What’s Poppin’,

This is the Budgeteer Newsletter. This Newsletter teaches you how to build wealth and levels up your travel game, but also makes you want to high-5 the person next to you. Go ahead, do it. I dare you.

Today we are bringing you:

• The Proven 9 Paths To Financial Freedom

Today's edition is brought to you by Refside. Fun referee apparel for refs by refs.

Who doesn't dream of a life where money doesn't control our decisions, and we're free to pursue our wildest dreams? The secret to achieving that coveted state of financial independence is understanding that there's no one-size-fits-all approach. In fact, there are multiple paths to financial security, each with its own unique strategies and considerations. So, grab a cup of coffee and get ready to explore these paths with us!

But before we dive in, let's take a moment to reflect on why financial security is so important.

Picture this:

Peace of Mind: Imagine being free from constant money worries. Financial security brings peace of mind, allowing you to focus on what truly matters - your well-being, relationships, and personal growth.

Pursuing Your Dreams: With financial security, you have the freedom to chase your dreams and passions without being held back by financial constraints. Whether it's starting a business, exploring the world, or supporting causes close to your heart, having a solid financial foundation makes it all possible.

Building a Safety Net: Life can throw curveballs, right? That's where financial security acts as your safety net. It provides a cushion to weather unexpected expenses, emergencies, or even periods of job loss.

Independence and Autonomy: Imagine making choices based on your values and priorities rather than just chasing a paycheck. Financial security grants you the independence and autonomy to live life on your own terms.

Creating a Legacy: Leave a lasting impact! Financial security allows you to build a legacy for yourself and your loved ones. Whether it's through charitable contributions, investments, or educational opportunities, you can shape the future for generations to come.

Now that we've established why financial security matters, let's explore the exciting paths that can lead us there. It's time to find the approach that resonates with you and sets you on the course of financial security.

Ready? Let's dive in!

_{1. Steady Saver:}

Summary: Living below your means and consistently saving and investing can lead to a comfortable retirement between 50 to 60 years old.

The steady-saver approach doesn't require a high income or extreme frugality. It's about consistently saving and investing a portion of your income. You can steadily build wealth over time by choosing a lifestyle that allows you to save and invest every month. This approach is suitable for those aiming for retirement at a traditional age and emphasizes consistency and discipline in financial habits. The earlier you start to save, the more likely you will hit this goal.

Overview of the Steady Saver Approach

- Doesn't require a high income

- Doesn't require extreme frugality

- Requires consistency and discipline in saving and investing

- Great approach for retiring at a traditional age

2. High-Paid Professional:

Summary: While not necessary, a high income can accelerate your path to financial independence if you live within your means and save diligently.

The high-paid professional approach highlights the potential of earning a high income through professions like physicians, attorneys, executives, and other high-paying careers. However, it's important to note that having a high income alone doesn't guarantee financial independence. Maintaining financial discipline, living within your means, and saving a significant portion of your income is crucial. By saving and investing wisely, you can potentially achieve early retirement and build substantial wealth.

Overview of the High-Paid Professional Approach

- High income allows for potential wealth accumulation

- Financial discipline is still required to make the most of the high income

- Early retirement is realistic with an above-average savings rate

3. Entrepreneur:

Summary: Starting a successful business offers the potential for high income and the opportunity to sell the business for a lump sum.

The entrepreneurial approach to financial independence involves starting a business that can provide a high income. Unlike the high-paid professional path, being an entrepreneur offers the advantage of owning a business that can be sold in the future. While it requires hard work, dedication, and dealing with an inconsistent income, a successful business can pave the way for rapid financial independence.

Overview of the Entrepreneurial Approach:

- Possibility for high income with a successful business

- Business can be sold for a lump sum, providing a significant boost to financial independence

- Involves an inconsistent income and is not suitable for everyone

- Early retirement is realistic for those with a successful business

4. Real Estate Investor:

Summary: Investing in real estate, particularly rental properties, can generate cash flow to cover living expenses and build wealth. Although we haven’t touched on it yet, this is our favorite way to hit financial security!

The real estate investor approach involves acquiring and owning properties, particularly rental properties, as a means to generate ongoing cash flow. By carefully selecting properties and managing them effectively, you can accumulate rental income that covers your living expenses and contributes to your wealth. While it requires effort, real estate investing is a proven path many millionaires use.

