novel idea.

]]> By: Celie@promopenscheap.com http://earlyretirementblog.com/set-aside-10-of-your-work-for-retirement-not-10-of-your-income/comment-page-1/#comment-381 Celie@promopenscheap.com Mon, 14 Mar 2011 15:06:28 +0000 http://earlyretirementblog.com/?p=144#comment-381 Great advice but as I am now retired, it is a bit late for me to follow. Happily I did start my own business and that was successful enough to give me a happy retirement. However I am creating a book for my grandsons to give each of them when they reach 18 and this piece of advice will be in there. Hope they take it. Great advice but as I am now retired, it is a bit late for me to follow. Happily I did start my own business and that was successful enough to give me a happy retirement. However I am creating a book for my grandsons to give each of them when they reach 18 and this piece of advice will be in there. Hope they take it.

]]> By: Chris Eggleston http://earlyretirementblog.com/set-aside-10-of-your-work-for-retirement-not-10-of-your-income/comment-page-1/#comment-215 Chris Eggleston Fri, 14 May 2010 21:19:23 +0000 http://earlyretirementblog.com/?p=144#comment-215 First of all I love this post! The way that Kyle laid out the idea and concept turned on a lightbulb in my mind. The idea was not new to me. Something I had heard people say for years. I guess I just never completely understood it until I read this post a few months ago. I come back and read it again and again, to help keep it fresh in my mind. I noticed a comment made here by Adrian in February and I do a lot of consulting for people that are interested in starting a business, but just need some guidance. The question posed by Adrian: "I make 14k / year.. sooo… how can I even make 1k / month on a side gig if that’s what i earn working 160 hours a month?" This question is the same question I get every time I start working with a new client. My follow up question is always, "are you passionate about what you do at your day job?". The answer is usually, NO! I then ask a second question, "do you think you could make an extra $200 a month doing something you absolutely love to do, even if you only spend 2-4 hours a week working on it?". The answer is typically, YES! What I think happens to us all is that we do two things, (a). we think to hard and too big about the money, and (b). we let our income determine our potential. Point A. In order for Kyle's suggestion to work, you do not have to start out making an extra $1000/month. If you are spending (to use Adrian's example) 160 hours a month or 40 hours a week at a job then you would only spend 16 hours a month on your side business. Is it possible to make $1000/month in only 16 hours?...absolutely, but it is more realistic and easier to comprehend that 16/hours of work will generally result in something more like $200/month. What could you change or improve with an extra $200/month or 2,400/year? If you can produce an extra $200/month doing something you love, then you can eventually get to that $1000/month marker and then even replace your 14k/year job. Because you will be doing what you love, not just punching a clock. When you are passionate about your job or business the money is not what is most important. The thing that matters the most is the difference you are making and the happiness you are experiencing. Point B. Our income does not determine our potential. What one company is willing to pay you does not mean that is all you are worth! You are the only person that can truly determine your worth. Sure you can buy into your bosses opinion of you and assume he is right, your not worth that raise, or your only worth a 50 cent raise every year. Or you can happily accept the money your employer pays you and determine to expand your worth by making more money working 10% of the time doing the thing you love the most. Some people I work with are only interested in finding a way to make an extra $500/month because their salary is just a little short each month to cover their needs. Some people want to get way from the grind and the rate race. Some want to be able to stay home with their children and need to find a way to replace their income and work from home. Some people love their 9to5 and just what to start a small business they can run on the side. They have no intentions of quitting their jobs, they just want to do more. For example, I work with a lot of Dr.'s and they love their careers and are not going to quite practicing medicine, but they have written a book and they want to startup and online business for selling their book. Whatever the reason or motivation behind you applying Kyle's idea, you can be successful at it, if you are willing to work hard and plan out your success. Get help form people who have done it before, ask questions (I am happy to help @chrisegg), and read some books. I suggest two books: CRUSH IT! by. Gary Vaynerchuk Making Ideas Happen by. Scott Belsky You may also find these two post on my blog helpful: This one I wrote after reading Kyle's post for the first time: http://blog4biz101.com/blog/business/leaving-a-legacy-its-not-to-late-act-now/ This one is my stance on economic recovery and how anyone with a passion can be part of the solution: http://blog4biz101.com/blog/consulting/economic-recovery-it-starts-with-passion/ Best of luck to you all! -Chris First of all I love this post! The way that Kyle laid out the idea and concept turned on a lightbulb in my mind. The idea was not new to me. Something I had heard people say for years. I guess I just never completely understood it until I read this post a few months ago. I come back and read it again and again, to help keep it fresh in my mind.

