Start with Half

The point of an Engine is to finance your life. Not everything we do makes money, nor should it. Without an Engine, you need an income stream to finance your spending needs. Building an Engine aims to replace your role (completely or partially) as a productive asset. To give you permission to release the filter of “how will this make money” in your decision making. Three things matter. 1) The Real Return (after everyone has fed – tax, costs) 2) The Time you allow your money to grow unmolested (In which the Real Return is reinvested. Reinvestment is the pumping heart of compounding growth.) 3) The Share of your income stream that gets put to work rather than spent. The “5-15-50” method is one target model. Unmolested, I believe well invested Equities put to work for a long period (i.e. 15 years) have a good chance of earning an average 5% real return. 50% (one for me, one for you) is a super aggressive savings rate. But recognises that nothing gets built if everything gets eaten. If an income is sufficient to finance your consumption and investment in this way, and you get the 5% return for 15 years… you will have built an Engine capable of continuing to finance that income stream. Capital to release you.

Start with a Half