Are you ready to build a life that you no longer need a vacation from? My new book 10 Steps to Financial Independence is your guide to achieving the freedom you've always dreamed of. This book lays out a clear and actionable roadmap to reach financial independence, whether you're just starting out or well on your way. From understanding the fundamental concepts of financial freedom to mastering budgeting, investing, and risk management, each chapter offers practical advice and strategies to empower you on your journey. With a touch of humor and real-world examples, this book will equip you with the knowledge and tools to confidently pursue your path to financial independence and enjoy a life of true abundance.

Here’s a summary of the 10 steps:

Step 1: Understanding Financial Independence

Financial independence is the freedom to live life on your own terms, without relying on a traditional job for income. It means having enough savings and investments to cover your living expenses indefinitely. One of the core concepts of financial independence includes setting clear financial goals and calculating your number – either a target amount of money to withdraw or passive income to cover your expenses. Some use the 4% rule (which suggests that you can safely withdraw 4% of your investment portfolio annually in retirement without depleting your principal). By understanding how financial independence works and why it matters, you can begin your journey toward achieving this coveted state of financial freedom.

Step 2: Spend Less Than You Earn (Budgeting & Debt)

Achieving financial independence starts with mastering your finances, and spending less than you earn is non-negotiable. It's important to create and stick to a budget. Learn how to track your spending, identify areas for cost-cutting, prioritize savings, and invest the difference. Eliminate debt early in your journey so you can avoid paying interest and increase investments. By establishing healthy spending habits and managing debt, you'll create a solid foundation for achieving your financial goals.

Step 3: Increase Earnings (The Money-Making Sprint)

While spending less is crucial, you can only cut so much. Increasing your income can be a game-changer on the path to financial independence. Find ways to boost your earnings, such as learning new skills, pursuing promotions, or even changing jobs for better opportunities. Discover the potential of side hustles and real estate investments as sources of extra income. By diversifying your income streams and maximizing your earning potential, you can accelerate your journey to financial freedom and enjoy more financial flexibility.

Step 4: Invest Your Money (How Rich Get Richer)

You can't save your way to wealth – your money needs to find ways to make more money. There are many investment options, including stocks, ETFs, real estate, and dividend stocks. Learn about the benefits and risks of each investment type and how to create a diversified portfolio that suits your goals. Dollar-cost averaging is a strategy that involves investing a set amount regularly, which can help you navigate market fluctuations. Get your money into investments asap.

Step 5: The First $100K (Get There ASAP)

The first $100k is a bitch, but you gotta do it. Compound interest is your special FI power and getting to $100k early in your career will lead to significant growth over time. By focusing on this milestone, you can accelerate your progress toward financial independence and benefit from the long-term effects of compounding. The S&P returned 23% in 2022 returning $230 on $1k and $23,000 on $100k.

Step 6: Use Tax-Advantaged Growth (Retirement Accounts)

Use the benefits of retirement accounts such as 401(k)s, Roth IRAs, Traditional IRAs, and pensions to get decades of tax-free growth and an immediate tax break. Understanding how to effectively use these accounts can significantly enhance your investment growth and provide a substantial boost toward achieving your long-term financial goals. Learn the options available for using these funds before retirement and converting them into a Roth IRA.

Step 7: Use a taxable brokerage (Flexible and Unlimited growth)

A taxable brokerage account offers unparalleled flexibility compared to retirement accounts by allowing unlimited contributions and unrestricted access to funds at any time, which is especially beneficial for those who plan to retire early or need liquidity. Learn the setup process, ongoing management, the tax implications of capital gains, and the strategies for minimizing taxes through tactics like tax-loss harvesting. The investment options are nearly endless for building wealth outside of retirement-specific vehicles.

Step 8: Make Money While You Sleep (Passive Income)

Passive income refers to earnings derived from activities in which you are not actively involved on a day-to-day basis. This type of income typically requires some upfront investment of money or time, after which the revenue streams require minimal ongoing effort to maintain. The goal is to create sources of income that can generate money for you without requiring constant labor, allowing you to diversify your income streams beyond traditional employment. Common examples of passive income include rental properties, dividend stocks, income ETFs, royalties, digital products, and more.

Step 9: Secure Your Future (Risk Management)

Risk management is essential for securing your financial future, especially when aiming for financial independence. It involves assessing potential risks to your income and investments and implementing strategies to mitigate these risks. Effective risk management ensures that you are prepared for financial uncertainties, such as market volatility, unexpected personal events, or economic downturns. Techniques can include diversifying investment portfolios, setting up emergency funds, obtaining suitable insurance, and having a solid plan for debt management. By prioritizing risk management, you not only protect your assets but also build a more resilient path toward achieving and maintaining financial independence.

Step 10: Reap the Rewards (Spend Your Wealth)

You've made it to the promised land, now it's time to enjoy your wealth (and make sure it lasts). Spending your wealth in early retirement involves accessing the funds you've worked hard to accumulate and managing them wisely to maintain your desired lifestyle. Techniques such as adhering to the 4% rule for sustainable withdrawals, investing in dividend-paying stocks and income ETFs for a steady income stream, and selling covered calls on your stocks to generate extra cash are explored. Each approach has its pros and cons, and the key is to find the right balance between preserving your wealth and enjoying your financial freedom. By managing your funds prudently, you can make the most of your early retirement years and reap the rewards of your financial independence.

Grab a copy of the full 52-page ebook with more details, actions, and examples on each step.