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Help this self-employed dude plan his exit strategy!
Old 09-23-2010, 09:30 PM   #1
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Help this self-employed dude plan his exit strategy!

Ok, here goes!
I'm 30 and self employed, have about 3,500 monthly "passive" income which could dry up slowly, but surely over the next few years if I don't tend to it. $400 of this passive income will be from interest from a very nice checking account setup. $100k cash, $10k life insurance/mutual funds setup and a paid off $125k house.

So, as a newbie on this front...what do I do? We are very frugal as a family. I would say we live off of around $2500 a month. Ultimately, I want to get to a point where we are financially independent and don't have to worry about much.
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Old 09-24-2010, 08:24 AM   #2
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You say that your $3500/month passive income will surely dry up if you don't tend to it. So if you tend to that, then you'll easily meet your $2500/month needs and you're sitting pretty. It's hard to give any more advice without some more information like what the passive income is from, what's entailed in tending to it, and is that something you want to keep doing (tending), or do you want to get away from whatever that is?
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Old 09-24-2010, 08:27 AM   #3
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It is an online subscription service basically. Sometimes, people need help and sometimes, they will leave for cheaper alternatives or more people will come on. The makeup of this is from about 100 subscribers.
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Old 09-24-2010, 08:49 AM   #4
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So people pay you an average of $35 a month for online "help"? Nice gig.
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Old 09-24-2010, 08:52 AM   #5
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there is more to it than that - I am being vague for a reason
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Old 09-24-2010, 08:57 AM   #6
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there is more to it than that - I am being vague for a reason
Is this an invitation to PM you for spam more information?
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Old 09-24-2010, 09:00 AM   #7
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lol no folks please don't spam me!
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Old 09-24-2010, 09:52 AM   #8
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Is this an invitation to PM you for spam more information?
I have some extra I could send you also.
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"In theory, there is no difference between theory and practice. But, in practice, there is." ~(perhaps by) Yogi Berra
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Old 09-24-2010, 12:09 PM   #9
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Without any more details, I'd guess most of your $3,500 is pretty tech-dependent. Some small change in technology or competitors could make it go away very quickly. Maybe I'm wrong, in that case, can you sell the business? I have no idea how someone gets $400 from a checking account unless you're playing bank.

I'd say your $100k won't cover your $2,500 monthly needs for long, so I'd plan on w**king quite a while longer. Invest the $1,000 of extra income each month and you'll get closer.
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