Back in 2011, Dan Kennedy wrote a blog post titled “A Myth about Work”
He writes “your business should be something you extract money from, not put or leave money in.”
Dan wants business owners to get to the point where you have no ecomonic need to work. He says that once you get to this point, “the work you do gets to be a lot more fun. You get to be a lot more selective. And anytime you like, you can just stop.”
He says there are a couple of steps to get there:
- You have to sacrifice being an Empire Builder. Empire Builders re-invest virtually all into their businesses and extract little.
- You have to determine what your enough-is-enough number is, get there, and secure it.
- You have to keep from escalating lifestyle to match income.
This means you have to live as far below your means as you are able to.You can’t keep buying larger and larger houses, nor more expensive cars every couple of years. You need to take the difference between your means, and your spending, and Invest this. Dan writes “If you actually care about having all your income coming in effortlessly, it cannot come from business – it must come from investments.” He is suggesting taking the profits out of your business, and investing it to grow it further. This is just part of the actions needed to make your retirement plan a reality!