Episode 95: Why you should tell The American Dream to eff off!
High school business teacher Dan Sheeks joins True Multifamily to talk about his latest book, First to a Million: A Teenager’s Guide to Achieving Early Financial Independence. The book is written for young people where he introduces the idea that you don't have to work till you're 65.
Teaching the basics of investing such as passive income and real estate investing, Dan offers various options for building wealth and achieving early financial independence. Dan also shares the 4 mechanisms that lead to early financial independence, which has nothing to do with being rich.
Here are some power takeaways from today’s conversation:
About the book and its target readers
Why you should tell the American Dream to eff off
Why financial independence has nothing to do with being rich
How to achieve early financial independence
Episode Highlights:
Why You Should Tell The American Dream to Eff Off
The book challenges the typical mindset of Americans and what society has told us that we have to do. The typical American Dream is to graduate college, get a good job, get married, have 2.3 kids, a dog, and a white picket fence. You work till you're 65 then you can retire and live a good life. There's nothing wrong with that path. It has worked for millions of people, and it's a very noble way to live. But there are also other options that don't require you to work until you're 65.
Why Financial Independence Has Nothing to Do With Being Rich
The overall happiness of someone starts declining after you get past that point "having enough plus a little extra" because there are a lot of responsibilities that go with it. Financial independence is not about owning private jets, five houses, going on the most expensive vacations at five-star resorts.
Financial independence is having enough plus a little extra – so that you are doing and enjoying everything that makes you happy in life. And so, the main benefit is getting your time back or the option to spend your time as you would choose, versus having to go to work five days a week, 40 hours or 60 hours a week until you're 65. Then you could use that extra time to engage in the things that make you happy.
How to Achieve Early Financial Independence
Dan recommends doing the 4 mechanisms that lead to earning early financial independence: earn more, spend less, save the difference, and invest your savings wisely. Track your income and expenses. If you're saving 30% to 50% of your income automatically every month, you reach early financial independence. And the first step to being able to do that is to know what's coming in and what's coming out.
Resources Mentioned:
Book: First to a Million
