How to Achieve Financial Freedom - Business Insider

Financial freedom means different things to different people, but it's typically defined as having the financial resources to live the life ... 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H M S Inthenews Closeicon Twocrossedlinesthatforman'X'.Itindicatesawaytocloseaninteraction,ordismissanotification. Chevronicon Itindicatesanexpandablesectionormenu,orsometimesprevious/nextnavigationoptions. HOMEPAGE 0 Newsletters Accounticon Aniconintheshapeofaperson'sheadandshoulders.Itoftenindicatesauserprofile. Login Subscribe Subscribe Home Chevronicon Itindicatesanexpandablesectionormenu,orsometimesprevious/nextnavigationoptions. Markets Howtoachievefinancialfreedom,accordingto6couplesandindividualsunder40who'vedoneit BusinessInsider 2022-02-17T17:47:28Z SaveArticleIcon Abookmark FacebookIcon TheletterF. Emailicon Anenvelope.Itindicatestheabilitytosendanemail. Shareicon Ancurvedarrowpointingright. Twittericon Astylizedbirdwithanopenmouth,tweeting. Twitter LinkedInicon Theword"in". LinkedIn Fliboardicon AstylizedletterF. Flipboard Linkicon Animageofachainlink.Itsymobilizesawebsitelinkurl. CopyLink Downloadtheapp YuliaReznikov/GettyImages Formanypeople,financialfreedommeansbeingabletoretireearlyandworkonlybychoice. Severalpeoplewhohaveachievedittoldusthestepstheytookandinvestmentstheymade. Wecompiledalistof ourstorieswithexpertadviceforbecomingfinanciallyfree. Gettheinsidescooponwhattradersaretalkingabout—delivereddailytoyourinbox. Loading Somethingisloading. Emailaddress Byclicking‘Signup’,youagreetoreceivemarketingemailsfromInsider aswellasotherpartneroffersandacceptour TermsofServiceand PrivacyPolicy. Financialfreedommeansdifferentthingstodifferentpeople,butit'stypicallydefinedashavingthefinancialresourcestolivethelifeyouwanttolivewithoutworryingaboutmoney. Formany,itmeansretiringearlyandnotworkingunlessyouwanttowork. Insiderspoketoindividualsandcoupleswhohavesavedenoughmoneytobeabletoquitorscalebackontheirdayjobsanddesignthelivestheytrulywanttolive.Insiderverifiedalltheirclaimsaboutincomeandpropertyownershipwithdocumentationtheyprovided.We'vecompiledtheirstoriesbelow. PropertyinvestorToddBaldwinlefthis9-to-5topursuerealestatefull-timeandnowearnsover$1millionayear.He'sontracktohitanetworthof$20millionbeforeage35andhas'enoughmoneythatIcouldretiretomorrowandneverhavetoworkagainadayinmylife.'  Seattle-basedrealestateinvestorToddBaldwin. CourtesyofToddBaldwin In2021,ToddBaldwinearnedmorethan$1.5millionfrompropertysales,awholesaledeal,andrentalincome. Hebelievesthatrealestateisthemosttried-and-truewaytobuildwealth,buthealsoinvestsinthestockmarket. Ifyouwanttoachievefinancialfreedomandretireearly,putinthehours,headvised.Forthemajorityofhis20s,"Ijusthustled,"hesaid."Ididn'tparty.Ididn'tgoonvacation.Ididn'tevenreallyseemyfriends.ButbythetimeIwas25,Ihada networth of$1.2million.…NowI'm29,I'veleftmy9-to-5,andIhaveenoughmoneythatIcouldretiretomorrowandneverhavetoworkagainadayinmylife.Takeasmallchunkofyearsandblitz.That'sthewayIdidit." BrennanSchlagbaumpaidoffsix-figuresindebt,partlythankstoafinancecoachingbusinesshestartedontheside.Nowheearnsupto$28,000amonthfromthebusiness,enoughtoquithisCPAjobandbeastay-at-homedad,andplanstobeamillionaireby31.   Cincinnati-basedcoupleBrennanandErinSchlagbaum. CourtesyofBrennanandErinSchlagbaum BrennanSchlagbaum'sfinancecoachingcompanyBudgetdog,whichstartedasanInstagramaccountthatgaveadvicefromadog'sperspective,broughtinenoughsideincometohelphimandhiswifeErinpayoffa$233,700mortgageand$38,000worthofstudentdebtinjustfiveyears.Eventually,hisBudgetdogearningssurpassedwhathewasmakingasafull-timeaccountant—hemakesupto$28,000amonth,accordingtoincomestatementsheprovidedInsider—andhequithisCPAjobinAugust2021tofocusonhiscompany.Nowthathe'shisownboss,hecansethisownscheduleandstayathomewithhisandErin'sfour-montholddaughter. TheirnetworthasofJanuary2021,whichincludestheircash,realestateequity,andinvestments,isabout$780,000.They'reontracktohit$1millionbytheendof2022,whenthey'llbothbe31.  