Your 21st Century Slave Army

11 Dec

Slave ArmyOwning human slaves was thankfully outlawed in the United States nearly 150 years ago. So what I’m about to tell you may seem a little bit odd. You can have a slave worker in today’s age. In fact, you can have thousands, maybe millions of them.

Before you panic and ask yourself what kind of horrific blog you are reading, I’m not talking about human slaves. Far from it.

I’m talking about YOUR MONEY. Every single dollar you earn has the potential to become your tireless slave, never complaining and always working for you.

If you take a small amount of time to make sure your various financial details are all aligned properly, you can begin to build an army. An army of dedicated slaves that seek to increase your wealth and guarantee your financial security. An army that works tirelessly for you, night and day, no questions asked, while needing nothing from you to sustain its work. An army that literally doubles in size in less than a decade, and can then double again, and again, and again.

Recruiting a Willing Army

Now you might think that building up a slave army of money sounds difficult, but it really isn’t. In fact, no matter who you are and what your situation is, you can start to “recruit” money to work for you. It all starts with designing your lifestyle around spending less money than you earn each month, and then increasing that monthly income as much as you can. I won’t get into the details of that here, but just know that anyone can do it.

Once you start to see a monthly surplus in your budget, that tiny bit of seed money is the first batch of recruits for your newly founded force. Take it, and invest it. Like I’ve said previously, it really doesn’t matter as much where you invest your money as long as you invest it in general. I’ll leave the merits of different investing strategies to later, more boring posts. Now that you have your first slaves beginning their work for you, simply repeat the cycle next month. And the month after that. And then (you guessed it) the month after that. If you have a consistent paycheck that doesn’t fluctuate from month to month at all, I highly recommend setting this up on some sort of automated system. That way you won’t even have to think about it.

Slaves Recruiting Slaves

Well what kind of slave army wouldn’t recruit its own new members? In addition to the new recruits constantly coming in from your hard earned paycheck, the most important element to the success of your new stash of cash is the fact that it grows on its own, without prompting or help from you. Thanks to the beauty of compounding interest, it grows at an astounding rate.

To analyze how fast, we can use the Rule of 70. Basically, you take the number 70 and divide it by your rate of return from your investments, leaving you with the approximate number of years it will take for your money to double. So if you are expecting a 7% return on investment, which would be pretty typical, your money will double every ten years. If you can get 10% yearly returns, it’ll take a mere seven years for your money to double.

So if you invest $10,000 your first year, and you get a 10% rate of return, you will have $20,000 in seven years. And in 14 years, it’ll be $40,000. And it just keeps growing from there.

We could get into the finer details and run all kinds of calculations to prove this point, but once again, I don’t think that’s necessary at the moment. The basics of this apply no matter what: Your army of money slaves will continue to grow very quickly over time, even without additional input.

Taking Control of the World

Of course, if you have an army of slave workers that do your bidding without question and double in size every few years, world domination starts to seem possible.

While you may not be able to buy a country or finance a war with the few hundred thousand dollars you’ve socked away, that doesn’t mean you can’t do some seriously awesome things. Once you have that kind of money, worries about finances vanish. You lost your job in an economic recession? Oh well, you’ve got enough money for ten years if you can’t find a new job. Your car broke down and it needs a $3000 transmission? No need for short term loans, just dip into your emergency fund. You won’t be drinking 200 year old scotch out of solid diamond glasses yet (which would be decidedly stupid anyway), but you aren’t hurting for money like so many others are.

Perhaps the most exciting thing about this slave army you’ve built is that at some point, it will begin to make more money for you than you’ve ever made in the past. That’s right, once you have enough money invested, you can literally make more money sitting on your couch then you can in the workforce.

You shouldn’t work for your money. Your money should work for you.                        (Click to Tweet That)

And while that may sound crazy, it really doesn’t take much to make that possible. Say you make $70,000 per year, a solid salary to say the least. You live a modest yet not totally frugal lifestyle and are investing about $20,000 per year in mutual funds, and after twenty years you officially become a millionaire! If you get an 8% return on investment, you will be making $80,000 per year from investment income. That’s right, your slave army of greenbacks will be making you more money than your boring corporate job.

When you get to this point, you are truly financially independent. Technically you are even earlier on, seeing as your investment income would be covering your relatively low spending several years prior. This is the biggest reason why early retirement is possible. Once you have a certain amount of money invested, your returns will cover your expenses, and you’ll have a big sum to fall back on in the case of extreme financial emergency.

And if you don’t want to retire early, you can continue working and amass an even larger fortune, which would allow you to put your kids through school, give back to your community, and other awesome things only possible when you have a slave army hard at work for you.

One Response to “Your 21st Century Slave Army”

  1. Jim February 11, 2013 at 4:14 pm #

    Great analogy about recruiting money slaves, I like it! I totally agree, once you spend your money on liabilities, it no longer can be your “money slave” it’s taken out of “circulation”. So the key is to buy assets that create more money in the long haul. Great analogy!

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