I noticed a comment made here by Adrian in February and I do a lot of consulting for people that are interested in starting a business, but just need some guidance.

The question posed by Adrian:
“I make 14k / year.. sooo… how can I even make 1k / month on a side gig if that’s what i earn working 160 hours a month?”

This question is the same question I get every time I start working with a new client. My follow up question is always, “are you passionate about what you do at your day job?”. The answer is usually, NO! I then ask a second question, “do you think you could make an extra $200 a month doing something you absolutely love to do, even if you only spend 2-4 hours a week working on it?”. The answer is typically, YES!

What I think happens to us all is that we do two things, (a). we think to hard and too big about the money, and (b). we let our income determine our potential.

Point A.
In order for Kyle’s suggestion to work, you do not have to start out making an extra $1000/month. If you are spending (to use Adrian’s example) 160 hours a month or 40 hours a week at a job then you would only spend 16 hours a month on your side business. Is it possible to make $1000/month in only 16 hours?…absolutely, but it is more realistic and easier to comprehend that 16/hours of work will generally result in something more like $200/month. What could you change or improve with an extra $200/month or 2,400/year?

If you can produce an extra $200/month doing something you love, then you can eventually get to that $1000/month marker and then even replace your 14k/year job. Because you will be doing what you love, not just punching a clock. When you are passionate about your job or business the money is not what is most important. The thing that matters the most is the difference you are making and the happiness you are experiencing.

Point B.
Our income does not determine our potential. What one company is willing to pay you does not mean that is all you are worth! You are the only person that can truly determine your worth. Sure you can buy into your bosses opinion of you and assume he is right, your not worth that raise, or your only worth a 50 cent raise every year. Or you can happily accept the money your employer pays you and determine to expand your worth by making more money working 10% of the time doing the thing you love the most.

Some people I work with are only interested in finding a way to make an extra $500/month because their salary is just a little short each month to cover their needs. Some people want to get way from the grind and the rate race. Some want to be able to stay home with their children and need to find a way to replace their income and work from home. Some people love their 9to5 and just what to start a small business they can run on the side. They have no intentions of quitting their jobs, they just want to do more.

For example, I work with a lot of Dr.’s and they love their careers and are not going to quite practicing medicine, but they have written a book and they want to startup and online business for selling their book.

Whatever the reason or motivation behind you applying Kyle’s idea, you can be successful at it, if you are willing to work hard and plan out your success.

Get help form people who have done it before, ask questions (I am happy to help @chrisegg), and read some books.

I suggest two books:

CRUSH IT! by. Gary Vaynerchuk
Making Ideas Happen by. Scott Belsky

You may also find these two post on my blog helpful:

This one I wrote after reading Kyle’s post for the first time: http://blog4biz101.com/blog/business/leaving-a-legacy-its-not-to-late-act-now/

This one is my stance on economic recovery and how anyone with a passion can be part of the solution:
http://blog4biz101.com/blog/consulting/economic-recovery-it-starts-with-passion/

Best of luck to you all!
-Chris

]]> By: sanme98 http://earlyretirementblog.com/set-aside-10-of-your-work-for-retirement-not-10-of-your-income/comment-page-1/#comment-145 sanme98 Sun, 14 Feb 2010 02:49:42 +0000 http://earlyretirementblog.com/?p=144#comment-145 Never too diversify. Anyway, have extra 1 beside current job is quite OK. Never too diversify. Anyway, have extra 1 beside current job is quite OK.