AliandJoshLupo'househacked'tobuytheirfirstpropertyonsocialworkersalaries.They'reontracktofullyretireby40. UpstateNewYork-basedcoupleAliandJoshLupo. CourtesyofAliandJoshLupo Inlate2021,AliLupowasabletoscaledownfromworkingasafull-timeschoolsocialworkertoworkingtwodaysaweek.Doingsocialworkatanelementaryschoolwas"rewardingbutchallenging,"shesaid."Ididnotanticipateleavingfull-timeworksosoonbutthispastyearwithCovidwasthemostphysicallyandemotionallytaxingyearofmycareer."SheandherhusbandJosh,whoarepayingdownsix-figuresindebtandplanningtoretirebefore40,ranthenumbersandrealizedthattheywouldstillbeabletohittheirloftymoneygoalsifshewentpart-time."Itbecameadecisionofmyphysicalandmentalhealthversusapaycheck,"saidAli,whofoundapart-timesocialworkerjobwithfullbenefitsandusestheotherdaysoftheweektoworkonbuildingtheirbrand,TheFICouple."Forus,everythingwedoiswiththeintentionofbetteringourlives."Joshhasbeenself-employedsince2018anddoescareercounselingforworkerswithdisabilitiesanddiversity-and-inclusiontrainingforcompanies.He'salsostartingtoscalebackandworksabout30hoursaweek.  They'vebeenabletodesignthelivestheywanttolivebyfocusingonbothsavingandearning."Agreatteamdoesn'tjustplayoffenseorjustplaydefense,"Joshsaid."Theyplayboth,andtheyoftenknowwhentoprioritizeoneovertheother."RealestateinvestorsMichaelandOliviaZuberownover100unitsandearnover$100,000amonthinrentalincome.Theirrealestateportfolio,whichtheybuiltover20years,allowedthemtoretireintheir40s.  MichaelandOliviaZuberretiredintheir40s,thankstosmartrealestateinvesting. CourtesyofMichaelandOliviaZuber Afterlosingthousandsofdollarsday-trading,MichaelandOliviaZuberturnedtorealestateinvesting.Itstartedasawayforthemtogetbackontrackfinanciallyandrebuildtheirnestegg,butturnedintoapathtofinancialfreedom. TheBayArea-basedcoupleboughttheirfirstpropertyinFresno,Californiain2002.Foryears,theyworkedfull-timeandlivedonhalfoftheirincomeinordertosavemoreandbuymorerealestate.By2015,theywereearningenoughinrentalincomethatOliviacouldquither9-to-5.Michaelfollowedsuitin2018andlefthissoftwarejob. Twodecadesafterbuyingtheirfirstrentalproperty,theZubersownover100unitsandearnover$100,000amonthinrentalincome.Thekeytorealestateinvestingisfocusingontimeinthemarket,saidMichael:"Alotofpeoplewanttotimethemarket,butit'stimeinthemarket.That'showyougetwealthy.Thelongeryouholdanasset,thewealthieryouwillbecome."RealestateinvestorandwholesalerLudomirWanotachievedfinancialfreedomatage28,thankstoamodestlifestyleandrentalincomefromhisrealestateportfolio. Seattle-basedrealestateinvestorandco-founderofEvergreenHousingNetworkLudomirWanot. CourtesyofLudomirWanot Seattle-basedrealestateinvestorandwholesalerLudomirWanothaslearnedthat,"youdon'tneedtocreatealotofwealthforyourselftobefinanciallyfree."Thefirststephetooktowardshittingfinancialfreedomwasunderstandingexactlyhowmuchmoneyheneededtosustainhislifestyle. "IwrotedowneverythingthatIspentonamonthlybasis—rent,healthcare,insurance,transportation,food,clothing,andentertainment—andrealizedthatIonlyneededabout$3,000tocovermyessentiallivingexpenses,"hesaid. Oncehehadthatnumberinmind,hesetthegoalofearning$3,000amonthinpassiveincome.Atthatpoint,whenhispassiveincomecouldcoverhislivingexpensescompletely,he'dconsiderhimselffinanciallyfree."WhenIpickedupmythirdproperty,Ifinallysurpassedthe$3,000mark,"saidWanot,whonowowns13unitsandcontinuestospendabout$3,000amonthonhislivingexpenses."Aslongasyoucanlivewithinyourmeans,andyouunderstandyourbasicnecessities,thenit'sverypossibletocreatefinancialfreedom."27-year-oldsupersaverAveryHeilbronsayshesavesmorethan80%ofhisincomeandhashitfinancialfreedom,thankstoextraincomefromhisrealestateportfolioandYouTubechannel.  AveryHeilbron,27,livesinDurham,NorthCarolina. CourtesyofAveryHeilbron Inadditiontohissalaryfromhisdataanalystjobandtherentalincomethathebringsin,Durham-basedAveryHeilbronearnsmoneyfromsocialmediaplatformslikeYouTubeandTikTokandhispersonalcoachingbusiness.In2021,hegrossed$115,000fromhisvarioussidehustles. Hissidemoneyhelpshimkeep80%ormoreofhisincomeeverymonth,hesaid.Hebelievesthatfindingwaystocutbackonmajorexpenses—likehousingandtransportation—ismuchmoreeffectivethanobsessingoverhowmuchyouspendonthelittlethings,likecoffee. Ingeneral,he'smorefocusedonearning,though."Moneywillmakemoremoney,"saidHeilbron,whosetanincomegoalofearning$50,000permonthbythetimehe's30."Ifyoucanfindwaystoearnmore,whetherthat'sswitchingyourjoborgettingapromotionordoingasidehustle,it'sgoingtomakethingsalotsimpler." SignupfornotificationsfromInsider!Stayuptodatewithwhatyouwanttoknow. Subscribetopushnotifications Dealicon Aniconintheshapeofalightningbolt. Keepreading NOWWATCH: More: Investing FinancialFreedom FinancialIndependence FinancialIndependenceretireearly Earlyretiree EarlyRetirees Wealth Saving Fire Chevronicon Itindicatesanexpandablesectionormenu,orsometimesprevious/nextnavigationoptions. Closeicon Twocrossedlinesthatforman'X'.Itindicatesawaytocloseaninteraction,ordismissanotification. RecommendedVideo