At what point should you park (invest) your fastlane earnings?

[RealDreams]

So I recently watched this video by MJ

View: https://www.youtube.com/watch?v=YgtZfYby6EY&ab_channel=MJDeMarco
, and it made a lot of sense to me.

I have around 90k euros which I took out in dividends from my fastlane venture just recently and was about to invest them in the S&P 500 (and maybe 10% of that on 1-2 stocks).

The point is, it's true. There is an opportunity cost here: time. I am 24 and have been working all my life for as far as I can remember. I never really took vacations or time off, and here I am now with more money than ever and I still feel like it's not enough and I should make more.

I have 1 year of savings too so my net worth currently is around 120k euros. My fastlane business keeps selling and averages 50k in gross revenue a month.

Do you think I should keep the money or invest them? Is investing 75% of my net worth stupid at 24 years old?

I know this largely depends on my goals, and my goal is to live life mostly. As I said, I never really had fun, but that doesn't mean to say I want to blow all my money. I want to retire from the rat race and be able to earn passively enough to cover daily expenses and rent, and after that I can figure out how to make more to actually buy things I don't need but want (a supercar, a vacation, whatever).

Thing is, my gut feels something is wrong. I feel like getting old. Being 16 feels like yesterday. And I will be 30 before I know it. I don't want to be the white haired old man with a Ferrari. I want to be young and rich and I know I am already on the right path, but when I look at a measly 5% return annually, which is 4500 euro for a 90k principal, that doesn't seem so appealing, I could barely survive for 2 months with that amount.

I have 1-2 ventures which I have always wanted to pursue and honestly, I could pursue them soon with what I have, and I would be doing something I actually enjoy and develops my own self, because I don't particularly enjoy my current business any longer and it's soul sucking.

What do you think and do you have any suggestions?

 

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[MJ DeMarco]

You should always be investing and getting a return on your money.

1. Your business creates wealth.
2. Your investments create passive income and an investment in your future giving you more options if you exit your business.

Right now US treasuries are paying 5.25% which is pretty good considering the risk in the stock market right now is elevated.

While my ideas on investments aren't mainstream, I always try to invest in companies that pay dividends, or instruments that give me a nominal return. The index fund approach is this year has done spectacularly well, however, as I always say, "If everyone is doing it ... then I won't." Behind this is exacerbated risk, risks that haven't quite yet materialized, and may not for years.

 

[DoTheWork]

I'm in a very similar position as you. I'm 24 and have roughly $110k USD saved up.

$90k in a high yield savings account at 5%. $10k in stocks/ETFs.

My business needs to grow more to cover my monthly expenses, but I am also dealing with a chronic illness right now and I can't work much.

For that reason, I'm afraid to reinvest that money back into my business. I'd rather have it as a safety net to draw from until I can grow my business in a way that doesn't cost a bunch of money. That'll buy me 3-5 years if I'm unable to grow my business, depending on how much I need to draw each month.

However I'm not sure if I'm making the right move with that money either.

I'm dollar-cost averaging $1k per month into ETFs right now. Otherwise I'm not sure if I should take $5-10k to inject into the business or just leave it all as a safety net.

 

[Jobless]

Hire an assistant. What type of person you need depends on what you're doing. Preferably someone your own age or a few years younger, seeking work experience. This creates a good dynamic. If you have exciting projects going on, people should be interested. It can be part-time work and for a limited period of time, example: 1 year. The point of the assistant is to 1. get tedious but urgent tasks off your back and 2. hopefully, they have some skill/knowledge you lack, which may aid you.

 

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[biophase]

Do you think I should keep the money or invest them? Is investing 75% of my net worth stupid at 24 years old?

What does keep the money mean here?

 

[RealDreams]

What does keep the money mean here?

Keep liquidity available until I figure out what to do with them. There's only one risk here, I might get tempted to spend them. If I have the same amount of money 1 year from now I might as well have put them into an index fund and gotten 5% return on them.