Mo Money #467 Replace Your Salary By Investing
Sep 11, 2025
Discover how to replace your salary through investment strategies that empower you to work by choice. Learn practical steps for building an investment income and the importance of starting early. Overcome investment fears with solid management tactics like diversification and long-term holding. Explore ways to secure a comfortable retirement income while evaluating various asset classes. Gain insights on effectively balancing debt repayment and investment strategies, all aimed at achieving financial independence.
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How Much Capital Replaces A Salary
- Replacing a $100,000 salary typically requires about $2 million in investments using a 5% drawdown rule.
- The 5% rule assumes long-term market returns ~10% minus fees and inflation, leaving roughly 5% sustainable income.
Start Early — Time Shrinks Required Savings
- Start early because time dramatically reduces how much you need to save each day to reach the same goal.
- Save small daily amounts in your 20s versus much larger daily sums if you wait until your 40s or 50s.
Set Structure: Buckets And Automation
- Fix your structure first by splitting money into clear buckets for spending, short-term needs, and investments.
- Automate transfers so investing becomes the default and you avoid decision fatigue and leaks.