Millionaire And Retired At 30 - 4 Questions That Will Lead You To Financial Freedom
He achieved what all of us here are surely looking for, he became a millionaire, invested in various sources of income, and retired. Do you want to feel even more jealous? He made it at age 30!
Grant Sabatier is one of the most popular members of the FIRE Movement (Financial Independence, Retire Early) in the United States, he raised more than 1 million dollars and invested almost 80% of it.
Unlike many "self-made millionaires", he did not come from a wealthy family. He started like you or me, in a horrible apartment, with a shitty car and a job that he hated.
He is currently 36 years old, he lives off the fruits of his labor and keeps busy talking about what the process of achieving financial freedom at a young age is like. However, Grant does not present himself as a money guru or someone who knows the secret formula for success, since such a thing does not exist. He recognizes that he made hundreds of mistakes on his way, now he is in charge of spreading them so that mortals like us don't make them, or at least not all at the same time.
"I was never interested in money for money. My idea was to get it precisely to have financial independence."
That could be the first mistake of many, looking for money just to be money, doing it without a clear objective. The funds are a tool, a bridge between where you are and where you want to get to, it is not the final destination.
To summarize his experience, Sabatier exposes the 4 questions that every entrepreneur must ask himself to know where he will go.
1. How will the money help me reach my goals?
Your goal cannot be money, big mistake. Most stop living the life they want and stop doing the things they love while they make money. It's like running a barefoot marathon to win a pair of shoes.
Money should be the reason you can do what you want, not the obstacle.
Grant confesses that before deciding how to get money, he stopped to think about where he wanted to go, to have a clear vision of what his strategy would be. The idea of money comes later.
Think about the things that make you happy, all or most of those things are free or not really worth too much money to do. Travel, go to the movies, etc. When you have that list think of an amount you need to do all that, you shouldn't need 10 million for that. You can start with reasonable amounts, like $ 1,000.
Start from there.
See your goals as levels, you go up one by one and you consider how to get to the next. You cannot get from the ground floor to the roof of the building without passing the floors in the middle.
2. What am I willing to sacrifice?
Every profit no matter what it is requires something in return. Most of the time we believe that to make a lot of money we have to spend to achieve it, but we do not see the other resources that we put into play in doing so.
You will not always need a monetary investment, but you will always need to spend your time in everything you do and time is our most valuable resource. If you are not clear about how much your time is worth, you will always find yourself losing much more than you earn.
"You can always have more and more money, but you can't get your time back"
You must know how much you are willing to save because it is a fundamental step. You should view every opportunity to save some money as a time of financial freedom that you are buying for the future.
Every time you spend unnecessarily and without discipline, you are wasting time.
However, Sabatier does not recommend that you stop spending money on things you enjoy. You don't have to stop going to the movies, cancel Netflix, or stop going to concerts. The expenses you need to cut come in large amounts, like housing.
3. How can I increase my investments?
"Most of your money should be invested in a stock index"
You shouldn't rely on just one option, even if that option is the largest company in the world, like Apple or Amazon.
If a company starts to go down, it leaves the index, and those that start to go up to the sky, enter the index.
As it is a safer investment than the others, the profitability is not that great, but Sabatier maintains that it is a good alternative anyway.
Not everything depends on investments in the stock market. In fact, it is not Grant's favorite choice for financial independence. He maintains that the best thing you can do is invest in real estate.
He not only talks about buying property but about renting your own house where you live. Something that is known as "house hacking", which consists of renting several rooms in your house to reduce housing costs.
The third and final step Grant recommends is starting your own business. This is almost non-negotiable.
"If you own a business, you control your own time. And if it goes well, you can sell it and make another one."
Risk always exists, he doesn't talk about it as if it's as easy as waving a magic wand. But along the way, even when you fail, you can learn valuable lessons.
In short, Sabatier recommends investing your savings in stocks, property, and business start-ups.
4. How am I developing my skills?
The easiest way to know how much money you can make is through the skills you have. Your skills are like your bargaining chip, the better you are and the more you have, the more things you will have access to.
Therefore, you must constantly work on developing more skills, but not just any, but those that are most valuable and useful.
"You can learn everything on Youtube"
Sabatier recommends learning how to develop websites, create advertising campaigns on Google Adsense, and promote brands. Those basic skills led ñel to open his own business.
Grant lost a lot of money and failed many times before achieving his goal, what set him apart from the rest was the learning and discipline to keep going.
None of the above is revolutionary or ground-breaking, it is just a reminder of the things we have to take into account before we even think about making money and retiring at a young age.
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