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Proven Advice On How To Build Wealth And Reach Financial Independence - Financially Well Off
Financially Well Off

Proven Advice On How To Build Wealth And Reach Financial Independence

Grant went from $2.26 to become a Millennial Millionnaire within 5 years. He's a successful entrepreneur blogging at MillennialMoney and author of Financial Freedom. He's has been featured in Forbes, Huffington Post, and many other popular sites. 

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3 Key Takeaways

  1. Focus on making progress towards the next in your goal. This will prevent you from getting overwhelmed with your large goals.
  2. Don't focus on which side-hustles other people are doing. Instead, focus on what you enjoy doing and what people will pay for.

Podcast Interview Notes:

1. How would you recommend someone to find their freedom number?

The freedom number is really important.

Most people are going to need probably at least $1 million in order to live off for the rest of their life, and I’d started with only $2.26. When I’d set the goal to save $1 million I was like, “This is insane. I’m never going to do it,” you know? 

I had something called The Double Up Strategy that whenever I saved a certain amount of money, the next goal was simply just to double up the money. When I’d saved my first $5000, my next goal was to save $10,000 and then $20,00. This goal kept me focused on the near term horizon and getting to that next goal–as opposed to getting to the $1 million. 

The typical advice is that you need 25 times your expected annual expenses in the future. Say you spend $50,000 a year as I do, you’d need $1.25 million saved in order to live off that money for the rest of your life–withdrawing between three and four percent of your money. I think that sells a level of precision that’s unrealistic.

If I’d just focused on my $1 million goal, I would’ve never reached it. The double up strategy really worked for me. But, there are a number of different strategies that might work for someone else.

2. How do you know which side hustle to start working with?

For me, it really came naturally by looking at what I enjoy doing and can I make money doing it?

By far, my most profitable side hustle was buying and selling domain names. It’s something I’ve always loved. Domains are really the real estate of the internet. 

I strongly encourage people to not just look at what everyone else is doing. Think hard about what do you enjoy doing and can you make money with.

A simple exercise is just to take out a piece of paper and put two columns. In one column, list the things that you like doing, things like your hobbies. In the other column, list your skills, and see where you can find an overlap between those two.

For example, if you like rock climbing and are a graphic designer, you could do graphic design for a climbing company. 

3. What’s worthwhile investment you’ve made in your life?

One of the biggest investments that I’ve made was taking calculated risks in all areas of my life.

At one point I was stuck in a cubicle job that I hated and got laid off twice. It took me a long time to find the right fit. I think a lot of people are two or three steps away from a life that they’d really love–they just need to figure out what those two or three steps are and then actually take them.

In reality, you can probably leave your job and take the risk to go do something else. If things don’t work out you can always find another job. 

Life’s too short to have a job that you don’t like. Yes, it’s hard to develop new skills, and sometimes it’s hard to find a new job. But it’s your time–why not make the most of it?

4. Are there any book(s) you’d give as a gift to others and why?

I recommend Your Money or Your Life. I’m a huge fan of that book–Vicki Robin wrote my foreword.

My book builds on some of the ideas that are set forth in that book. Another book I really love is Rework. This book completely changed the way that I think about working.

Money Round

How would you spend $1000?

Invest it, 100%. Invest it in fractional shares of Amazon stock.

What advice would you give to people who are currently struggling with their finances and feeling hopeless?

Take a deep breath.

Go out, spend some time in nature. Get some perspective. Realize that nothing’s forever.

I think that’s a big thing. When we’re really stressed, we’re just in a compression point. When you realize that nothing’s forever,  you have the power to make a change in your life.

It might take a short period of time or a lot t of time. But, you might have to be patient. 

What does money mean to you?

Money’s freedom.

Money is an opportunity–it’s time. It gives us the ability to impact the world. With money, we can make our dreams become reality.

Whether it’s giving money away to the people we love or taking trips. Money is really a human invention. It’s gotten bogged down over time with so much negative emotion.

There are so many things that we embed with money, so much power that we give it. It’s important to realize that all it is is a human invention. It’s a concept and something that you can control instead of it controlling you.

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About the Author Chris

Chris writes personal finance and productivity articles for software companies. He gets fresh ideas through continuously investing in himself and interviewing successful entrepreneurs.

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