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If you’re well along your way to the Dot Com Lifestyle, making the most of your earnings has become a top priority.

Consulting with financial planners is rarely a bad idea, but a fact of life for successful entrepreneurs is their acquired preference for direct involvement in the process.

Success on your own terms — despite all and sundry swirling around you — will do that.

In his best-selling book, Rich Dad, Poor Dad, Robert Kiyosaki popularized the cash flow flow quadrant concept.

Note that the left column involves active income while the right column represents passive income:

Kiyosaki cashflow quadrant

The Dot Com lifestyle exists in the upper right quadrant. It’s a desirable place to be while you’re on your way to the lower right.

Here’s the thing: just as you knew to identify mentors to advise you with your online business, you must be aware that good financial planners will know more about investment strategies and tools than you ever will.

Still, it’s your money and your financial future, and as you’ve become the master of your own fate, it makes sense for you to determine your own set of investment guidelines before going any further.

Here are four tips to keep in mind:

1. Know what you’re doing.

Risk thrives in ignorance. Do your research, and make certain your sources are well-referenced.

In essence, as you do with your online business, it’s better to learn from someone else’s mistakes than it is to repeat them.

Your goal is to trust your own counsel. You need to have the sophistication to filter and use the proposals of the best of your advisors.

This means you’ve got to invest the time, energy and money to master the skill of managing your own net worth.

2. Tune up your tax situation.

Odds are you positioned yourself well to monitor your tax efficiency when you chose your online business structure.

It’s not always a given that placing funds into tax-deferred programs like Individual Retirement Accounts is the best option. Their purpose, of course, is to drop you into a lower tax bracket after retirement.

You might be better served to diversify your tax load.

This site has no relationship with Ameriprise, but the triangle graphic displayed is a fitting segue into the next tip.

3. Have a proven strategy in mind.

Choosing a well-established investment system as your template will give you more predictable results and will help you make more consistent and less emotional decisions.

This financial planning triangle is one of the most reliable:

investment triangle

True wealth is about more than money. It’s about living life on your own terms. That includes security, meaning, and purpose.

Don’t be too conservative. Life has a way of offering surprises, so you’ll want to include a degree of flexibility in your plan. If a market drawdown becomes a logical option, use it as an opportunity to rebalance your portfolio.

4. Have a separate emergency fund in place.

This is a safety valve designed to avoid dipping into your primary investment funds to the point of disrupting their growth.

Ideally, this fund is separate and would cover your expenses for 3-6 months. There are a couple of ways to approach it:

  • Pull out an amount over and above your dedicated investment withdrawal each month, or better yet,
  • Sell something for that exact purpose, such as launching an extra campaign each month until your funding goal is met.

The latter should sharpen your focus on why you’re doing the additional work. By extension, you’ll probably value the fund’s purpose — ie- allowing your investment principal to continue uninterrupted — even more.

The deeper you get into the Dot Com lifestyle, the more you’ll want to enjoy it. These tips will assist you in building a strong base for doing so.

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