I’m pretty new in this community of bloggers focused on planing their retirement by a combination of saving agressivly, investing wisely and living frugaly.
To start learning about what others are doing, I’m passing a lot of time reading their stories and one of them got my attention. It’s the story of Jason Fieber, a guy that was not born in an elegant manor on east river but on the east side of Detroit Michigan.
Even though he did not attend Harvard or Yale business school he found his way through financial freedom.
He’s still on his path to reach it, but he’s impressive! His goal? Retire at 40 years old after 12 years dedicated at creating a nice stream of passive income.
Here’s his story!
I was born in 1982. I grew up in an impoverished neighborhood on the east side of Detroit, Michigan. My father left my family at a very young age, and after my mother increasingly turned to heavy drug use she gave up control of my three sisters and I when I was 11 years old. Thankfully, my aunt and uncle became our legal guardians and gave us a wonderful home. This was 1993, and that’s when my life really began. (Excerp from www.divdendmantra.com – Jason Fieber)
I like reading stories about people who had a hard time but got the courage to stand up and defeat their fate. I truly believe that someone very motivated can change his future. These people are truly inspiring!
That is what Jason Fieber is doing. In three years, with a modest salary, he’s been able to save 100,000$ by being highly focussed on saving and investing! Saving a 100000$ as fast as possible is not just a psychologic step to cross that makes you feel better, it is also very important for the magic of compounded interest to start delivering it’s true power as soon as possible. Because the most important ingredient for compounded interest’s magic to deliver it’s full potential is TIME!
How is he doing it?
In fact it’s very simple but that is why it’s hard to replicate! I know, it’s paradoxal but see by yourself.
First, you have to cut spendings to their minimum. Why? Because it’s a lot easier to cut spendings than to increase your net salary. If you can do both it’s better! But you’ll see that after 50000$ or 60000$ per year, it’s getting a lot harder to find a better paying job. Competition is fierce and you’ll have to fight a lot.
Second, save agressivly. Jason is saving more than 50% of his income on every paycheck. Sometimes, he’s saving a lot more!
For sure he had to change his way of living and adopt quite a frugal lifestyle. But, he also took the decision to move to Florida where the weather was more clement and where he could pass more time outside than inside a house. Bigger houses become less of a necessity then. Owning a car becomes also less relevant when it’s always hot and sunny outside!
Third, saving is great but if you let the money sit in your bank account, it won’t get you anywhere. So you also have to invest with intelligence.
Jason is investing in dividend growth stocks. That’s what he likes. But you could invest in real estate or find other investments that could reward you with passive income. I, like Jason, prefer investing in stocks.
Simple? Yes! Easy? No!
Would you be able to save 50% or even 75% of your net income to fund your freedom dreams?
Well you’ll have to take the time to think about your life and decide what’s most important for you.
I myself don’t fully realize in a 9 to 5 job whatever the job is and I tried a lot… I could certainly quit it, but I don’t see any other jobs that would interest me enough to accept the huge drop in salary that I would probably get. I also tried to be self-employed and found it rewarding but too much time consuming.
I’d prefer to be retired and own my whole time to do whatever I want whenever I want. So, being free is most important for me than working because I truly reach my full potential in my hobbies. If I would be millionnaire tomorrow, I wouldn’t pass all my days fooling around or watching TV. I’m a very creative person and I would pass my time creating, learning new things, discovering new places! Ahhhh! This is my dream. And that is what motivates me to save a lot on every paycheck.
But I don’t save as much as Jason do. Because I know I could die tomorrow and I don’t want to deprive myself from having fun along the way. I know, fun doesn’t have to cost money. But, unfortunately, some of my passions cost money… a lot of it… I love taking the plane to go to paradise… And even if I want to be free, I can’t resign myself in being a true minimalist!
Fortunately enough, I’ve proven that I’m pretty good at increasing my income. It is in fact easier for me to increase my income than to cut my spendings. I try do do both…
Jason is on the good track to reach his goal. And I wish him all the best!
If you are interested in visiting his blog you can follow this link :
And if you want to learn how to invest wisely, then learn with the best : Warren Buffett!
Image courtesy of Markuso / FreeDigitalPhotos.net