Why I am scared to be financially independent?

OP

Altoona, AL · Member since 2017 · 30 posts · 13 votes

7y

@Cody L. I’m so close to my goal that my properties will snowball more paid off cash flow in no time

OP

Altoona, AL · Member since 2017 · 30 posts · 13 votes

7y

@JD Martin thanks for your advise. I’m too proactive to completely stop. Plus I’m very active in military and I would still buy and fix up more properties. Just the quitting my job thing has me stumped

Caleb Heimsoth

Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes

7y

@Jacob Graul so are you actually almost to 10k a month or not? It’s not entirely clear. Either way, just keep going and don’t do anything drastic for a year or two. Take it slow and see what happens. Enjoy the ride

Frank Wong

Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes

7y

Hi Jacob,

You don't want to quit because you are a high achiever maybe that' what you are struggling with. Quitting and doing nothing is boring at 26. Maybe your current job is easy and you got it down. Why give up the money when you can continue to do it and stack cash and buy more. $10k a month might sound great now, but the cost of living is going to go up and you never know when you need to be at $15k a month or $20k a month.

I don't have a set age or time for me I created a life where I want to continue growing and also have the free time to do whatever I want. I tried to golf 3x a week and it gets boring. Nothing gives me more enjoyment then growing and stacking more cash.

5 Reply

Dan H.Pro Member

Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes

7y

@Jacob Graul If you are at very close to $10K/month cash flow I agree with @Cody L. that you would already be there if you had made better use of leverage.

I assume for you the $10K/cash flow meets you definition of financial independence. If this is the case. I suggest you spend time on whatever you primary passion is. If like @Frank Wong it is the accumulation of money then that should be your pursuit. If it is spending time with family and friends, you now can choose that. If it is to experience as many things in the finite period of a life then pursue that .

You have a lot of options. Choosing the best option for you can only be decided by you. However, nothing prevents you from pivoting at any time to a new passion.

Good luck

Mike Dymski

Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes

7y

Congrats on the real estate success and thanks for your service.

Sounds like the goal WAS FI rather than what you could do if you were FI. Deciding what to do next is not much different than deciding and executing on real estate strategies...just dedicate time to it. Check out blogs and podcasts from the FI community as well...lots of experience with the transition there.

Tanner Marsey

Rental Property Investor · San Diego, CA · Member since 2017 · 439 posts · 578 votes

7y

Deep down you know 10k/month isn’t enough. I assume this is 10k/month pre tax...? I mean, it probably is enough most of the time but keep in mind the economy has been on an upward trajectory since you were roughly 16 years old. If/when things go south a lot can happen. Decrease rent to keep occupied, places go vacant, credit tightens up and you cant expand. IMO, getting a second source of income besides buy and hold rentals is always ideal and leads to security. Obviously, at some point your W2 won’t be necessary but at 26....what else are ya gonna do? Acquire more properties, find a w2 that makes you consistent money and retire at 45 or something.

Rich S.

Central, MN · Member since 2015 · 148 posts · 184 votes

7y

My first thought is if you are still comfortable with your goal and want to quit, quit your 9-5. If you aren't, then don't. Goals ebb, flow, evolve all the time. Kudos to you for being so close to acheiving that one, but rarely someone as motivated as you are to get to a goal, will be satisfied where you are. Is your job something that if you gave it up you could never get it back? I think very often, folks worry about quitting because it can be forever, when in reality, if you are any kind of productive and reliable in your career, you'll always be able to find a job. The standard we accept in the workplace in today's world is staggeringly disappointing... so anyone who is worth a darn will always be able to find work. The folks screaming leverage-- yes will provide cash flow, but you will be very insulated from market conditions if you are paid off. In tough times, you can always aquire debt to get through... if crazy leveraged and market conditions get bad, fast, many folks have no choice but to sell or let go of properties. It doesn't mean either is wrong, it just means you are trading slower growth for security.

Cody L.

Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes

7y

Originally posted by @Jacob Graul:

@Cody L. I’m so close to my goal that my properties will snowball more paid off cash flow in no time

Okay man :)

Account Closed

Investor · Fairport, NY · Member since 2015 · 124 posts · 74 votes

7y

@Jacob Graul congrats on being in such a great spot at 26, that's inspiring. Do yourself a favor and read the 4 hour workweek. The other comments are providing good advice, you need something to transition into, not just away from something.

