Steve Adcock was a former software developer who saved 70% of his six-figure income and retired at the age of 35. When he quit his job in 2016 he had a net savings of $1 million in his account.
In one of his CNBC story he mentions that it is not easy but you don’t need to be a money genius to achieve this. He wrote about six wealth principles that he thought everyone should follow.
“It’s not how much money you make. It’s how much money you keep.”
― Robert T. Kiyosaki
In this story I am going to point out 3 top tips from him to achieve your financial freedom and live your dream.
1. Know where your money is going
Steve advises us to review our monthly spending at least once in a month. We should know exactly where our each penny is going. This way we can eliminate our debts. Otherwise its impossible to have our financial freedom in our control.
Three simple actions to make a difference in your savings:
- Look at all your bills instead of throwing them away. Because your great financial struggles come from your bills. Every time they make a change in price and tax to rob your money. So make sure to check your bills and understand every number in it.
- Spending comes after saving. Before spending money on luxuries you should make sure you have saved enough.
- Another thing that is eating your money is your monthly subscriptions. Make sure you revise them time to time. Because most of the subscriptions are just useless. Cancel all the subscriptions that you are not using
2. Invest in assets
Steve and his wife Courtney acquired much of their wealth by investing in assets such as stock markets and real estates. You know how assets work. You pay for something and its value increases in a particular amount of time and you will be repaid with the greater amount than what you paid. And he mentions that compound interest makes your assets build exponentially.
You can find plenty of resources online about this. Read them and build your knowledge on assets and liabilities. And the best book you can grab on this topic is Rich Dad Poor Dad .
“Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets, “ said rich dad.”
3. Make financial freedom your top most priority
It is actually not about money it is about a priority. Steve points that he wanted to leave his 9-to-5 and travel the world like many of us want to do. So he made a goal in his late twenties to retire early.
Instead of letting his money just sit there he invested it in multiple assets and saved 70% of it.
He mentions that it was hard at first but he convinced himself by reminding that everything he spends money on were either he didn’t use or need.
So adapt this habit of Steve into your life and save as you can. Because that’s where your future freedom lies. You don’t want to end up with the 9-to-5 for all of your lifetime right?. So make a goal today. And make sure you want it bad enough to keep up with it.
So to recap the Steve’s formula we should focus on three important things: savings, investments and bills. Save much as you can, Find opportunities to invest in appreciating assets and revise your bills time to time.