Currently I have a net worth of over $4 million. How did I do it? I didn’t win the lottery, I didn’t sell a startup, I don’t have a trust fund, and I didn’t marry into wealth. I simply did two things.
- I saved a high percentage of my income every year.
- I invested that savings every year and let compound interest run like magic!
“The harsh truth is that the most important driver in the growth of your assets is how much you save, and saving requires discipline.”
Burton Malkiel from “A Random Walk Down Wall Street”
If you want to retire by 65, financials advisors recommend you save 10-15% of your income each year and invest it into a 401K.
I thought to myself, “I’m not going to wait until I’m 65! I want financial independence as soon as possible!”
If you want to reach financial independence within 10 years, you need to save about 70%-85% of your income each year and invest it. That’s exactly what I did.
From 2013- 2019, I was making about $300,000 a year on average. I only spent about $30,000 each year for my living expenses.
This allowed me to invest about $200,000 each year! (I wish I could have invested even more money but I had to pay about $70,000 in taxes each year.)
You might be thinking, “How can you live on just $30,000 a year?”
I’ll show you how I only spent $30,000 each year and still had a great life living in an expensive city like Boston. The details are right here.
How did I invest my money each year?
I’ll show you how I invested my money right here.