As for debt or debt free, on this site is like touching the third rail. Many strong opinions on each side, you need to do what is right for you and your specific situation. You are obviously doing something very right, keep going. Nothing says you can't put debt on your portfolio later if you want to expand.

Good luck.

Michael Ealy

Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes

7y

Originally posted by @Jacob Graul:

Ok, this is going to sound very different but.....

I am not quite exactly where I want to be with my goals yet at 26 years old (10k a month cashflow on PAID OFF properties) [NO DEBT] but I am however VERY VERY close. I told myself that once I reached my goal I would quit my full time job (still remain in the military reserve for insurance and 2nd retirement) and focus strictly on the growth of my business. But I don’t really even know how to quit, I don’t know what % of my income would be appropriate to live on (very frugal) but I do know I do not want to live my life and raise my kids working a 9-5 that’s why I have spent most of my adulthood in the Middle East making $ to acquire more cash flow. What age did you quit? Was you in shell shock at first or started hustling harder? Did you gratify yourself immediately or manage your cash flow responsibly? Did your business actually grow? Any more insight or advise would be great! PS I’m not opposed to leveraging properties I just set this 10k month goal on paid off properties and I attend on achieving very soon.

Awesome and congrats for being financially independent very soon!

I too achieved it way sooner than I thought possible.

But after acquiring over 1,000 apartment units...I am still at it. Sometimes, it's not the goal...it's the "thrill of the chase" that motivates successful people.

My suggestion: set a B.H.A.G. - Big Hairy Audacious Goal

And it's not just about the money. It's about what the money can bring - the lives it can change, how you can impact the world.

If $10,000/month is too easy - then set $100,000/month goal but give away 90% of that to a charity like @Jay Hinrich's "A Heroes Home". It's a charity for providing a free and clear home to a military veteran.

Tobias Stoll

Rental Property Investor · Member since 2018 · 69 posts · 19 votes

7y

@Jacob Graul

You are never too young to enjoy life and your freedom, you will find it quite satisfactory you are able to educate yourself on any topic you wish

And since you have the time you basicly grow your business you have all day to come up with new ideas.

I invested in real estate and solar plants which gives me a high enough cashflow to make a decent linving....

Quit your job enjoy life grow your business

Just my 2 cents

Dennis M.

Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes

7y

youd be a fool to essentially give up and stop now . Don’t buy into this new age crap philosophy about living like a bum on peanuts save everything then retire at 28 and continue to live like a poor loser . Look You’ve done well you’ve already found the formula to success so don’t quit , instead keep going and expand out . Think how many people you can help if you had 100k in income each month ! Don’t give up what your good at and settle to be another dirty unkept hippy walking around town with nothing to do all day . Aspire to be great

4 Reply

Tobias Stoll

Rental Property Investor · Member since 2018 · 69 posts · 19 votes

7y

@Dennis M.

How do you think the future looks like?? AI... robotics... do you expect everybody having a job??

Just my 2 cents

OP

Altoona, AL · Member since 2017 · 30 posts · 13 votes

7y

@Caleb Heimsoth real close

Caleb Heimsoth

Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes

7y

Originally posted by @Jacob Graul:

@Caleb Heimsoth real close

Then just keep doing what you’re doing

OP

Altoona, AL · Member since 2017 · 30 posts · 13 votes

7y

Guys! This is an awesome discussion I like all angles of it. 10k is pre taxed but I do plan on growing my business but in a very humble and strategic manner because I have time on my side. I appreciate whoever pointed me in the direction of reaching out to the FI community I think that’s a great idea. Here is my other than real estate goals after I quit my 9-5 job.

1. Be obedient to my Lord & Savior

2. Focus on my relationship and time devoted to my family

3. Continue to grow my business

4. Stay very active in my church

5. Go on mission trips (build churches)

6. Continue my Military career

I am way to proactive to sit around and eat Cheetos I was more so on the premise of getting over the anxiety of letting my w2 job go.

Dennis M.

Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes

7y

Originally posted by @Jacob Graul:

Guys! This is an awesome discussion I like all angles of it. 10k is pre taxed but I do plan on growing my business but in a very humble and strategic manner because I have time on my side. I appreciate whoever pointed me in the direction of reaching out to the FI community I think that’s a great idea. Here is my other than real estate goals after I quit my 9-5 job.

1. Be obedient to my Lord & Savior

2. Focus on my relationship and time devoted to my family

3. Continue to grow my business

4. Stay very active in my church

5. Go on mission trips (build churches)

6. Continue my Military career

I am way to proactive to sit around and eat Cheetos I was more so on the premise of getting over the anxiety of letting my w2 job go.

If real estate means having the freedom to able to go on missions help people and be more active in your church then pour it on and go for it . There’s some things money cannot buy

James Murphey

Waipahu, HI · Member since 2018 · 121 posts · 81 votes

7y

@Jacob GraulI think 10k a month should be enough for a family to live on in the south. 120k a year taxed at 15% plus state tax of 2-5%. You would easily clear enough for a family to live a moderate lifestyle. I really like the debt snowball, and plan to do something similar myself. Coach Chad Carson has a great philosophy of go small or go home. In one of his podcast he describes 3 families vacationing. At one point they are having such a great time the families decide to extend their stays. Only one family is able to do this because they have a small handful of paid off rentals. The others have big portfolios, and business that require their constant attention. Those families with the high net-worth, and big portfolios have to go home to manage their businesses. I think your philosophy in debt snowballing is great. As far as being afraid of retirement. As a teacher having summers off can be difficult if you have no hobbies. I hear many of my teachers friends wishing school would start back sooner. They do not know what to do with themselves. Many people that only have work as their hobby will make the excuse to work forever. It is hard to have free time when a person does not know what to do with themselves. I think it is important to develop hobbies and goals outside of becoming financially free or hitting some kind of number. I hope this helps I would suggest reading Lifeonnare, and of course Mr. Money Mustaches blog. He talks about this subject extensively.

Cristin Andrews

Rental Property Investor · Houston, TX · Member since 2018 · 70 posts · 33 votes

7y

Big changes always come with fear. What would be the worst case scenario and could you cope with that if it happened? What is the likelihood it could happen? What risk mitigation’s could you put in place to keep it from happening? These are the thoughts that help me get beyond the fear of making big changes. Then flip it. What is the best thing that could happen? How likely is that? What can you do to help that scenario along?

Henry Lazerow

Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes

7y

Looking back 2 years at your posts it doesn't add up. How do you have claimed $10k a month net of rental income in 2 years? Is this gross rental income? Day dreaming?

"New investor needing advice. Hello, I'm a 24 year old that's just started investing. I come from an area where there's not a whole lot of investors to reach out to for advice. I'm currently in a situation where I've done a couple deals owner finance but my pool of money is running dry. Really could use some advice on some questions I have." posted 2 years ago

"What is a good source to learn how to analyze deals and has the formulas to calculate them?" posted 2 years ago

Tobias Stoll

Rental Property Investor · Member since 2018 · 69 posts · 19 votes

7y

@Henry Lazerow

Here are many daydreamers one asked how to invest a million in cash and giving the impression of not having a relationship with money, he either never had to work for money or does not have a million seems some ppl dont have anything to do except spamming forums...

Just my 2 cents

Alissa Engel

Great Falls, MT · Member since 2017 · 97 posts · 172 votes

7y

@Jacob Graul

Your profile states that you, “came from nothing.”

Often, people who are raised in an environment where survival is the daily goal have a harder time giving up the security of a 9-5.

These people didn’t have the security of knowing that “it will all be fine if I screw up, loose my job, or my car breaks down”....because it quite literally might not have been “okay”. One of those things could have put you on the street.

I’d recommend doing some personal work around the “fear” of giving up your W2. What does that mean? What are you afraid of? Do you trust yourself? If you don’t trust yourself, who DO you trust?

If the fear is about something material or concrete...just plan for it. I think this is what you are doing by having paid off properties. It feels safer, and that’s okay. But ask yourself what else you would need to feel safe to quit. A certain amount in savings? A large life insurance policy? A strict budget?

But the fear most likely is emotional. Fear like that gets stuck in our body (think PTSD) and it can’t be rationalized away. Mindfulness and EMDR would be my suggestion if you discover that it’s an emotional fear coming from childhood.