How To Retire Before 99% of People (Starting With $0)

simple if you want to retire before everyone else then you need to follow these three steps firstly calculate the real numbers secondly manage the variables and thirdly execute your plan successfully it's really that straightforward but most people don't even get past step one to be honest thirty percent of people have probably clicked off this video probably because retirement sounds too old school for them however you might not actually want to retire early I'll explain why towards the end well that's for the few of you that make it that far step one calculate

the real numbers how much do I need to retire this is one of the most searched questions on the internet and no one seems to be able to give the real answer it's no surprise that lots of people are turning to the internet as the school system has left us in the dark they're only interested in pushing us into the workforce so that Society can exploit us for our time and labor if most people actually knew the answer to how much they need to retire then they'd probably an uproar that's because Millennials and gen z's are reportedly going to have to work longer than any other generation the sad truth is many people are deluded some think they'll enjoy round the world cruises on the back of saving fifty dollars a month others believe they'll need so much money that quitting work is an unrealistic fantasy most people are hurtling towards a harsh reality check without even knowing it it's not their fault as they've been set up to fail retirement was much more achievable in my day however that's why it's so important to calculate the real numbers now so you're at an advantage this is kind of like the first step of any road trip setting the destination on your navigation system without air how are you going to head in the right direction right I'm going to cut through all the confusion online you just need to focus on the role of 300. this rule is so powerful that it allows you to jump forward in time and calculate how much money future you will need to quit your job and still pay the bills it's simple all you have to do is add up your monthly expenses and multiply them by 300. this means if you currently spend one thousand dollars per month then you'll need three hundred thousand dollars saved if you spend fifteen hundred dollars a month this will mean you need four hundred and fifty thousand dollars in your account if you spend three thousand dollars a month you'll require nine hundred thousand dollars and so on you get the idea now I know what you're thinking how much but let's say you do need nine hundred thousand dollars you don't have to save all of that I'll reveal later how you can use the power of compound interest and only have to save around a hundred and ten thousand the rule of three hundred is based on the ability to safely withdraw four percent per year from your savings the idea is that if you put your money in the correct places then it will grow by more than four percent per year allowing you to take from your pot without it running out it's a bit like Hermione's Magic Bag in Harry Potter I know this sounds great but it's very important this is just a rule of thumb and not scientific law like gravity I mean it's pretty impossible to accurately predict the future because there are so many different factors that we can't take into account if anyone tells you otherwise then they're trying to sell you something so yes stock market conditions and inflation could have an impact on your final Freedom figure however still think it's a good idea to use a ruler 300 as a guide and adapt it as you go now you've figured out your destination you can start increasing your odds and get in there which brings me on to step two manage the variables

just as you need to use the steering wheel brakes and accelerator in a car to navigate the roads you need to use these five variables to achieve your retirement goal variable one is of course income I highly suggest that you increase your income as soon as possible this is your accelerator and if you're making more than the average you'll be able to retire before most people in my late teens I had an income problem after leaving school at 16 I just wasn't making enough money to pay my rent and go out with my friends let alone save for retirement so I devised a plan to get a pay rise you see I was working part-time in a radio control model shop earning next to nothing I thought to myself how can I get the owner to pay me more for the same work for the next couple of weeks I work my socks off and I kept track of all the sales I made I remember writing down every detail in a little notepad when I got a chance I sat down and I looked at all my notes and compared them with what the shop had sold in that period one thing became very obvious I was making all the radio controlled helicopter cells because of my expertise in flying them that's when it hit me I was valuable to my boss because without me he couldn't sell any helicopters now I had this information I felt confident I could approach him and ask for a raise I clearly explained my value to the business and asked for the increase in Pay I wanted I remember him staring at me blankly for a couple of seconds I thought I'd offended him until he let out a little Grunt and a nod of his head agreeing to pay me exactly what I'd asked for although this was a long time ago the principle Remains the Same now if you want to increase your income then you need some kind of Leverage to have this you need to become valuable maybe you could learn some high income skills such as sales and marketing or alternatively start some kind of side hustle however it actually doesn't matter how much you earn it's all about how much you save and that brings me on to variable two expenses even if you were accelerating at full speed in a Formula One car if you had a massive parachute attached to your rear wing then you aren't going anywhere fast this is exactly what it's like having a good income with too many expenses look I'm not one of those online people that's going to tell you to stop buying Starbucks and enjoying life I think that's a pretty sad way to live if you like those things this variable is more about cutting out the things you couldn't care less for this is actually the perfect time to come back to the rule of 300. let's say you spend fifteen dollars per month on Netflix if we multiply that by 300 you'll see that you actually need four thousand five hundred dollars saved in your retirement pot to keep watching indefinitely well this is assuming the price doesn't go up which it most certainly will most people have little monthly expenses so they don't really care about us they seem so small but if you apply them to the rule of 300 they're no small expenses actually add up very quickly as well as cutting out little expenses I also highly suggest being smart about the larger ones I'm talking about rent mortgages and car payments these are the biggest silent wealth Killers as they're a huge drain on your finances every single month but there are a few ways to get around them the first is known as house hacking this is when you buy a house and rent out part of it to a roommate in order to cover the mortgage in America you can also buy something called a duplex which is two separate living accommodations in one house allowing you to live in one side of the house and rent out the other the next is rent hacking this is simply renting out a house and then subletting individual rooms to different people to cover all of your costs but before you start doing this make sure to clear it with your landlord the third is car hacking this is when you buy a car that has lost most of its value already drive it around for a couple of years then sell it for almost what you paid for it and repeat the process if you successfully managed to drive down your expenses and still live a great life then you can start thinking about variable three debt a lot of people aren't going to like this one but you need to master debt some people are totally against It While others are way too Reckless I've always been somewhere in between the two extremes it's kind of like the fuel in your car it can be very useful but it can also explode if you're not careful managing debt is crucial for a retirement planning because carrying too much bad debt can eat away at your savings make it difficult to achieve your retirement goals on the other hand using good debt strategically can help you build wealth and increase your income which can lead to an earlier retirement it's important to understand the difference between the two and make smart decisions about when and how to use debt put Simply Good debt is when you borrow money to buy things or make more money in the future like buying a house and renting it out bad debt is when you borrow money to buy things you don't make any money on like using a credit card to buy clothes expensive holidays or a car that you don't need but here's the real kicker in order to get good debt you need to have a good credit score and the best way to do this is to actually own a credit card you can put little expenses on it and pay it off in full at the end of each month this will mean you never pay any interest and build a good score for the future but like I said the only reason to have good debt is to buy assets which brings me on to variable 4 investing is important for retirement because it can allow your money to grow faster than it would if you simply just saved it it's kind of like the Boost pad you go over when playing Mario Karts with the right Investments your money can grow at more than four percent per year which is the amount you can safely withdraw from your savings if you're using the rule of 300 not a financial advisor however I've always invested consistently into the S P 500 which is an index fund that includes the top publicity traded companies in the USA which is historically averaged a return of eight percent per year I mean if you were to invest 200 per month for 45 years which equates to a hundred and eight thousand dollars an average return of eight percent per year then you would have a total of one million fifty four thousand nine hundred and seven dollars that's the power of compound interest but where can you start investing well it's a lot easier than it was back in my day as you can do it all from your phone there are various different apps I'll leave some of the links down below one of my favorites is light year and they are also kindly sponsoring today's video light year is looking to give every European low cost and convenient access to the world stock markets and they're really great at what they do the app is super user friendly making it perfect for both Advanced and novice investors light year is available on mobile and web platforms allowing for a smooth investment process and research the platform has 3 000 stocks and ETFs from the UK us and across Europe including ones that track the S P 500 which I mentioned earlier and there's more on light year you can also earn interest on your uninvested money in three currencies the euro dollar and pound if you're watching this from the UK the Eurozone or Hungary you can download and start using light year today use my code tillbreed and receive a 10 fractional share after making your first investment but let me remind you investing always carries a risk and the value of any investment can decrease as well as increase variable 5 tax the more money you earn the more money the government will try to take off you this is why you really need to use the tax loopholes to your advantage this is kind of like your fuel tank leaking if you don't plug the holes then you'll have nothing left by using tax advantage accounts such as Roth IRAs and 401ks in the USA and Isis in the UK you can reduce the amount taxes you owe on your income and Investments these accounts allow you to invest and avoid paying tax on the money you make but the amount you can put into these accounts is limited every year so I strongly suggest that you fill these up as soon as possible and now you're

