The Book That Let Me Reach Financial Independence (20 Lessons) #Finance

these are 20 lessons from the book set for life that will help you save your first 25,000 invest to your next 100,000 and then eventually reach Financial Independence Way before you’re 65 these worked for the author they worked for me and they can work for you too the first 25,000 is

the hardest and I can say from experience that is absolutely true so your number one goal when you’re trying to reach Financial Independence is building up your first $255,000 we’re going to call the financial Runway and it all starts with frugal living and that’s because a dollar

saved is actually like a$1 33 earned because you know Taxes so while earning more money is obviously super important at the beginning the most efficient thing that you can do is to lower your expenses as much as possible well most people might recommend a 10 to 15%

Savings rate Scott trench recommends a 50 to 75% Savings rate which is actually what I did myself at the beginning this involves taking care of your big three now your big three are your housing your transportation and then your food in fact most people try to cut

out the fun stuff at the beginning when they’re trying to save money and that’s only about 5% of your budget generally is entertainment so that should actually be the last thing that you think about cutting you shouldn’t be cutting out uh you know your coffee you’re going

out with friends unless it’s to like an extravagant amount if it’s reasonable and you’re really enjoying this stuff it’s okay to keep that in your budget instead look at the huge things that can take hundreds or thousands of dollars every single month so how do you do that

the first way is your vehicle Scott recommends never buying a new car trying to buy a older used car that you can buy for cash because at the end of the day a car gets you from point A to point B my first car was a $5,000 Honda Civic I drove that thing for years I had no monthly payments the

Insurance was cheap the upkeep’s really cheap if you’re in those beginning stages having a car that is not killing you is a complete Game Changer and when it comes to food shopping at a different grocery store meal planning cooking at home and going out to eat a lot

less all of those will help you save more money which at the beginning here is super important but generally your biggest expense is going to be your housing so before we get into what he recommends on you can eliminate that cost entirely in the next step if you’re still at the step of saving

up your first 25,000 then he recommends going extreme that can mean moving back in with your parents getting a roommate even if you don’t really want one learn to diy things and do it yourself if you have to pay somebody $150 to do some basic Plumbing work to replace a toilet to do whatever

if you can learn some of these valuable skills that you’ll have forever and save hundreds or even thousands of dollars in the process over the course of 5 years DIY and a bunch of things can be a huge change in your #1a73e8; text-decoration: none;">Finance work on your Credit score if you’re in the beginning stages working on your Credit score is going to be super helpful because later on you’re going to need that Credit score to actually

invest and completely change your finan so if you have a crappy Credit score right now take it extremely seriously and really work on improving that buy good enough this will end up actually saving you a lot of money so this is that in between space of buying things that are

extremely cheap that you’re going to have to fix in a few years cuz they’re cheap and buying the most expensive version of something because it’s the best instead try to find this Middle Ground where you’re evaluating every purchase that you make with good enough for me that

meant I never bought the newest iPhone or the newest piece of tech and instead I found something in the middle which was like a used Google pixel that I would buy on Amazon refurbished for like 200 bucks it did almost exactly all the same things the thousand phones did um but it was way cheaper and

it made zero difference in my life use higher deductible Insurance he recommends doing this because you can control some things obviously not everything but you can control driving safer eating healthier not damaging your electronics or whatever you get Insurance

on and trying to have those lowest monthly expenses possible because in the end for most people that ends up saving them a decent amount of money all right let’s talk about the latter to 25,000 so it starts off with building up a 1 to $2,000 emergency fund you generally want to keep that in a

high interest Savings account like Sofi where I keep mine there’s a link below then you’re going to want to pay off any High interest Consumer Debt this Credit card Debt uh if you have high Interest

Rates on your student Loans or your car paying all of that off and then eventually bilding up to save your first $10,000 all the way up to your first $25,000 which will buy you your initial chunk of Freedom this first 25,000 could take anywhere from a year to like 5 years

the more extreme you’re willing to go with moving with downgrading your car with all of these things the faster you will get there and the faster you get there the faster you get to 100,000 and then eventually to freedom I think this is a point where you really need to be investing into

yourself it was because I read this book and like 50 other ones that I was able to make a lot of the wiser decisions that I ended up making in hindsight and not continue to slap my head against the wall making bad decisions and it was because I took like free mentorship from these books um and and