Overview of the Real Estate Investor Approach

- Proven path used by many millionaires

- Can be done part-time alongside a full-time job

- Rental properties produce cash flow to cover your living expenses

- Property managers can be hired for more passive income

5. Extreme Frugality:

Summary: Minimizing expenses and maintaining a high savings rate allows for rapid investment growth and early retirement.

Extreme frugality involves reducing expenses to the bare minimum and maximizing savings to achieve a high savings rate. You can save a significant percentage of your income by cutting back on non-essential expenses and focusing on a frugal lifestyle. This approach allows for rapid investment growth and the potential for early retirement, even on an average income.

The best blog to read about this is Mr. Money Mustache.

Overview of the Extreme Frugality Approach

- Drastically reducing expenses leads to a high savings rate

- High savings rate allows for rapid investment growth

- Low living expenses require less money in retirement

- Early retirement is possible even with an average income

6. Hustler:

Summary: Adding a side hustle to your main job increases income, savings, and the potential for financial independence.

The hustler approach involves pursuing a side hustle or additional income stream alongside your main job. A side hustle can take various forms and allows you to earn extra money to be saved and invested. This approach increases your overall income, boosts your savings, and accelerates your journey toward financial independence. Plus, a side hustle can continue to provide income even after reaching financial independence.

Overview of the Hustler Approach

- Side hustle increases income and allows for higher savings

- Turns an average income into an above-average income

- Endless options for side hustles based on your skills and interests

- Can continue as a source of income after reaching financial independence

7. Geo Arbitrage:

Summary: Moving to a lower-cost-of-living area can reduce retirement needs and potentially allow for early retirement.

Geo arbitrage involves taking advantage of regional differences in living costs by moving to a lower-cost-of-living area. By relocating to a place where expenses are lower, you can reduce the amount of money needed for retirement. This approach can enable you to retire earlier or live a higher quality of life with the same financial resources.

Overview of the Geo Arbitrage Approach

- Moving to a lower cost of living area reduces the amount needed for retirement

- Can retire earlier by moving to a place with lower expenses

- Can involve a move within or outside of the country

8. Part-Time Worker - Barista Fire:

Summary: Working part-time while having enough savings allows for flexibility and the opportunity to pursue passions.

The part-time worker approach, also known as Barista Fire, involves working part-time while having a sufficient savings cushion. If you can cover your living expenses through part-time work, you gain the flexibility to pursue other interests and passions. This approach allows you to reduce or completely leave a job you dislike and maintain a work-life balance that aligns with your goals.

Overview of the Part Time Worker

- Extremely flexible approach, working part-time for financial independence

- Get paid for doing things you enjoy alongside part-time work

- Opportunity to leave a job you dislike sooner than expected

9. The Laid Back Approach:

Summary: Saving aggressively early on allows for a more relaxed approach to retirement planning.

The laid back approach, also known as coast FIRE, involves saving aggressively early in your career to build a substantial nest egg. By saving a significant amount of money upfront and benefiting from compound interest, you can adopt a more relaxed and flexible approach to retirement planning. This approach allows you to decide how you want to spend your money and accommodates lifestyle changes in the future.

A coaster saves a ton of money early, then is able to coast their way to financial independence. Here are some examples:

• If you had $500K, and did not invest another dollar with an 8% return. In 10 years you would have $1.1 million dollars.

• If you had $250k, and did not invest another dollar with an 8% return. In 20 years you would have $1.165 million dollars.

• If you had $1 million, and did not invest another dollar with an 8% return. In 10 years you would have $2.15 million dollars.

• If you had $750k, and did not invest another dollar with an 8% return. In 10 years you would have $1.7 million dollars.

​Overview of the The Laid Back Approach

- Work hard early, enjoy life later approach to retirement planning

- Allows for decisions on how to spend your money in the future

- Suitable for accommodating lifestyle changes and maintaining financial independence

Financial security is a key component of a fulfilling and worry-free life. By understanding the multiple paths to financial freedom, you can choose the approach that aligns with your goals, values, and aspirations. Whether you opt for steady saving, entrepreneurship, real estate investment, or any other path, the journey toward financial independence begins with taking control of your finances and making. Happy investing!

Nothing in this email is intended to serve as financial advice. Do your own research. Thanks for reading, if you have any questions, comments, suggestions, etc. about the email don’t hesitate to send us a reply.