I’ve written before about my modified pursuit of FIRE (Financial Independence, Retire Early). The twist is that I’m striving for FIE – to be a Financially Independent Entrepreneur. It’s an idea that I haven’t been able to get out of my head lately. Here’s why:
For as long as I’ve been writing this blog I’ve had a goal to achieve financial freedom by age 45. I’ve also declared a goal of reaching $1M in net worth by the end of 2021, the year I turn 41.
I’m on pace to achieve that, perhaps slightly ahead of schedule. More importantly, though, is a realization that my so-called side hustle – the online income earned from blogging, freelance writing, and financial planning – has far surpassed my full-time salary. Simply put, I could leave my day job tomorrow and still pull in enough income to meet our spending and savings goals.
So what’s holding me back? A few things. The security of a full-time job with benefits. A wife and two children who depend on my income. A $200,000 mortgage. The angst of where my next freelance contract will come from (and when it will be paid). Navigating the constantly changing online world while trying to earn a living. Having enough of a cushion in the bank in case things go sideways.
I think about all of those things. But the reality is my business has grown by nearly 50 percent this year. I’ve never been busier, and I know there’s plenty of opportunities I’m leaving on the table because I can only do so much on evenings and weekends.
If you’re familiar with Dragon’s Den pitches, the dragons always ask the entrepreneurs if they’re into their venture 100 percent, or if they’re still entrenched in their day job just in case their big idea doesn’t pan out. Invariably, the dragons pass on pitches where the entrepreneur isn’t fully committed to his or her venture. They want the founder to be all in.
I’m not saying that I’ll be taking my talents to Dragon’s Den anytime soon. The point is, as an entrepreneur, there comes a time when you need to be all-in to realize your full potential. It’s funny, but I’m scared to go all-in right now, even though I know that I earn enough income on the side to replace my salary and continue to live the same lifestyle.
What I’m trying to wrap my head around is the additional earning potential if I can dedicate even 10-15 more hours a week to my online business. The more I think about that, the more sure I am that I can make this work financially.
I like to wrestle with big financial decisions by talking them out here on the blog. It’s a great platform for these kinds of discussions. And while I won’t throw out a date or deadline as to when I plan to make this transition, know that it’s been on my mind for some time and I’m getting very close to pulling the trigger.
Financially Independent Entrepreneur. I like the sound of that.
This Week’s Recap:
This week I collaborated with Erika Toth, a director at BMO ETFs, to dispel the myth that passive investing is in a bubble.
Over on the Young & Thrifty blog I shared a beginner’s guide to index funds.
I went to Seattle this week to explore the city and take in the Seahawks vs. Rams game (which was an amazing game to see live!).
My wife and I are off to Vancouver next week to celebrate our anniversary. Hopefully we luck out with the same great, sunny weather!
Promo of the Week:
Interest rates on savings accounts have been ticking down at most big banks and credit unions. Once a market leader, Tangerine recently dropped its interest rate to a pitiful 1.15 percent. If you want to earn a higher rate on your savings then you need to look outside the big banks and consider an online bank.
EQ Bank has offered one of the best interest rates in the country since it launched in 2016. Its EQ Bank Savings Plus Account, which has also has some chequing account functionality, pays a healthy 2.30%* interest. That’s double Tangerine’s savings account and nearly triple what some of the big banks currently offer (short term promos aside).
What I like about EQ Bank is that it doesn’t mess around with short term promotions and teasers. It pays an everyday high interest rate – currently 2.30%* – on every dollar (up to a maximum of $200,000).
If you’re the type of person who likes to hold a large amount of cash, whether it’s an emergency fund or a short-to-medium term savings goal – do yourself a favour and start earning higher interest on that savings. Sign up for an EQ Bank Savings Plus Account here.
*Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.
Weekend Reading:
Stephen Weyman at Credit Card Genius shares the best credit card offers, sign-up bonuses, and deals for October.
Are wealth taxes a good idea? Here’s Nick Magguilli on the pros and cons of a net worth tax.
Some big thinking here by Morgan Housel on the three most important forces shaping the world:
“Find something that’s important to you in 2019 – social, political, economic, whatever – and with a little effort you can trace the roots of its importance back to World War II. There are so few exceptions to this rule it’s astounding.”
Speaking of FIRE, here’s why this couple ditched the FIRE movement and couldn’t be happier.
Advisors say this is the biggest behavioural bias driving investment mistakes.
Melissa Leong explains how to give yourself a fall money makeover.
Million Dollar Journey blogger Frugal Trader answers a reader question from a low income senior trying to decide between a TFSA and RRSP.
Erica Alini tackles the best way to generate cash from your investments in retirement.
In this video, PWL Capital’s Ben Felix offers his own take on the index investment bubble theory:
One of the biggest myths in investing is that you need to beat the market. You don’t — and you probably couldn’t if you tried.
The Evidence Based Investor blog offers five strategies that are better than timing the market:
“In summary, timing the market — while superficially an attractive idea — is fraught with danger. If you get lucky, great, but there’s no method to it. We’ve seen that not even the gurus are much good at it.”
A good piece by Ben Carlson on resulting: our tendency to equate the quality of a decision with the quality of its outcome.
The classic question of whether you should keep your company pension, or take a lump-sum pension buyout and invest it yourself.
Should you pay for your child’s university education? The Blunt Bean Counter blog explains how to tackle this problem.
Finally, Canadian Budget Binder explains how hoarding affects your children when you’re gone.
Have a great weekend, everyone!
