Financial Independence Step by Step 2017-10-21T11:25:55+00:00

Step by Step Guide to Achieving Financial Independence

Ever since I got started in real estate, I realized I was good at making money. I could easily find a deal, do the project, and make a ton of money on it…

…and I loved to spend that money on nice things, a new truck, etc.

The idea of passive income came to me suddenly one night, but the concept of financial independence was something I developed slowly over the course of a few years. During that time I had to make a lot of hard choices.

  • We traded in my amazing $50,000 truck and got a fuel-efficient car (very sad day for me).
  • We got rid of our leased car because we didn’t really need it.
  • We cut down our entertainment budget and stopped eating out 5 times a week.
  • We paid off student loans and credit cards.

All of these things were difficult to do. I realized though, that financial independence has two parts of the equation. I realized that I didn’t just need passive income, I also needed to make sure that passive income exceeded my expenses.

No matter how much I earned, I could never be “free” if I kept spending more and more. I only had half of the equation which is why I felt like I was spinning my wheels and going nowhere.

“I also needed to make sure that passive income exceeded my expenses”

Looking back, I can see the path I took to get here and I realize that I took a lot of detours.

Back when I got started in real estate I didn’t even realize what I was trying to do or why I was doing it. That’s why I’ve put it into a simple 6-step process that anybody can follow. Hopefully, it will help you chart your course and keep you on track along the way.

The 6-Step Process to Achieve Financial Independence.

  1. Educate yourself. Education is key. You need to relearn a lifetime of bad advice. It’s so easy to want to dive in but without a solid foundation of knowledge, you are taking some big risks.
  2. Make a plan. People are far more likely to succeed with a plan. Please, write down your plan and goals and review them often.
  3. Get your finances in order. You need to get your own ‘financial house’ in order before you can be successful at investing.
  4. Start investing. You need to create your first stream of passive income.
  5. Buy your first investment property. The hardest part is actually getting your first property.
  6. Grow your investments. Grow thoughtfully and in a planned fashion to get to FI the fastest.