How to Quit My Job and Earn Money with Stock Investing?

April 18, 2017

My dear friend who is an OFW, also an engineer is having a career crisis. He is stressed out of work and wants to pursue his childhood passions as the signs of old age is dawning upon us.

My friend asked me, "How did you do it? How are you able to quit your job and still earn money from your investments?"

I took my time to reply. Because I know that its so simple that he might not believe.

I was thinking to myself, should I make it seem complicated so he thinks its a great idea, or should I make it simple so he gets it immediately?

The truth is, its really simple. And I'll tell you right now how I quit my job and live from my investments.

Step 1: Spend Less

10 years ago, I was the kuripot of the bunch. Never bought a car. Never bought a tech gadget. My only way of commute was by my mountain bike. That is because I realized 2 things.

#1 - You can make money work for you.

#2 - To be rich, you either need to work more, or spend less.

I am lazy, so I chose to spend less. And I really don't have a choice. How can you earn more from a stable job? Its called "stable" for a reason.

This simple fact may have bored other people to death. Big deal, yun lang pala. And walk away. And my friend was one of them.

Spending less was so simple, people ignore it. It was not a secret. Its just common sense. But when you start to think... "How much less?" Then you start to see the point.

Step 2: Save More

A person who earns 20,000 a month and saves 10,000 is a lot better than a person who earns 50,000 and saves 11,000. That is because, the first person saves more from his salary.

Money can work 24/7 if you allow it. But before that happen, you need to keep on saving.

Financial advisors will advise most of us that we should save 10% of our salary. Put the savings into their investment products, and lo and behold, you'll be able to retire at age 65, where you can withdraw those savings or make it as a pension.

Well, that's good, if your plan is to retire at age 65.

But most of us, passionate-about-life-people would want to retire early. We don't want to grow old in a cubicle. We want to try a lot of things, living life to the fullest. And 10% won't cut it.

That's why you need to save more. To retire early.

Step 3: Invest It All

Saving is good. But its not going to grow if you keep it in a bank.

Idle money loses value about 3% per year. Economists call it inflation, I call it lazy. Money should work for me! They shouldn't be slacking around like that.

So what do you do? Where should they go to earn 24/7?

You invest them. Invest it all.

All? Wouldn't that be risky?

Aside from keeping a little amount for emergency, you should alway be invested. That's the key to Step 4.

Step 4: Wait and Let it Compound

Compounding only work if you leave it alone for long periods of time. You can not withdraw from it, but you can add money to it. Given enough years, the money you saved and invested will grow, and it will take care of you.

And that's how you can quit your job.

The money that your investment earn will be enough for you to live on. You just need to wait and let it compound.

I hope I could tell this to my friend. But its all yours now.

I'm sure there may be questions about the strategy. But I'm all ears, just post any questions below.

About the author

Wayne quit his engineering job in 2009 to pursue investing. He is now a bum stock investor managing his own money. He wants to teach other people how to invest. How long before he quit is still left unknown.

Comments

Anonymous July 26, 2017 05:30:37

sir pag may 1million na ba pede na ba magretire o dagdagan pa..magkano the best na ipon saka invest.saka mag fuck you na lang sa trabaho

Wayne July 30, 2017 09:17:06

^ 1 million pesos usually is not enough for you to retire. But it is a very comfortable amount to have. You will need to decide how much is your "FU Money". Its different for each of us. I might create a video on how to compute the minimum amount for FU money. Thank you for the idea.

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