Enjoy financial freedom by reaching the land of critical mass
If you’re doing investing right, you’re saving a large percentage of your income every month (like 25-50%) and stuffing it into stocks, bonds, and real estate investments.
At first, even with a high savings rate, your net worth will be low, and the money made by your investments will also be low, like maybe a few hundred dollars a month. However, as your net worth increases, your investments will make more and more money.
The land of critical mass
At some point, you’ll be making the equivalent of a minimum wage job from your investments, followed by a lower-middle class income. Eventually, a magical thing will happen. Your investments will make more than your yearly spending, and you can do whatever you want in life. This is the so-called land of critical mass (coined by Bob Brinker of Money Talk).
It takes a long time to reach the land of critical mass, because it takes a lot of money to make a lot of money. How much money? Well, that depends upon the investment.
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Source: Kevin, M.D. - Medical Weblog - Category: General Medicine Authors: < a href="https://www.kevinmd.com/blog/post-author/live-free-md" rel="tag" > Live Free MD < /a > Tags: Finance Practice Management Source Type: blogs