In the following video Mark Tilbury talks about how he was able to retire in 7 years. (But it isn’t easy). He explains that the word “retirement” should be replaced with the word, “freedom”. Once you reach the “tipping point” when you have enough money to stop working you have true freedom. But that doesn’t mean the you have to stop working. It simply means that you can work on the things you truly enjoy.
He explains how he reached that point in his twenties starting with zero dollars. Phase one is determining your “Freedom Figure” i.e. the amount you need to have to be financially free. This number is different for everyone depending on how much you want to have available every year without working. To calculate this figure you can use the “25x” rule of thumb.
The 25X Rule of Thumb
Annual Expected Income : $50,000
Multiply by 25 = $1.25 million
You could then withdraw 4% of this money every year without ever running out of money.
How Can You Get There?
The key is mindset: You need to prioritize building wealth over generating cashflow. By locking your money away in assets that generate wealth.
Lay the Foundation
- Pay Off High Interest Debt
- Emergency Fund
- Develop Great Credit Score
- Reduce Tax Liability
- Develop Multiple Streams of Income
- Create Passive Income Streams
- Stock Market
- Crypto
- Income Producing Real Estate