What would happen if we were able to teach teenagers financial independence? High school teacher, real estate investor, and net worth millionaire, Dan Sheeks, joins me today as we discuss his newest book, First to a Million: A Teenager’s Guide to Achieving Early Financial Independence. Although written for teenagers, Dan wrote the book for anyone who is getting into the idea of early financial independence and seeking to carve out their path to a good life.

Not every young person is interested in learning and focusing on their financial future – and not every adult is either. But you also don’t have to wait to achieve financial freedom till you’re 65 because you can always start now. Options, options, options!

Here are some power takeaways from today’s conversation:

• What is financial freedom?
• Why many people don’t reach financial independence
• The 4 mechanisms of early financial independence
• The premise behind First to a Million
• About BiggerPockets
• What Dan’s investment portfolio looks like

Episode Highlights:

Achieving Early Financial Independence

Financial freedom is the ability to pay your living expenses with passive income or sustainable asset withdrawal which is a concept where, for instance, if you have a million dollars in an index fund, you can take money out. In other words, financial freedom is the ability to live your life without having to work. 

You don't have to do the "9-5 till you're 65" grind for the next three or four decades because there are other options of doing things differently with your money that allows you to reach early financial independence. If you don't like that option, then don't do it. You can work till you're 65 and there's nothing wrong with that. But there are other options that you should know about so you can at least decide what's best for you.

You could be making a good income but it's about what you do with that money and what's your savings rate. Are you spending 100% of your salary or are you saving 50%? If you can get higher up on that savings rate, and you reinvest that money into index funds, real estate, or some other passive income stream then becoming a millionaire is not difficult. It's simple, but it's not easy because it takes sacrifice, some extra work, planning, and persistence. 

The 4 Mechanisms of Early Financial Independence

1. Spend less. Don't spend as much money as everybody else. Have a nice savings rate.

2. Earn more. Create a side hustle. Get an extra job or start a small little business in your community. Find a way to earn more money. 

3. Save the difference.

4. Invest your savings wisely. Know what you are investing in and understand it. Put your money to work for you as early as possible and let it do its compound effect where it grows over time. 

Resources Mentioned:

www.sheeksfreaks.com 

Bigger Pockets

First to a Million: A Teenager’s Guide to Achieving Early Financial Independence

Defining Decade by Meg Jay

Rich Dad, Poor Dad by Robert Kiyosaki