Set for Life [Book Review]
I recently read Scott Trench's Set for Life. An amazing book for someone in their twenties and a good one for someone, like me, in their thirties. His main points are that by reducing your biggest expenses, such as rent/mortgage, and having the ability to take risks with your career by having a year's worth of living expenses you can greatly improve your chances of early retirement. He says don't worry too much about your coffees and occasional Happy Hours. Cutting those will help, but you should worry about the big wins first.
One of his main strategies for early Financial Independence is 'house-hacking'. This is where you have a roommate or renter that essentially covers your mortage. When you do this, not only do you reduce your biggest expense, but you gain equity as well. Another tip is to move closer to work and bike there if possible to avoid car maintainence and expenses. Again the benefits are two-fold: save money and, in the case of biking, get some exercise.
This is a must-read for anyone currently in or right out of college.
He also suggests cutting the rest of your expenses so dramatically that you can save 50% of your income. This will end up being a year's worth of 'financial runway' after 1 year. This 'runway' will allow you to live as you currently do without an income stream and the need to keep your job. You can then use this opportunity to search for a job that will potentially payout huge bonuses or commisions.
The book is very to easy read, but it also packed with powerful insight into how to become financially independent at a very young age. Cutting expenses, house-hacking, riding bike, increasing income, and meal planning will put you on the path to success. This is a must-read for anyone currently in or right out of college.