I want to become financially independent!

ChrizZ

Master Don Juan
Joined
Sep 12, 2006
Messages
2,033
Reaction score
27
Hi guys,

I got the dating part of my life handled, now it´s time to handle the financial part. After I read the book "rich dad poor dad" (I know becoming rich isn´t as easy as described in the book) I developed an inner drive to get as much financial education as possible. In the last few weeks I read quite a few books on investing in the stock market and how to make some cash through the internet. I´m originally from Germany, but I´ll be moving to SoCal soon to go to community college there. I´m planning on studying marketing and sales because I think it´s useful and I´m also really interested in it. My biggest fear and also motivation to improve is not to live a mediocre life and I wanna be wealthy before I turn 28 (I´m 18 right now). By wealthy I mean being able to have a lot of time and living from the interest my bank pays me and keep up a decent lifestyle. I know I have a lot to learn and I don´t know what the business world is really like, yet. However I know I got the drive and somehow I don´t have any doubts that I´ll achieve my goal.

A little background:

I´m 18 and I´m gonna be living in Santa Barbara soon where housing is really expensive. My parents are gonna come up for the rent though. I´ll get about 500$ of cash every month from them. We´re a upper middle class family.

Here is how I wanna get started:

- save as much money as possible

- invest in assets (laptop, car, books, stuff to buy low and sell high)

- get to know as many people as possible (It´s not what you know, it´s who you know)

- write and sell ebooks

- become a German tutor to get some extra cash

- use part of the holidays to get some practical work experience in a business

- try to get a rich gf :)

...okay, that´s all for now. Any criticism or suggestions on what else I could do to get a good foundation for the long path to financial independence?

thx in advance!
 

azanon

Master Don Juan
Joined
Aug 8, 2006
Messages
2,291
Reaction score
41
ChrizZ said:
...okay, that´s all for now. Any criticism or suggestions on what else I could do to get a good foundation for the long path to financial independence?

thx in advance!
This is an area I'm pretty knowledge about so maybe I can give you a few tips.

First, try to read at least a couple more books on the subject; preferably ones not written by the scam artist, Robert Kiyosaki. I suggest "Work Less, Live More". Also, get you a few investment books too; for these I suggest learning how to invest with mutual funds. Books by William Bernstein would be a great choice.

> For financial independance/wealth, its not what you make, rather what you keep. A doc making 300K a year, but who has spent all of his income on non-investment items, has a near net worth of 0 and is one "paycheck" away from being broke. In fact, he is (effectively) broke; its only his job that keeps his head above water.

> Max out all your retirement vehicle options (Roth IRA, and hopefully someday the equilivant of a 401(k).

> If you're looking for Financial independence (FI) by 28, you're either going to have to make (and save) massive amounts of money and/or live very meagerly afterwards should you choose to retire early (RE) by that age. A more realistic goal would be 30s for an absolute minimum, but I'd recommend more 40s or 50s and just stay healthy so you can still have a 30+ year retirement period.

> Usually, one has to choose between being/becoming wealthy or looking wealthy. Only the really wealthy/extremely high income earners can pull off both.

> Its nice to see you recoginze the "value" of time. Time is the precious commodity that a FIRE individual eventually earns.
 

Bible_Belt

Master Don Juan
Joined
Jul 27, 2005
Messages
17,139
Reaction score
5,765
Age
48
Location
midwestern cow field 40
Knowing German sets you apart right away, which is good. You might consider a focus on international business. If you want to make money from your college education, you'll want to get an mba eventually. So you had better get mostly A's so you can get into grad school later in life. At least make sure that door is left open.

invest in assets (laptop, car...

Most people lose money buying depreciating assets like cars and computers. Unless you have special knowledge that lets you do things like buy broken stuff, then fix and resell it, you would do best to just get the minimal car and laptop that you need.
 

ChrizZ

Master Don Juan
Joined
Sep 12, 2006
Messages
2,033
Reaction score
27
First, try to read at least a couple more books on the subject; preferably ones not written by the scam artist, Robert Kiyosaki. I suggest "Work Less, Live More". Also, get you a few investment books too; for these I suggest learning how to invest with mutual funds. Books by William Bernstein would be a great choice.
Okay, I might check those books out.

the books I ordered and that I´m reading so far are:

- The complete idiot's guide to investing

- Investing in stocks for dummies

- The Intelligent Investor by Benjamin Graham

- The E-Code

- "Attractions" guide for creation a side income on ebay

- some German books on investing

btw. I´m also using a stock simulator which is really good to help me get some experience and I also wanna get David Deangelos marketing book when it comes out.

...do you guys recommend any other books that teach you how you can make money online?
 
Top