I’ve been making more and more money every month by always re-investing the revenue of the prior month. As my revenue stream keeps growing steady but slowly, I keep asking myself one thing: When should I stop reinvesting my money and put something by side?
Of course, I’m in a relatively nice position to just keep reinvesting the money because I also have a 9-5 job. It’s a different story if your family depends on your success. And of course, you’d have even more pressure on your ass than I do.
Lots of people start saving up money as soon as they are experiencing profit. This is not the right way to go I think.
In PPC, not every revenue dollar is profit. What you need here is growth and volume! Why put that money you earned by side and accept those 500 you earned last month? Why not reinvest those 500 bucks and its profit to make it 1.000 within a month?
That’s why I do reinvest my money. And you should do the same.
Re-Invest your money until you hit your absolute goal.
So when do we arrive at that point where you can start putting something by side?
I’d say that you arrive at this spot when you have hit your first ultimate goal. Lets say you wanted to break free. Well, that’s a nice goal. But I guess that wouldn’t be enough. Why not put your goal a little higher? Lets earn the money you need to break free AND earn 10k additionally monthly!
Now you can start saving!
One Comment
Posted June 12, 2008 at 12:56 pm
Good idea. That’s pretty much what I used as a goal. Just had my first month netting $10k. Pretty exciting! I quit my day job a few months ago though, well before I hit the 10k mark. Kind of gives you an incentive to work hard =).