How to End Paycheck Reliance

December 4th, 2009 | Financial Security, Goal, Investing, Money, Personal Finance, Stocks

There are numerous ways to end paycheck reliance in your life, however some are obviously more feasible than others in terms of implementation. For example, winning the lottery is an excellent way to overcome your reliance on a paycheck to paycheck way of living, but how much can you really rely upon a lottery ticket to change your way of living? If you are a savvy investor and know how to put money away for a rainy day, you can actually use the interest that you're earning to get you out of this endless loop of paycheck to paycheck living. If you want to stop relying so hard on a biweekly paycheck to keep you alive, consider cobbling together an investment strategy that will build upon itself until it is allowing you to live comfortably without relying on a slip of paper.

The unique thing about investing is that different investment vehicles have different requirements, regulations, insurances and interest payouts. By doing your research, asking around, getting professional investment advice and weighing all of your different options, you can find some unique ways to invest that will give you a good return. You should mix your investment portfolio up, taking advantage of high reward investments with higher risk levels attached to them, as well as safer vehicles for investment that have smaller returns. This will balance your portfolio out well, so that if anything ever happens to one investment, the rest will be safe.

The main concept here is that when you are earning enough in a year just from the interest and growth alone, that is when you no longer rely on a paycheck. Learning how to end paycheck reliance, then, means learning how to become a savvy investor, and to find the investment vehicles that will pay out a decent amount of money every year without being too risky for you to handle. If you are serious about living based on your investments and no longer requiring a boring 9 to 5 job with a bi-weekly paycheck, then you need to learn how to choose the right investments, and how to live off of the interest payments that you receive on them. This is an excellent way to retire early and to escape the rat race, but only if you know how to invest wisely, and to get the most out of the investments that you do make.

The current state of the market is an excellent example of what happens when investments are not made wisely. You do not have to let this kind of thing happen to you, however, as long as you are smart about your investments and really weigh your options before you make any serious decisions regarding your money. It will take time and effort to build up your investment portfolio before you can quit your job and live off the interest, but it is well worth it in the end if you can accomplish this.

Photo Credits: 1

Originally posted 2008-11-24 05:29:06. Republished by Blog Post Promoter

Related Posts

How to Go Into Debt to Get Out of Debt This really sounds like the ultimate oxymoron, but one of the best ways to get out of debt is to go a little bit further in. What’s that? First, to help this make more sense, let’s clarify – if you need to get out of bad debt, going into good......
Successful Investing Tips and Techniques The true, most basic motivation behind investing is to grow our investment. People who have invested before will take their time, looking at the differing companies and the market, trying to predict how a stock will do in a year or two. Those investors whom are without the experience to......
How to Evaluate Your Financial Risks Whether we realize it or not, many of us face financial risks every single day. From the high powered investor, to the minimum wage earner, every one of us has the potential to lose everything we own. How can you evaluate your financial risks and find ways to secure your......
Managing Your Bills in Today's Economy Right now, it has never been more important to manage your bills and get your finances under control. The economy is going through a particularly rough patch, food and gas prices are going up and it can be pretty hard to make your paycheck stretch each month. If you're finding......
Sunday Money Madness- Fay Edition Hello and good morning, welcome to another edition of Sunday Money Madness. Our prayers are with those in Florida who have been flooded by Tropical Storm Fay. My parents were unfortunate to have sustained some damage from the winds if not the rains. Best wishes for your future - please......

Related Websites

Peter Schiff's New Book: (3) What You Need to Know About Invisible Inflation and The Stimulus Scandal Well so far, I'm just about halfway through reading Schiff's Little Book of Bull Moves in Bear Markets. I have to say (as I mentioned the other day to someone on Twitter) that I'm pleasantly surprised that not all of it is stuff that I've heard Schiff talk about before. ......
The Money Trap Review My third read in the 52 Books in 52 Weeks series was the The Money Trap. The author of The Money Trap, Ron Gallen, has a formal education in business, but has real world experience helping people with addiction recovery. This combination makes for an interesting analysis of those suffering......
Invest in Grocery Store Stocks You like to eat food, so why not invest in it? Grocery store stocks are down and the time to buy is now. Safeway (SWF) Stock is the lowest it has been in 12 years but don't let their current stock price of $18.80 fool you. More than a......
Car Collectibles 101 The word of collectibles is full of a wide variety of different objects and interesting things, including car collectibles for example. What makes collectibles so interesting is that there is something out there for everyone, every taste, every personality, and car collectibles are absolutely no exception to this rule. The......
Getting Motivated About Tackling Credit Card Debt To truly become free - and stay free - from consumer debt, it takes a strong shift in mindset, akin to the force of a tsunami (as my blogging colleague Baker from ManVsDebt has creatively put it). What's the point of paying off all those credit cards if you're just......