Gone are the days where you work for one or two companies for your entire working life. And I say, thank goodness. With modern changes in culture and technology, we are given more choice as to what we are able to achieve in our lives. There is a lot to see on our planet and if we are stuck in our day jobs we never really get a chance to see it. The only way to achieve complete freedom is to make you wealthy by working smarter. If you follow some proven strategies, you will be able to get that freedom to do the things that you choose.
So how do you fire your boss? Well, you really have to start thinking outside the square here. You also must be ready for well meaning family and friends who will tell you that you are being stupid and a job is much more secure than becoming an investor. Don’t listen to them. No one became wealthy from working in a job.
Depending on your current situation, you could well replace your income within one to three months by using a standard Share/Stock Market strategy that is only as risky as owning quality blue chip shares. Many people own a large portfolio of shares as it is, and they are happy to let them be. Another name for this is to buy, hold, and pray. You really could be working these shares much harder to supply you with a fantastic monthly income.
Let’s say you do not own any shares, but you do own a property and have substantial equity in it ($ 100,000 plus). If you were to get a Line of Credit you could buy some quality shares (on advice from a reputable broker). Now comes the fun part. You want to quit your day job but you need to replace your income right?
Well, why don’t you Rent the shares out? Just like a Landlord rents out a house or unit, if you own quality shares you can rent them out by the month. In the Stockbroking world this is called writing a Covered Call. Basically you can rent your shares out in lots of 1000 (in Australia, it’s 100 in the US), and you receive a handsome premium for doing so. By doing this most months of the year you can get about 2.5-3% return a month. Now that adds up to about 30% return per year, which is great by anyone’s standards.
A 3% return for the month is equal to about $ 3000, which you get the very day you rent them out. Imagine if you had $ 200 000 plus working for you, month in, month out. Can’t imagine going back to work for a living, could you?
But isn’t this risky you might ask? Well it has the exact same risk of owning quality shares and just holding on to them. The bonus is you get paid cash flow most months doing this. The humble Covered Call is the safest strategy in the Options market and it can be done by anyone. Online trading has made this even easier to do. If you are really risk adverse you can even insure your shares for what you paid for them, but that will have to wait for another time.