Here's what my physics teacher back in high school did to get his financial freedom.Hello,
I know that this question has been asked a billion times and I read many threads on the forum and found good advice.
But I still need to click things together, in order to avoid misstakes.
I am growing my company and asked advice on how to further do it on another thread. On this thread I wanted to have a saving/investing strategy, on what to do with the money, that I save on the way, given my personal situation.
I am 32 and live in France.
I started my private maths teaching company 3 years ago, and it makes 100K/year. My biggest priority is to grow it, but I reached a plateau. (If I grow more the company in France, I need to change my business structure and my taxes will double, and be more than 50%).
So I will need to at least double my revenues to make it worth it.
I teach online one-to-one lessons. My hourly rate is close to maxed out. Now I'm working on giving group lessons, and also will learn how to create videos and build a platform to scale my business. It will take some time, and during these next 1 or 2 years, my revenues will probably not dramatically grow.
I am able to save every month thousands of euros, and try to learn the basics about saving and investing.
I think it takes time and practice (and small misstakes), but it's an important skill that I have little knowledge about. I watched lots of videos but don't know where to start.
I have emergency savings, bought gold and some farming land. I don't want to spend too much time focusing on that, and just want to know that I can stockpile without thinking too much about it, and develop further my company.
I wanted to know what else I could do ?
I don't trust cryptos at the moment, and feel like the ship has already sailed for easy money. Maybe there will be more opportunities, but also big risks of losing if I get into it unsufficiently prepared.
-My first idea was thinking about saving more, for example in order to buy a flat in Prague where I want to live in a couple years. But I would get only 1,5% intesrest rates, and flats in center Prague are already super expensive and I would need to put all my savings + some debt into it. I think I can't afford it yet, so I think that I will rent first, and just increase my revenues, while having confortable savings.
-My second idea is to invest some of my savings in the stock market, but I have no experience yet (just watched videos). The current context seems risky to me, with the unstable geopolitical context. I was thinking of starting to invest a little, just to learn how it works (even if I lose part of that money).
-My last idea is just to stockpile in saving accounts and some gold, and to have money to reinvest in the business. But so far, my company doesn't need a lot of money. It will need more if I take the "scaling" route. I use my money to increase my visibility on various platforms, to produce better material and ressources, to get professional fiscal advice, training etc when it's needed.
So I wanted to ask what would you do ?
(My mid-term goal is to live in central Prague, having my company generating "passive" income with online content, while I still teach a little (less than 15 hours per week). I don't need to be super wealthy. I would like to make 300K/year at least. And from there, have the option to grow if I really want it. And I would like to preserve my wealth without doing big investing misstakes)
He taught GCSE and A level physics and he was so good at it that everybody who had any doubts about physics went after him and wanted tuition. He started off charging $70/hour and did groups of 4-10 at a time just like a normal classroom. People would still attend because he knew the shortcuts and best ways to explain the topics and how to best prep you for the exam.
After that he went on and wrote a book on GCSE physics and taught it in such a simplified way that his become a best seller. It's called Cambridge IGCSE Physics Explained by Kaleem Akbar. He sold this locally at first and now most of the people that study GCSE's in my country have this book because of how good it is.
He leveraged content seedlings and provided true value and it allowed him to impact hundreds and thousands of people in my country.
My advice for you:
- If you have some better/more simplified way of teaching a subject or topic, maybe write a book about. You could create online lectures on a certain topic and sell it as a bundle to the students. This would allow you to leverage content to buy your time back.
- Group tutoring could work in the short term for you to increase your revenue. Don't worry about the taxes you will need to earn more to reach your dreams anyway so might as well start.
- If you can't buy a house in cash, don't buy it because you can't afford it.
- Don't invest in the stock market for wealth, invest in it for income. Remember the stock market's upside is a maximum of 15% while you and your business have infinite upside.
- If you are going to invest in anything, invest in yourself and your business. Maybe start offering face to face tutoring and hire university students and train them to teach instead of you. Make sure you have a unique selling point though.
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