I’d highly recommend that you do the same thing tool I use to do that right now is called short form it’s like a book summary app so you can read a bunch of different books but not have to like spend 8 hours reading the book you can just get the really core ideas kind of like this

CashNews.co and allow that to change your mindset and like brainwash yourself to being the best version of your self which is what I did I did partner with short form as a sponsor of this CashNews.co because I love them I listen to their summaries all the time or I read them it’s one of the

main apps I use on my phone right now I’m listening to the 12we year which is absolutely great they have books in every category you can think of like money and Finance

self-improvement sales psychology all the big books you’ve probably been meaning to read are on there if you want to check them out go to short.com gab or click the link below you can get 20% off your membership which is already way cheaper than buying the amount of books that I read on there

so check them out and let’s move on all right so now you have $25,000 but what the heck do you do with it well this 25k will give you freedom to make a couple decisions that will completely change your text-decoration: none;">Finances the first one is it can give you the freedom to take a step back let’s say you’re earning $50,000 a year right now and you need every one of those dollars in order to survive but now you’ve been making these changes over the past

couple years you’ve lowered your expenses you can actually take an opportunity to step back and maybe earn $30,000 a year or $40,000 a year with the potential to earn much more maybe the first year you earn 35,000 the next year you earn 65,000 the next year you earn $10,000 you literally

would not have that opportunity if you needed every one of the $50,000 in order to survive so at this point you can look for a scalable job you can move across the country you actually give yourself more opportunity to get lucky because you put yourself in this position by being a little more

frugal and not needing every dollar that you have you can actually have the potential to earn a lot more now then there’s the other option which I did my brother did now we both have been able to leave our day jobs and that is to invest into a house hack so a house hack is when you buy a

multi family with 3 and half% down first-time home buyer Loan you live in one unit you rent the other units out and that allows you to live for free and the cool thing about this is once you move out you’ll be able to start making Income off that first one

and you can earn money in three separate ways you earn Cash Flow every single month as long as you did the math correctly you build Equity in the property without actually having to pay for that Equity plus you get to take advantage of appreciation

which has been absolutely crazy over the past 5 years my my rentals have like doubled that’s definitely not sustainable but if you look over the past 100 years Real Estate prices tend to go up obviously there’s a way more to this if you guys want to check out some house

hacking CashNews.cos uh I’ve gone way more in detail in the past now it’s time to shift your focus instead of doing the conventional thing which a lot of people recommend which is building up you know millions of dollars so that you can live off that indefinitely you’re going to

focus on building up monthly Income a really cool tool that I use uh to kind of see how my monthly choices affect the rest of my choices is this app called wisey it shows the importance of lowering your expenses and how if you need less per month you’ll be able to retire much

much sooner it’s what I’ve been using to build my budget and stuff I’ll leave a link below if you want to check it out the idea here is instead of doing the conventional method which is building up enough money that you can withdraw a certain amount and never have that money run

out you want to try to build relatively passive Income that covers your expenses so if you need $5,000 a month to live on you only need to build up $5,000 worth of Income from the side be able to have complete Financial Freedom without ever having a million dollars

in the bank 2 million or 5 million what these other people kind of shoot for so that’s why kind of frugal living is super important for me I kind of followed his strategy of buying my first rental and then a year and a half later I bought my second rental and then about a year later I’m

at my third one right now and that’s allowed me to live for free for like the past five plus years plus make money every month plus build Equity and all these other things and allowed me to be able to step back from a job where I was really capped at and actually invest time

into something um that had a potential to earn more money without actually having to earn that much money because it doesn’t take a lot for us to survive if you don’t want to go the Real Estate route there is starting a business route there’s investing he

recommends just investing in high cost index funds and while a lot of people do think that investing is risky there’s a 100% risk that you’re going to have to work at your job till you’re 65 if you don’t take any of these Extreme Measures so I think you know the the choice

is kind of yours Do you want to build this path to Financial Freedom really sacrifice for a couple years so that you can have freedom in 5 to 10 years or do you just want to chill continue working not really have that freedom but maybe you don’t have to sacrifice like that’s totally

fine it’s a whole different route but for me this is almost the exact strategy that I took I couldn’t be more grateful that I make those sacrifices and I’d highly recommend it if you want to read more text-decoration: none;">Finance books like this check out short form with the link below also YouTube thinks that you will like this CashNews.co right here so you should probably watch it cuz YouTube can’t be wrong it can’t be it’s it’s AI is it AI I don’t know how

they make how do they make that how do they know