Below is a “Money Game Blueprint” that covers the knowledge and advice Lukasz passed onto me for sorting out personal financial freedom. It’s the Blueprint that he’s used himself to stick it to the man and become a fellow Black Sheep Bandit. This week’s podcast explains how together we’ve been working on implementing the Blueprint in our lives.
Let us know your own financial freedom stories – the good and the bad – in the comments below. I’ll send the best three a Torero goody bag with love 😉
10-Step Money Game Blueprint
1. The first step is to get rid of debts & loans. Pay off credit cards, student loans etc. as a priority. If you’re in a hole, stop digging. Pay cash for things so they seem real. You will never make money by paying interest.
2. Reduce your monthly spending to keep overheads low (rent, food, travel). Eliminate luxuries and materialistic spending. Cut out the recurrent billing (e.g. Netflix, Tinder) you’re paying. Watch out for hidden fees.
3. Build a Fuck It fund of savings. Systematically and automatically put a percentage of your monthly income (10% minimum) into a hard-to-touch savings account or stock index mutual fund. Don’t access for at least 10 years. Dig your well before you’re thirsty. Understand the power of compounding.
4. Educate yourself on the basics of investing and finance. No need for a Harvard MBA, it’s all online for free. Keep it simple – Wall Street like to confuse you intentionally.
5. Ignore flashy “Get Rich Quick” trends, schemes and fashionable investments. You’re in it for the long haul so ride out Bears and Bulls. Ignore short term market movements. Trade less (others win by getting you to be active with your betting). It’s slow rather than sexy you’re after. Remember you want long term gains not short term pleasure.
6. Get to work! Increase your monthly income through hard graft. There are no short cuts. Build up a business where you get paid while you sleep (passive income). Cut the excuses. Hustle hard. There’s no magic pill.
7. Put your money into things that don’t depreciate. Buying an apartment you can then rent out is an example of asset appreciation. Buying a flashy car is an example of property that depreciates as soon as you drive it out of the show room.
8. Protect your assets and income. Diversify the income streams to become ‘antifragile.’ Divorces are expensive. Child support is expensive. Black Sheep Bandits should be super diligent against such massive life decisions.
9. Develop a minimalist mindset. Value experiences over things. Freedom of time is the ultimate status symbol. Work out how much money you need per year to be free (it’s less than you think, especially outside the USA/UK) and then don’t exhaust yourself hustling beyond that.
10. Stop dreaming of retiring at 65 and putting your feet up. You need to work, you need projects, you need to be active, for as long as possible. When you love your work this is not a problem. Investing in your health is essential to keep your newfound freedom going for as long as you can.
- 4-Hour Workweek (T Ferriss)
- Reinvent Yourself (J Altucher)
- Gems From Warren Buffett (M Gavagan & W Buffett)
- Antifragile (N Taleb)