Top 5 Unique Tips On Financial Freedom
Over the past few weeks, I have reached out to dozens of top bloggers, podcasters, and personal financial reps and asked them to submit their top unconventional tip for young people trying to attain financial freedom and retire early. We received many responses, but we were only looking for the top 5 tips that buck the norm. You can go to any local personal financial representative to hear that standard advice about saving 10% of your income. Here we want to give you new information that you may not have heard of before.
So here they are, our top five picks for unconventional tips for attaining financial freedom at a young age and retiring early.
Money Manifesto
“If you want to live an unconventional life and retire early you should be saving or investing more than half of your income. This requires you to earn as much as possible and spend consciously only on what truly matters to you.”
Money Manifesto blogger Lance used to work for a Fortune 500 Company as a licensed CPA before becoming self employed. He is one of the most genuine bloggers that I have had the pleasure of reading, and he puts his personality into every section of his blog. He even includes a post in his blog the day that he struck out on his own! One of my favorite categories that he writes is called “What Would you Do” where he goes over how he thinks about various financial situations.
Looking forward to the next installment Lance!
Millenial Moola
“Make sure you max out your traditional 401k. The reason is most people working in a corporate job will be in the 25% marginal tax bracket or more. When you take $18,000 off your taxable income , you might completely fall out of this 25% bracket. With the rest of your savings , fill up a Roth IRA then open a taxable brokerage account. When you early retire you should have something between $50 to $150k in your 401k. Now , you roll over this 401k to an IRA, then convert it gradually to a Roth , filling your 15% tax bracket every year. Also, you’re dividend and capital gains tax rate should be 0% during this time. If you need money , you can withdraw from your new Roth IRA mostly penalty free
The key is to take advantage of all the tax deferred retirement vehicles at your disposal. Just because they are meant for traditional retirees doesn’t mean you can’t take advantage of the tax loopholes and use them for your benefit as a radical early retiree.”
Millenial Moola blogger Travis aka “TMONEY” has been retired since the age of 25 after leaving his job as a bond trader for a large investment company. When I first came across TMONEY’s blog I immediately felt a connection with the types of posts he was putting out. Having just turned 26 myself, I felt connected to the millenial focused nature of his posts and appreciated the well researched statistics that were used throughout his articles. Travis is truly committed to this field and lifestyle. In fact, he sent this tip from his mobile phone from down in Nicaragua!
Hoping to go on a hike with you in the future Travis!
The Mad Fientist
“Don’t focus solely on the finish line (i.e. full financial independence) but instead recognize and utilize the power your increasing net worth provides you along the way to make drastic improvements in your life.”
The Mad Fientist runs one of the most informative blogs and podcasts I have found out there. Appropriately named, The Mad Fientist treats his blog like that of a research scientist. His articles are incredibly detailed and well researched, and he never posts fluff pieces. If you see a new article from his site, you know that you are about to learn something incredible useful to your financial journey. I also highly recommend his free Financial Laboratory! He includes free tools for tracking your net worth and financial calculators which are extremely well done.
Thank you for all of the effort that you go to for your readers Mad Fientist!
Stacking Benjamins
“Early retirement is like a Chicago election in the old days. Back then they said, “Vote early and often.” For you, we’ll tweak it a little and say, “Save early and often.” Compound interest is your friend. I know that sounds boring, but the key is to accumulate money that works for you as soon as possible…so you don’t have to.
That’s the basic advice. Here’s the advanced stuff: you can’t retire early if you don’t take risks. You’ll have to decide how you invest. You’ll need to own only a few things, and then you’ll need to become an expert on those things. Examples? Dave Ramsey learned real estate. T. Boone Pickens learned energy. Chris Sacca learned Silicon Valley venture capital. You can’t diversify. Diversification is for the long game. It spreads your risk and makes it difficult for you to make huge sums of money quickly.
…and that’s the horrible reality of being aggressive. You have to become comfortable with the fact that you might not reach your goal. Until you’re over the fear of dying with nothing, you won’t be able to do something so many people dream about but that so few accomplish…which is to shut off the j.o.b. really, really early.
There’s also the other route, by the way. Sell your stuff and minimize your lifestyle. I’m not in love with that approach, though. You can’t shrink your way to greatness.”
Stacking Benjamins is a fantastic Award Winning podcast in the Personal Finance space. Featured in places like U.S. News and World Report and Inc. Magazine, the Stacking Benjamins team is a definite add to your listening schedule. The host, Joe Saul-Sehy, was a financial adviser for 16 years, represented a Fortune 500 company in the media, and has been popping up all over in the financial space. Along with his co-hosts, they release new episodes multiple times a week in a fun and engaging format.
Can’t wait for tomorrow’s Short Stack episode!
Getting Rich Young
“Utilize your advantage of being young to retire early. In order to attain financial freedom you will need to build up your passive income quickly. The two ways of building passive income are by using money and time. Being young, you may not already have the money to buy existing sources of income, but you can use your time to build up brand new sources. Don’t squander the awesome advantage of time that you have. Let it work for you.”
You already know me, Trip, here at Getting Rich Young.I heavily debated putting my own tip into this post, but I truly believe in the information that I’m providing so decided to share what I have learned so far. After writing up this post, I realized that I need an About Me page so that you can learn more about me on a personal level other than what I have already disclosed in my earlier posts. Here’s a few more things that you might not know about me. I’m currently on track to retire 20 years earlier than the typical American and I absolutely love to be out in nature. In fact, my wife and I went on a 2 1/2 week backpacking trip through Zion Utah for our honeymoon. It was epic, and I loved not having to answer a phone call for work the entire time.
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