If you haven’t listened to the Bigger Pockets Money podcast Episode #53, you should put it at the top of your to-do list (after you read this blog post of course)…and maybe after you listen to Episode #33.
What I love about this podcast is that Scott and Mindy break down an entire year’s worth of knowledge that they gained through interviewing different guests every week for the last year. What they found is that “there’s no secret sauce”. They list seven commonalities that almost every single one of their guests have used to gain financial independence. If you put these into practice, you will dramatically increase your chances to gaining it for yourself.
Track your spending. If you don’t know where your money is going, you can’t make decisions on how you can put your money to work for you. All of the podcast guests make mention of using some type of system to track their money; from QuickBooks, to Excel Spreadsheet, or an App on your phone, there are many different tools that can help you track your spending and maintain a budget.
Self-education. You aren’t going to learn this stuff in school. Turn off the television and start reading books, blogs, discussion forums, and listen to podcasts and audio books in the car, vice the stereo. Here’s a few of my favorite books that will help you gain ground:
Rich Dad Poor Dad Cashflow Quadrant
Money Dates. If you are married, you and your spouse MUST get on the same page with money. Dave Ramsey says there is usually a nerd and a free-spirit in every relationship and they treat money very differently. If you and your significant other can’t be on the same page, you’ll never win. If you are single, you should find an accountability partner that has similar beliefs and goals and use him or her to help keep you on track.
There’s No Secret Sauce. Increase income. Decrease expenses. Increase your saving’s rate. Put your money to work through investment vehicles. That’s it! If you can reduce these four major expenses, you’ll be able to get there a lot faster: Taxes, Housing, Transportation, and Food. These two books will help you with ideas on how to reduce the two largest expenses:
What Your CPA Inst’ Telling You
You can fix your money mistake. Listen to Bigger Pockets Money podcast #33. I had quite a few mistakes. I still make them. But I learn from them and become better for it. You can too!
Work ethic. It’s not hard, but it’s also not easy. It takes Discipline. It takes Grit. It takes laser focus and it doesn’t happen overnight. Stick with it!
Invest in real estate. Yes, the Bigger Pockets Money podcast is probably a little bias, but there is truth in numbers. More millionaires are made through investing in real estate than any other asset class, minus tech startups (which are incredibly risky). And the good news is that you can invest in real estate while serving your country in the military. If you are new at this game, you should check out the Military Real Estate Investing Academy. If you feel like you are ready to buy some property, check out Storehouse 3:10 Ventures for some solid investing options.
That’s it. It’s really not that hard. But it does take a concerted effort and for many it could mean a very large lifestyle change. But it is worth it, I promise.
Start now. Make 2019 your year for gaining financial independence.
Written by Stuart Grazier