8 things I did to get my first $100,000 after college and how you can do it too
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1. Lived like a student
After graduating college, I kept living like a student
No, I don't mean eating microwave ramen noodles and frozen food
It means not buying a brand new car that most people do as a "gift" to themselves for graduation
2. No lifestyle creep
Regardless of any salary increases, I kept the same spending habits
My budget has remained constant all these years
This has allowed me to accumulate more in savings during the first years
3. Paid myself first
After every paycheck, the first action is to pay myself
That money goes toward
• Emergency fund
• Investment accounts
• Self-education
• Side projects
I am my first and biggest expense
4. Invested consistently
I have been saving and investing consistently
Early on, you need to focus more on accumulating capital for investing instead of great returns
Getting a multi-bagger on a $500 investment won't change much in the grand scale of things
I realized the power of compounding, that's why I focused on investing every month no matter what
Those 8-10% returns won't be much on a $10,000 portfolio but they will be life-changing on a $200,000 portfolio
5. Took calculated risks
I always hedged my bets before investing
I didn't chase any get-rich-quick schemes or too-good-to-be-true investments
I only took calculated risks that I could afford
6. Made a few asymmetric bets
I made a few asymmetric bets, i.e. low risk - high return
But as mentioned before, these did not move the needle much in the grand scale of things, since they happened when I had not invested much
7. Financial literacy
This was probably the most important change
I learned the basic financial and investment principles, before getting into investing and managing my own money
That helped me avoid many pitfalls and scams and stay consistent in my financial goals
8. Created an end goal
Having an end goal for saving and investing makes it easier to stick to it, even when it's hard
My goals are to:
• Work on passion projects
• Become financially free
• Control my time
Working towards these goals helps me stay the course
To summarize:
1. Lived like a student 2. No lifestyle creep 3. Paid myself first 4. Invested consistently 5. Took calculated risks 6. Made a few asymmetric bets 7. Financial literacy 8. Created an end goal
These are the principles I followed to get to my first $100,000 after college and get on track for early retirement and financial freedom
What's your plan to become financially free?
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