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Financial Freedom

Here are some core concepts from the book Financial Freedom: A Proven Path to All the Money You Will Ever Need by Grant Sabatier.

There are 7 Levels of Financial Freedom

  1. Clarity
    • when you figure out where you are and where you want to go
  2. Self-sufficiency
    • when you earn enough money to cover your expenses on your own
  3. Breathing room
    • when you escape living paycheck to paycheck
  4. Stability
    • when you have 6 months of living expenses saved and bad debt repaid
  5. Flexibility
    • when you have at least 2 years of living expenses invested
  6. Financial independence
    • when you can live off the income generated by your investments forever so work becomes optional
  7. Abundant wealth
    • when you have more money than you'll ever need

The 7 Steps to Financial Freedom

  1. What does financial freedom mean to you?
  2. Check in with your money for 30 min
  3. What tradeoffs are you willing to make?
  4. Pick your budgeting style
  5. Optimize your full time job
  6. Evaluate your side hustle
  7. Separate short and long term investing strategies and stay the course

Find your number

This is the number needed to invest to live forever on 4%

Financial Independence Number:

How it works:

Net Worth

It doesn’t matter how much money you make if you spend it all. What’s important is working to increase your net worth over time.

Net Worth = Assets - Liabilities

Building Wealth

Depends on these variables:


Core investment strategy (these 3 asset classes)


Find an amazing investment property:


3 Approaches to Budgeting:

  1. Save on your largest 3 expense categories
  2. Focus on optimizing categories 1 at a time
  3. Track all expenses with envelope style and analyze frequently

Saving Money

Think about Future Value:


Ask yourself these eleven questions before buying anything:

Living off your investments


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