This isnt the usual make money blogging type of post. But something I think bears mentioning, or at least being spoken about.

We see from time a few bloggers go on about how much they make and income reports and all that, but have you ever thought about what to do with the money you make blogging?

Here is an interesting question. And one that I have been pondering for a while.
What are you doing with what ever money you are making online?
Are you investing? paying bills?; ie mortgage ?, rent ?, bills? food? gas? what ever ?.

I had a sit down and drag it out with a friend of mine in the financial industry 2 weeks ago.
We went over everything in my life, all my bills, and assets debts and savings.

The whole shebang.

What we came out with is that while I have been somewhat financially irresponsible (didn’t like hearing that)
The upside is that because of my online activities I am able to make up for the short sightedness.

Just a quick snap shot here of what I need to do to re-align myself with my financial goals.

And this is probably something everyone should do even if only done once in a while.

I “need” 1.5 million at retirement taking into account the cost of living, and monthly living/lifestyle at age 50, or the age when I have decided I want to “stop working for someone else” Oh I am 42 right now.

I need to make 1780/month from blogging.

In order to do that what I need to do is to invest 1780$/month.

Which thankfully, with the help of my “Job” and my online activities I am more or less, with some re-organizing and re-aligning of some other priorities am able to do.

But it does beg the question:
What are doing, what are your long term and short term goals for yourself, your life etc.
I mean yeah we all (assumption here) “want the ABM in our house that were hoping to create from our online businesses”
But have you set anything as a goal worth achieving or even thought about the future and where you want to be in X amount of years?

Heres some facts and figures for you to consider.

I dont know if any of you have heard of the rule of 72?

I certainly hadn’t until just a few weeks ago.

The rule of 72 simply states your money will “approximately” double at a point in time that is determined by dividing the number 72 by the interest rate you earn. So basically the rule of 72 will show you how your money will compound if given enough time to do so.

So for example:

• 72 divided by 2% your money will double in approximately 36 years.
• divided by 4% your mney will double in 18 years
• divided by 6% money will double in 12 years
• divided by it doubles in 9 years
• divided by it doubles in 6 years.

So another sort of spooky thing to consider is how many doubling periods do you have left in your lifespan.

Im not trying to freak anyone out.

Im just wanting to try to help you have a goal or a vision for where you can be.

Im certainly thankful for having a good friend in a position where I can get this kind of advice. We discussed a pile of things and I have a whack of other information thats very good. So if you interested in this sort of thing I could share some more of what we discussed and maybe we can as a group discuss plans for the future for ourselves and how we can get there.

I basically boils down to goals, Like in the example above now that I know what kind of cash cushion I need I can work the steps backwards and from that figure out how I can achieve the main over all larger goal.