Why I'm 9-5ing...

Firstly, I must apologise wholeheartedly for not posting for the last two weeks. If you're trying to build an audience (as I am), it's a cardinal sin to not have new material regularly, but this post will hopefully explain the situation...

Since 2003, I have worked for myself. Before then I was studying full-time, but I then started my first company at age 19. It was at first a great little sideline, and then developed into quite a successful business, which took up most of my time once I'd finished university. Since 2005, when I graduated with my Bachelor's degree, I have pretty much lived the archetypal small business entrepreneur's life: Wake up when I want to; work like crazy during busy periods; take time off during slow ones; dabble in a few other projects as I see fit; spend time shooting the breeze with other like-minded peers; basically run my own life and my own show. Until recently, I felt that that was a very fulfilling, successful life.

Like most entrepreneurs do at some point, though, I started getting a little restless earlier this year. For a guy my age, I was making good money, had few expenses, made time for myself whenever I wanted it - but I felt I needed a new challenge. I wanted to try getting into the corporate world, where I could expose myself to bigger businesses, apply the knowledge that I've built up, and basically learn as much as I could. I did have my reservations, though: early mornings, working on someone else's clock, less time for my own businesses, restricted holidays, etc. Nothing worthwhile is ever easy, though, so I thought I'd give it a go. I went to a couple of interviews, and was offered one or two positions, but none of them really grabbed me. That was until the end of January...

I had spotted an ad in the newspaper for a Financial Manager position at a fast-growing tourism concern. I am involved in the tourism and leisure industry through my limo company, and have the Accounting and Finance knowledge which was required, so I went for an interview. What really piqued my attention was how the interviewers (the MD and the FD) were talking about how varied the role was (from finance to HR to strategy), as well as opportunity to work flexible hours and locations (they want to move away from the 'in the office 9-5' model). They also didn't have a problem with me continuing to run my businesses on the side, as long as it didn't influence my quality of work. The package was a pretty decent market-related one, and I felt that this might just work out. As the story goes, they offered me the position on the day of my first interview, and I accepted.

I started two weeks ago (hence no posts since then - taking some time to adjust to early wake-ups!), and am really starting to feel like this is going to work out nicely. The office is a great environment - friendly yet professional - and I'm starting to get a decent feel for the role (check them out at www.noxrentals.co.za). Once my training is completed in the next few weeks, I'll be able to do some work from home, and adjust my hours as I see fit (which is great!). Importantly, I've realised that they definitely weren't lying about the variety of the role - no two days are the same, and I can foresee plenty of interaction and involvement at the executive, strategic level. What I really wanted to write about, though, is how the extra salary is going to be extremely useful...

Before I took this job, I used to make pretty decent money for a guy my age, working at his own pace. My limo company (www.chariotgroup.co.za) is now very established, and has grown very nicely over the years, and I also have income coming in from a part-time accounting contract with a nightclub. Now, however, I am bringing in a good salary on top of that. Most people would be very happy with just the salary, and it would allow them to live very comfortably as well as save for their future. As my expenses are very low (I still live at home, and am quite careful with my spending) I have always been able to live comfortably up until now, and still save up for new business investments, as well as my future. Now however, I can kick my saving and investing into hyper-drive! Here's my plan...

Where most people in my position would immediately go out and upgrade their cars, pay for expensive holidays, buy a bigger place etc., I am going to continue to live as frugally as I did before. I might treat myself here and there, but nothing crazy. My main goal now is as follows: By my 30th birthday (I've only recently turned 25), I want a million bucks in a liquid investment. This can then be used for anything, but at the moment my plan would be to buy an annuity of sorts, which will pay out monthly for the rest of my life. Obviously it's subject to a number of factors, but as a general guide, a million bucks would be able to get me close to ten grand a month for pretty much forever. Once I'm thirty, I'd then be able to use that monthly income for whatever I feel like. It could boost the income that I'm earning then, or it could be used to fund a new business, or expand an existing one, or I could decide to not work at all and live off it (albeit frugally). The point is that it would be completely passive income, and it would come into my account every month, pretty much no matter what. The beauty of it is that I will still be plenty young enough to enjoy the extra spending money or free time, whichever way I choose to go.

I've calculated that, with a conservative return of roughy 10% a year, I need to put away 12500 bucks a month to reach my goal. For now, I'm gonna go for it. The worst that could happen is that I change my mind a year or two from now, and I have a nice nest-egg to play with. This twelve and a half grand won't change my living standards too much either. I can still go out for beers with the boys, buy myself lunch when I feel like it, fly up to visit my girlfriend once a month, and do all the little things that make life worth living. In fact, I should still be able to upgrade my car if I feel like it (although I probably won't for a while - I just love her too much)! Some might say that I've fallen with my ass in the butter, but to them I say that I've worked for absolutely everything I have, and never take anything for granted. It might seem easy now, but I put in the leg- and grunt-work when I needed to, whether it was in building my businesses or getting my qualifications. And let me also remind you that I now have to balance a demanding full-time job with running a successful business - so I don't expect it to always be smooth sailing...

I will let you all know how the 'plan' unfolds, so watch this space, but I can tell you right now that it's gonna be interesting. I'm pretty damn excited, so here goes nothing!