There’s a story going around the web that you might have heard about recently. It’s about a self-made millionaire named Steve Adcock who is retiring at the surprisingly young age of 35, and he boasts that he did it by saving 70% of his salary. You are probably wondering if this is possible. Can you save 70% of your income?
There are a few steps that you can take that helped Mr. Adcock to make his fortune. Let’s take a closer look so that you can see what it takes if you want to achieve this kind of success on your own.
It’s hard work, but if you want it, then here’s what you need to do!
Commit to Achieving Financial Freedom
Financial freedom is not something that you are going to achieve with a passive attitude. It would be best if you made a commitment to yourself. You are going to need to do a lot of hard work and give your current lifestyle an almost complete renovation.
In a nutshell, you’re going to have to be 100% committed for this to work, so let’s explore how that’s going to play out practically.
Strive to Earn Additional Income
You’ve got the drive, but you are also going to need to get to work. And we don’t mean just your regular 9 to 5. Adcock already had a pretty good income, but he felt it wasn’t enough, so he went online and made new opportunities to generate extra money here and there.
In his case, he put YouTube videos online to generate cash from sponsors, and he also did a little freelance writing to make some extra scratch. Websites like Freelancer, Guru, and Upwork can help you do this so that you have more base money to use towards your goal of financial freedom.
Make Sure That Your Money Is Working for You
A standard savings account really won’t net you much in interest, but a high-yield savings account is a different story. You can also take advantage of low-risk options such as CDs and even invest a small portion of your extra money into things like index funds, where your savings will have a chance at more impressive growth.
Money is power, but it must be circulated and grown to be of any use to you.
Consider a single appointment with a financial advisor, and you can plan for what to do with your savings and that extra cash you earn from your side gigs. You’ll be surprised when you see how fast it can grow with a bit of help from a pro.
Use Automated Payments, Deposits and Investments
Automate whenever you can. Setting up automatic bill payments ensures that your necessities and your credit card debts are paid reliably on time.
Setting up a percentage of your income to automatically go to savings, retirement, and investment accounts is also crucial – if you try to do it yourself, it’s easy to decide that waiting is okay.
Avoid this temptation by automating everything that you can to put as much of your focus as possible to generate extra income at every turn while still ensuring that savings, investments, and retirement are automatically taken care of each billing cycle.
Budget and Track Where All of Your Money Goes
This is the hardest part for most of us, and there is no way around it. You need to know where every single penny of your money is going. An accountant can help if you are not mathematically inclined. The best way to get an overview of your spending is to purchase an audit of your monthly expenses.
Once you know exactly where all your money is going, you can set up a budget that focuses on what you need and a modest budget for what you want.
Remember, this is not an overnight thing; you are playing the ‘long game’. So, setting up and sticking to a budget to know exactly where your money is going will be critical for your success. Nobody said it would be easy, but if you are genuinely committed, you need to make a budget to reach your goals and stick to them religiously!
You’ve Got a Map of the Road Now – Where Will You Go?
Today we’ve talked about whether you can save 70% of your income, and as you can see, it’s doable, but like anything else worthwhile in life, it’s going to take discipline and practice.
- Once committed, the road is uphill but clear for you.
- Make as much extra income as possible and make sure that every bit of extra money is carefully put where it’s going to grow the most. Automate this process as much as possible and consider a financial advisor to ensure that your options are lucrative but as low-risk as feasible.
- Finally, make a budget and stick to it.
It’s rough at first, but once it becomes a habit, it will carry you to success. Just remember that you can have a few extra ‘shiny’ trinkets now, or you can put in the work and enjoy an early retirement that lasts well into your new and financially free future!
It’s all up to you.
Image by Tory Byrne via freeimages.com