How’s it going everybody, this is beat the bush today, I’m gonna talk about the secret to retiring early. Now here’s a graph of my net worth and I’ve omitted the actual numbers for obvious reasons: I’m showing you this not to show off or anything, but rather so that you would believe what I’m saying. I’ve gotten to a certain point and I’m looking back and trying to analyze what actually helped me get there. What were the most important things that help me increase my net worth so much so that I could retire early now.
.. Now this graph is something I produce every single month for the past nine years. If you look at the whole thing, you would not realize when I actually quit my job. In fact I quit about nine months ago, and you look at the slope. It actually increased a little bit since I quit now. Some people have said before, since I work in engineering, wouldn’t I make more if I just stayed at my job, this is living proof that it didn’t matter too much. Maybe I would have made more. I don’t know, but do you realize that during these nine months I took nine weeks worth of vacation, I went to Hong Kong Tokyo. I took a week trip to the Disney World. I went on various camping trips. I also went to New York for two weeks. I could not have done all of this without quitting, and all of this time that I spent at various places is immensely valuable to me. I would not trade it for a thing and I’m so glad I actually quit and actually went on all these trips. Looking back about four years ago, I looked at my net worth and I’m like, oh my gosh, I cannot believe, is this high. I hope it continues, but I mean at the point that it was already. I was a static so enough about myself and me proving to you that, yes, I am in this position now I want to concentrate on how you can do the same. I’ve grouped it into three separate categories at which you can increase your networks just as much so that you can retire early now for the majority of middle income class people, you don’t necessarily have to spend all your income for your livelihood. You can essentially spend a lot less and save a lot more. If you look at a typical middle-class household, you’re, gonna see a lot of stuff everywhere. People buy a lot of things that they do not need the more stuff that you accumulate and the more stuff that you just have sit around. Those things are consuming your resources, they’re depreciating every single minute there.
So it goes to show that if you become sort of like a minimus, you don’t have to go all crazy and stuff. You just buy what you need. Keep everything that you use a lot and sell off everything else that you do not use all of this stuff that you don’t need! You can sell right away. It’s gonna increase your net worth immediately going forward. If you keep at this lifestyle, you’re gonna save even more because you’re, not gonna, lose any frictional cost. When you buy the stuff and then sell it again, so it becomes a situation where you’re spending very little and yet you’re bringing a lot in when this money comes in. You can essentially make it work for you, you can invest it. You can buy things that would help you increase profits. You can invest in yourself, which will in turn, allow you to earn more money. Now. I mentioned this whole idea of minimizing depreciating assets before many people in the comment section just sort of blows it off and go. Oh yeah. You know if I saw all my stuff, it’s not gonna earn me that much it’s just pennies. This is what sort of counterintuitive, because when you look at this, if you just look at on the surface, yes, it’s not all that much money. Maybe if you sell your xbox or sell your TV at the end, you might only get a few hundred dollars. A thousand dollars two thousand dollars, but it’s the mindset of going forward and not spending all this money on the appreciating as it’s gonna add up over time. If you look at my network chart, it’s never been at this slope before current slope is the highest. It’s ever been when I first started doing this. I saw very little effect, but I just kept at it for many many years I would have to say it’s gonna start really really slow at first, but it’s the mentality, the change of mentality that matters for the first five six years, you’re gonna see It go very, very slow, but then it’s gonna pick up the pace more and more after that. So I just have to reiterate to not discount this, not obtaining so much depreciating assets and also selling off the stuff that you don’t use. People look at this and just brush it off and say: oh I’m not giving them the secrets. This is just a waste of time. in fact, I think this is the most important thing that you can do in increasing your net worth. The next one, which is also pretty important, is to not pay any interest to anyone. You can have car loans.
Student loans, mortgage loans, personal loans, credit card fees, bank fees, all these things are fees that you’re paying another person. This interest and fees that you’re paying everyone else is essentially burn cash. If you are not paying those people, this interest or these fees. Where does this money go? It goes back into your network, so sometimes yes, you may have a really low interest rate, or maybe you have another thing that you want to do with it with this loan. Perhaps you can earn a better percentage of it by investing it instead or whatnot, but again you want to pay as little interest as possible. For example, when I bought my car, I bought it at 0% interest. I paid it off within six months, so I paid zero percent interest on my car in total over the whole life of the car student loan interest. I remember paying an aggregate of many many thousands of dollars. When I look back at this, I could have paid it off and not paid all that interest. So, looking back, I would tell myself you know what it’s gonna hurt paying off your loan early, because it’s gonna be a large chunk of money that you no longer have. You have to essentially pay it off. You owe that money, but if you keep on owing it you’re going to be paying interest on it. So if I were to recommend to myself what to do you know nine years ago, I would have told myself to try to pay off that student loan earlier. The third thing you can do, which is a bit harder, is to maximize income. Yes, you can go to work, you can work harder, get a raise, you can do side, hustles or maybe start your own business. Try to increase your income, but I personally feel like this. Third item is a lot harder than the first item, this first item: when you save money by not buying a whole bunch of stuff that you don’t need you’re saving in two different ways here. The first way is you: don’t waste money right off the bat that money that you could have bought? That item goes into your network instead. The second way that you’re saving is that you lower your burn rate. This is a continuous thing and if you turn this into a habit, it’s going to be a sustained increase over your life. So if you get in a habit of not buying the latest phone you’re, essentially gonna save yourself couple hundred dollars every single year. Well, you’re gonna be able to do this every single year afterwards For me, I don’t pay off cell phone plan right now, so every single year for the past three four years already, I haven’t been paying a cellphone plan.
So, every single year it’s about a thousand dollars that I’m putting in my pocket instead So there are a lot of these little tricks that you can employ things that you have to learn in order to adapt, and once you learn how to do these money, saving techniques, every single one that you employ, it has a double effect First, you’re not spending it The second is, you have a continual, reduce in burn rate So what should you do going forward? Minimize depreciating assets, pay no interest to other people, including banks and third maximize income, every single financial transaction that you ever take You should think about what it comes out to be in terms of your net worth What is the bottom line? How much is it gonna cost you over the life of the loan? If you buy a $20,000 car under a certain amount of interest rate, how much are you gonna pay at the end? Maybe it might be $30,000 $40,000 If you consider the total amount that you’re gonna pay, including interest, you’re gonna change your mind a little bit so in the end, every single financial transaction that you take, consider your net worth as your bottom line I hope this helps You increase your net worth It’s not going to be an immediate thing once you implement these changes, it’s gonna take years just have patience and keep on going don’t like this audiobook or to surface, you can cancel it before this substitution expire So you can still keep this audiobook and help it enough in this channel as always, I forgot to mention in my network, chart that when I quit my job, I actually did not obtain a new job so it’s kind of like infinite vacation, although I still have to work a little bit This is why I created my honey badger Teach every weight, has a honey badger and it says: infinite Vacation on it, why a honey badger, because it’s tough it does what it wants to it, does not care what other people think So you can essentially not buy those iPhones, don’t care what people think and in the end, you’re gonna be able to obtain your infinite occation if you’re interested in this t-shirt – and this is completely optional by the way, if you don’t buy this t-shirt, I’m not Gon na be offended or anything