Today we met Lucie. She was able to save more than 160,000$ without earning a six-figure salary in less than 4 years and then reinvest that money in real estate and start building her real estate empire. Here’s what she told us
1. Start from a good base and eliminate your debt
Reducing your debt is the first critical step in saving.
If you’re just out of college or business school and have student loans, make it a priority to pay off your debt before improving your lifestyle. Debts are often credits that will swell as you keep the cash flowing. Paying off your credit will be your first priority.
If you take out a new loan, potentially for an investment, make sure your return exceeds your interest payments.
2. Adjust your mindset
If you want to save 160,000$, you’ll have to think and act differently than most people around you.
That means making sacrifices. And making sacrifices doesn’t mean you can never drink a large Mocha at Starbucks again, but it does mean you can’t buy Starbucks twice a day, every day. You’re going to have to live below your means.
3. Set your financial goals
Once you’ve decided that you want to live a frugal, thrifty life, the next step is to set financial goals that you want to achieve.
That is, how much you will save per month for how many years to reach your goal.
4. Keep your expenses low
Keeping the gap between what you earn and what you spend as wide as possible will give you extra money to save or extra money to pay back. The wider the gap, the better.
5. How did I do it?
I found a job as a stock controller in a warehouse with a starting salary of 2,594$ per month net of tax. More than 4 years later, I had saved/earned more than 160,000$.
I managed to save that much thanks to these elements:
I decided to live with my parents, so zero fixed charges, look around if you don’t have a grandma, uncle, etc. The goal is not to have a rent of 0$ but in any case the lowest possible.
My first investment was a bike and especially a padlock(40$ on Ebay). From there, I could go where I wanted.
I have considerably reduced my personal expenses. I go shopping every Monday night, where I privilege the food which arrives has an expiry and in great quantity.
I started nannying on the weekends to earn extra money.
I invested 50% of my salary in stable stocks with high dividends (Total, Persimmon… https://clubets.com/stock-exchange/best-dividend-stocks-to-buy-in-2021/ )
I programmed an automatic monthly transfer of about 1800$ each month into my PEL.
I invested 20% of my salary in venture capital (Crypto Money, Startup Investment etc.) That is to say about 500$ per month.
I used the rest to live, about 294$ per month, 73$ per week.
The 1800$ per month in my PEL, which makes 86400$ in all, became 110 000$How to take control of your life by managing your money well
The 24 000$ invested in venture capital, became about 50 000.
The funny anecdote is that my money invested in venture capital made me poor during some weeks and a millionaire during others. As the market stabilized, my return was about doubled.
So much for my story,
Many people think that entrepreneurship is the only way to get rich. I don’t agree with that, if you have good money management, you can go far. The next step for me is to invest in real estate.
