7 ms·
I'm not rich, but I'd think that if that's just your keeping-busy hobby it seems like a relatively cheap one. You could save for not that long from just the 3%/
by asark 7y ago
I'm not rich, but I'd think that if that's just your keeping-busy hobby it seems like a relatively cheap one. You could save for not that long from just the 3%/yr, buy something used, fix it up yourself maybe paying a little here and there for things you can't do, come out cheap enough that you can make most of your money back and without ever touching your savings/investments.
I think it's more about avoiding investing in probably-doomed but romantic businesses that'll cut into your principal.
- basch 7y agoi did mean it in a "its ok if it operates at no profit or a slight loss because its a hobby to entertain me" sort of way.
- asark 7y agoI'd think anything cheap enough to fit in what you're treating as your annual % income budget's basically fine. You won't ruin yourself or significantly harm even a modest fortune with it. More like "don't invest any part of your principal in a restaurant, it will very probably fail, but only after you've thrown even more good money after bad and suddenly you're 20-30% less rich for no good reason". An ice cream stand or a taco truck or whatever, those are cheap enough you can get them off the ground without touching your savings given even a "modest" (call it) $100-120K after-tax income, provided you have some patience (to save a while for the big expenses rather than pulling it straight out of investment principal) and are doing a lot of the work yourself (which is the point, if it's a hobby, I'd think). Any money it makes is strictly a bonus.