Officially Debt Free, Where do I Start?

[Beerbread]

Hi guys, I hope that you're doing well! I'm sure this has been posted ad nauseum but the more I look into this, I'm the more choice paralysis I'm going through on what to do.

I'm fortunate to be in a position where I paid off all my student loans, live with family, and I'm very liquid ($82k in cash.) I definitely changed my life since COVID started and am working a decent slowlane job (went from poverty wages to $75k a year within a year and a half) and I'm back to working on my other business again now that I have an increased cash flow and figured out a schedule on how to incorporate my work.

I know MJ's books has probably delved into this, but I think because of my new "wealth" I'm still stuck in a frugal mindset of afraid of spending money even though it's for the benefit of my business or investments, everything has some sort of risk.

Is it a matter of, should I focus on one thing at a time and is investing in real estate/market/whatever even worth it at this stage I am? I apologize for the rambling post, I feel stuck.

 

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[Antifragile]

Invest in yourself. The cash you have isn’t enough to worry about investing in real estate or other financial assets either. It’s a great cushion for a rainy day. It’s also a great start up capital for a potential business.

Hope this helps. Best of luck.

 

[MJ DeMarco]

I know MJ's books has probably delved into this, but I think because of my new "wealth" I'm still stuck in a frugal mindset of afraid of spending money even though it's for the benefit of my business or investments, everything has some sort of risk.

You should. $82K is not a lot of money.

However, being debt free and having a nice little cushion is an awesome foundation to build something that truly sets your free. Give yourself a high-five.

As @Antifragile said it best, invest in yourself (an asset) in pursuit to build business (another asset) which will set you free.

If I was in your boat, I'd set aside a $15K emergency fund, $15K in business capital (could change on whatever you pursue) and start building out my paycheck pot ($50K). 5% on 50K is $2,500/year.

But ultimately, the only financial asset that will scale your wealth is your own business.

Start a business with $200K in profit and you likely also just created $1M in net worth.

 

[Beerbread]

This is very helpful, thank you everyone! I had a feeling that $82k wasn't going to get me very far at the moment, but your opinions help put things into perspective.

I'm always investing in myself thankfully. My slowlane job is a means to an end and if anything, the last 3 years have shown me that the sky is the limit in improving myself and learning new skills. I'm a very different person compared to 5 years ago in both in finance and in health.

You should. $82K is not a lot of money.

However, being debt free and having a nice little cushion is an awesome foundation to build something that truly sets your free. Give yourself a high-five.

As @Antifragile said it best, invest in yourself (an asset) in pursuit to build business (another asset) which will set you free.

If I was in your boat, I'd set aside a $15K emergency fund, $15K in business capital (could change on whatever you pursue) and start building out my paycheck pot ($50K). 5% on 50K is $2,500/year.

But ultimately, the only financial asset that will scale your wealth is your own business.

Start a business with $200K in profit and you likely also just created $1M in net worth.

Thank you, that means a lot! I never thought I could achieve that as quickly as I did, but I'm very proud of myself too.

The emergency fund and the business capital I already have something similar going on minus the paycheck pot. I can definitely build one now.

And like you and @Antifragile said, investing in myself and scaling my business is the true key to freedom.

 

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