Firstly, this might come across as direct, but it needs to be your top priority.
Here’s what it means:
- Take Action and Invest Now
There’s never a perfect moment to start investing.
Some of the greatest fortunes were built during the Great Depression.
More recently, the pandemic in 2020 created more new millionaires than in previous periods.
Realistically, you should consider aggressively investing a significant portion of your income or launching your own business in an area where you have expertise.
Having a mentor or advisor can help you navigate your unique circumstances.
For instance, if you’re an expat living in a high-income, low-tax location, your path to financial freedom within a decade will differ from that of an entrepreneurial individual.
- Avoid Lifestyle Creep
Don’t increase your spending just because your income rises.
If you keep scaling your spending with your income, you won’t have the freedom to make meaningful choices.
This doesn’t mean becoming extremely frugal.
You can relax eventually.
I spent time growing my business and building up my investment portfolio.
There were challenging moments.
Now, I can easily fly business or first class whenever I choose and live comfortably, within reason.
However, the key is not to get ahead of yourself.
I’ve witnessed many high earners end up with little wealth.
It’s better to “fix the roof when the sun is shining” by generating cash flow and setting yourself up for the future.