]]> By: adrian http://earlyretirementblog.com/set-aside-10-of-your-work-for-retirement-not-10-of-your-income/comment-page-1/#comment-139 adrian Sat, 13 Feb 2010 04:54:17 +0000 http://earlyretirementblog.com/?p=144#comment-139 I make 14k / year.. sooo... how can I even make 1k / month on a side gig if that's what i earn working 160 hours a month? teach me master.. I make 14k / year.. sooo… how can I even make 1k / month on a side gig if that’s what i earn working 160 hours a month?

teach me master..

]]> By: Kyle http://earlyretirementblog.com/set-aside-10-of-your-work-for-retirement-not-10-of-your-income/comment-page-1/#comment-129 Kyle Thu, 11 Feb 2010 13:39:31 +0000 http://earlyretirementblog.com/?p=144#comment-129 I would argue that if you're spread thin with your time, you're probably not all that highly productive. I would argue that if you’re spread thin with your time, you’re probably not all that highly productive.

]]> By: akthe47 http://earlyretirementblog.com/set-aside-10-of-your-work-for-retirement-not-10-of-your-income/comment-page-1/#comment-127 akthe47 Thu, 11 Feb 2010 02:50:02 +0000 http://earlyretirementblog.com/?p=144#comment-127 Interesting article, though you have to wonder where the 10% of effort is going to come from, esp. from individuals (like readers of this blog) who are already highly productive and spread thin with their time. Interesting article, though you have to wonder where the 10% of effort is going to come from, esp. from individuals (like readers of this blog) who are already highly productive and spread thin with their time.

]]> By: Kyle http://earlyretirementblog.com/set-aside-10-of-your-work-for-retirement-not-10-of-your-income/comment-page-1/#comment-121 Kyle Wed, 10 Feb 2010 04:41:53 +0000 http://earlyretirementblog.com/?p=144#comment-121 Darek, what's not scalable about it? Hiring staff to do the work while you check up on them every once in a while seems like a very scalable business model to me. The whole point is to remove the bottleneck: you. Hiring somebody to manage things for you is the easiest way to do that. And investing more hours of work is better than investing more money because you can earn an astronomically-higher return that way. Instead of criticizing random articles as stupid, you might do well to actually take action based on their advice every once in a while. You know, actually TRY it before criticizing. If you did, you just might find the advice isn't so stupid after all. Darek,
what’s not scalable about it? Hiring staff to do the work while you check up on them every once in a while seems like a very scalable business model to me. The whole point is to remove the bottleneck: you. Hiring somebody to manage things for you is the easiest way to do that.

And investing more hours of work is better than investing more money because you can earn an astronomically-higher return that way.

Instead of criticizing random articles as stupid, you might do well to actually take action based on their advice every once in a while. You know, actually TRY it before criticizing. If you did, you just might find the advice isn’t so stupid after all.

]]> By: Darek http://earlyretirementblog.com/set-aside-10-of-your-work-for-retirement-not-10-of-your-income/comment-page-1/#comment-120 Darek Wed, 10 Feb 2010 01:26:32 +0000 http://earlyretirementblog.com/?p=144#comment-120 Any one who started a small business and then started another and another can tell you that this idea is not scalable and ultimately becomes a real business with staff overlooking your ventures, if advice is to start your own corporation to retire early then just say so. Another point: Reason humanity adapted money is because it is easier to exchange money for others labor/product rather then exchanging Labor directly. Investment in more hours of work is equivalent of investment of more money with out tax benefits, how you get more money to invest is a diffrent story. Ultimatly article is stupid and there is no new idea here. Any one who started a small business and then started another and another can tell you that this idea is not scalable and ultimately becomes a real business with staff overlooking your ventures, if advice is to start your own corporation to retire early then just say so.

Another point:
Reason humanity adapted money is because it is easier to exchange money for others labor/product rather then exchanging Labor directly. Investment in more hours of work is equivalent of investment of more money with out tax benefits, how you get more money to invest is a diffrent story.

Ultimatly article is stupid and there is no new idea here.

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