I was able to become a millionaire by the time I was 30! No, I was not born into a trust fund. I started with zero and used simple investment strategies to get to where I am today.
If you’re on TikTok, you may have heard of people investing in stocks (or stunks), crypto, NFT’s, the metaverse, you name it! However, in this lesson, we are going back to the fundamental basics of investing. I want you to think in terms of long-term reward as opposed to a get-rich-quick payout.
The F.I.R.E. Movement
First, I want you to dive into something called the FIRE Movement. FIRE stands for Financial Independence, Retire Early. If you’ve ever been told to save 10 to 15 percent of your income for retirement, you were lied to! Who wants to retire when they are old and not able to do things like they used to?
I will warn you, taking part in this movement comes with a great cost or sacrifice, if you will. Participants don’t just save 10, 30, or 40 percent of their income; they save more!
Last year, I lived in a van tiny home and traveled to the United States with my wife. Because we didn’t have the expenses of a regular home, our cost of living was roughly $1,000 per month. Combined with my high income, I ended up saving around 98% of every dollar that I made!
Now, that might be a bit extreme of an example. The FIRE Movement is all about being frugal. Things like meal prepping instead of going out, not ordering expensive drinks, or only buying clothing and home items you need are all ways to practice frugality. Small sacrifices like these over the period of a decade add up to big savings over time.
When you get a raise or promotion, your instinct is to go out and celebrate! Maybe you spend a little more than usual on a fancy dinner or splurge on a new car. Just because your income increases, doesn’t mean your cost of living should increase too. If anything, you should double down and decrease your cost of living so you can invest more in the future!