ready for step three execute your plan just like you need to address your driving style based on the road conditions and traffic you need to adjust your approach to managing the variables in order to execute your plan successfully put simply the following techniques will help you become a better driver firstly develop an Roi Obsession when I was growing my wealth I was hyper focused on making sure that everything I bought at least made me back the money I spent on it a good example of this nowadays is the MacBook Pro it's a great tool that can allow you to make far more money back than you spend on it however if you just play games on it then you'll have to save all that money up again the hard way think about how you can use everything to make you more money that way you'll never have to start from zero more than once secondly measure your progress make a habit of setting clear money targets every month I remember not only doing this but also sharing them with one of my friends I did this because I wanted him to keep me accountable if I missed a Target it's actually been revealed that this improves your chances of achieving a goal by 65 thirdly stay cash poor a lot of people might not agree with me on this one but I think if you save too much money in a simple bank account then you get too comfortable I know I perform best when I'm on the ropes and have a lot of pressure to succeed by keeping myself cash poor and investing all of my money back into my index funds and businesses I was able to motivate myself to earn more and remain flexible not stuck in my old Comfort Zone in the old ways this concept is also known as paying yourself first as you prioritize your Investments and then pay your expenses which is money going into other people's pockets put simply invest first then full yourself to find the other money you need now for the people that have made it this far here's why you might not want to retire traditional retirement was created to help encourage older people to leave the workforce and make room for younger people however retirement can lead to a loss of purpose and drive and many people find themselves getting ill or losing motivation I discovered this first hand as I had enough money to retire in my late 20s I took a couple of weeks off and was tired to lose the will to live I lost purpose and that's when I started looking into two different options the first I'm calling micro retirement this is a concept where you take a break from work for a short period of time to pursue personal interests and travel with the intention of returning to work afterwards it's different from traditional retirement as it's not a permanent state of not working but rather a way of taking a break from work and returning to it later the idea is to break up the years of work with periods of leisure and Adventure allowing for a more fill in life overall now even though this sounded better it still wasn't for me I feel like wasting my time doing something I didn't want to do that's when I came across the second alternative option lifelong retirement for me retirement means freedom so I don't have to do anything unless I absolutely want to that's why I built business around doing what I like to do day to day if I don't like doing something then I just hire someone else to do it I'm sure some people have already commented if he's actually retired why is he making his YouTube videos the answer is that I genuinely enjoy doing it who wouldn't like filming videos and helping people out whoever said money doesn't make you happy hasn't given enough of it away and I think that's even more true for giving away knowledge if you'd like to know seven passive income ideas you can start right now then watch his next video but don't click on it just yet make sure to subscribe if you want to grow your wealth okay I'll see you over there