Today we will learn from the book Financial Freedom by Grant Sabatier. In this book, the author teaches us about a seven-step process to achieve financial independence by making more money in less time.
We have this summary here in 12 different parts. And so much information has been given in it that it might even be overloaded. So sit with a paper pen, or after reading this summary, you can also read it to make notes from the back.
1. How I Got From $2 To $1 Million In 5 Years
The authors show that he made from $2 to a net worth of $1 million by following these seven steps in 5 years.
Step 1. Find your number. Figure out how much money you need to be financially free.
Step 2. Make Calculate, Where You Are Today. For this calculation, you can calculate your net worth.
Step 3. Constantly update your thinking about money.
Step 4. Plan to maximize saving and investment to make a budget for spending more.
Step 5. Try and plan to escape from 9-5.
Step 6. Start a profitable side business and diversify your income sources. Most people don’t do this. Instead, he spends his side time working for someone else or wasting it.
Step 7. Start investing as early as possible and do as much as possible.
Because when you invest your money, your money will make more money, and you will earn money at once without trading your time.
2. Time is more valuable than money
Why should you retire early, and how can you retire early?
The author says in this chapter that money is unlimited and time is limited, so save your time. An average person has only 25,000 days in his adult life to live an adult life. And so the purpose of this book is also to help us retire as early as possible to enjoy our youth. Retirement does not mean you will never need to work, but you will never have to do it for money.
And for this purpose, the author recommends early retirement planning by taking advantage of the opportunities of the new knowledge and information world rather than traditional retirement. Because Traditional Retirement Planning has these 3 Problems:
1. First of all, it doesn’t work for everyone
2. Secondly, you spend almost the entire adult life in traditional retirement planning, somewhere you retire at 60-65.
3. Third, you can’t retire and become rich quickly in this.
So therefore, the author advises to use methods, those who work in an updated information world; by using that people are becoming financially free in high school or at the age of 20 to 25 years, so these methods are something like this:
Along with first of all job, we should start a side business
1. Secondly, we should start investing as much and as early as possible, whether in real estate or the stock market. Should finally begin to invest.
3. What is your number?
It might be less than what you think.
When the destination is clear, the way to reach there can be figured out, and here, destination means your financial freedom.
Some people think that a lot of money is needed to be financially free, but the truth is, to be economically complimentary, we need less money than we think. If you do hard & intelligent work correctly, you can quickly achieve this.
In this chapter, the author teaches us the parameters that can help us while creating our money requirement planning for our financial freedom.
1. So for this, the first parameter is your living life means spending the necessary money for survival life
2. 2nd is making the necessary money to plan for a comfortable lifestyle.
3. 3rd, without working, How much money do you want to earn monthly at retirement?
4. Where are you?
Clear your finances.
This means deciding and figuring out at what level you are financially, in terms of money and financial habits. First, figure out how much your monthly income is active and passive.
Second, to figure out your net worth, to figure out net worth, you will subtract all your liabilities from all your assets to arrive at the final net worth calculation.
Third, figure out your financial habits. First of all, you should find out how you feel about money. Once you have completed the commitment of economic decision-making, how long does it happen, or do you still need to meet the burden of financial decision-making? And what is your thought process about earning money, saving, trading, and investing? Figure out everything and try to teach rich habits as soon as possible.
4th, determine your professional status, what you are doing now, a job, a start-up, or a big business. Finally, figure out, in the coming 2, 3, or 5 years, at what level you will reach professionally through helping people and growing your business.
Fifth, understand how much you save and invest and how much you need to protect and support to be financially free as per your due date.
6th Financial Freedom advice is to figure out whom you consult about finances from your friends, relatives, and family members struggling financially or financially stable. And you need to decide as well from whom you need to seek financial advice to become economically independent.
5. Next-level money
How to make wealth fast?
There are many ways to invest money, but all depend on these three principles.
First income, how much money do you earn
Secondly, how much do you spend out of your income?
And third is saving, how much of them you save and invest it to make wealth.
Therefore, while planning for wealth creation, you should keep these three in mind and focus on maximum savings and investments.
Let’s Discuss One-By-One Quickly wealth creation methods.
First, let’s develop an enterprise mind, meaning calculating your hourly and every-minute earnings. And plan accordingly how much you want to earn and how much you need to make per hour.
The second is to optimize your 9 to 5 job, which means looking at your job, how much you earn from there, and how much time you give. Always remember that the job earnings are fixed because time is limited.
Third, start your side business, To diversify your income sources, i.e., start a side business along with jobs to earn from different sources.
Fourth convert your side business into passive income; for this, you keep building up your side business side-by-side and hire people to do your business. So that by this, they also get employment, and by running your business without you, you earn passive income with the job.
The Fifth way is to invest; as soon as possible and as you can, start getting financial education, investment education and share market real estate and all the investment strategies and then invest in different sectors, which you have learned so that you can make passive income from those investments before your due date.
6. Is It Worth It: 11 ways to think about money before buying anything
The quote of the chapter is to save money is to make money.
Yes, we will ask such questions, which, if you ask yourself this before buying anything, will help you decide whether it suits you.
So the first question in this series is, how happy will this purchase make me?
The second question is, how much money do I need to afford to buy this thing?
The third question is, how many hours of my life will I trade to do this? That means how many hours do I need to work to afford it?
Fourth, can I afford this?
Fifth, the price of this product is what percent more or less than the comparison of other products?
Sixth, can I buy it for less money?
7th, how much convenience will be required for this? How much will bring, transporting and maintaining the product cost?
8th, How much will it cost me every year for this? Or what is the cost of maintaining it for my life every year?
Question 9th, how much does this item cost?
Question 10th: How beneficial will the product be for me in the future?
Question 11 is the most critical in this question list, and that question is, how much time will this item buy me in the future? So that means how much time will it save me?
These questions can help you buy the right, beneficial, worthwhile thing.
7. A budget that you will ever need
How to increase your savings rate up to 25% by living for free?
Here we will talk about something other than the budget. Budget means, You will create a budget to save money by cutting out your small expenses, but in this, we will talk about how you could save more by keeping your high costs like housing and transport expenses.
So let’s discuss these money-saving ideas one by one.
To save on housing expenses first, you might be living in a smaller apartment or sharing with a classmate or your neighborhood before you’re financially free. Some people want someone to take care of their house, and they will use a room to live in. So after finding such a house, you can live there for free.
To reduce housing expenses, you can rent a single two or 3-bedroom apartment and live in only one of them, the other 2 to rent to someone else. Then, with the money coming from it, you can live for free by paying its rent and earning some extra.
Similarly, for the transportation budget, you can travel by public transport or any cheap transport until you are financially free. Or you can go with a friend to his office and place of need. This way, by using these tips, you can save more than money by reducing your housing and transportation expenses.
8. Optimize your 9 to 5 job
Turn your full-time job into the one launching pad for financial freedom.
Optimizing your job is crucial to making more money and quickly hitting your financial freedom number.
Your short-term strategy should maximize salary, incentives, and job benefits by improving your skill set.
Your long-term strategy should improve your information and skills and make your company successful by using people’s skills, knowledge, and talent.
Here are some ways by which you can maximize your salary incentives and job benefits.
First, let’s discuss maximizing job benefits.
1. To maximize your job benefits, you can meet your employer and talk to them about providing more benefits.
2. You should get a company providing insurance policies
3. If you are unhappy with any of the benefits of the job, then try to negotiate to get the benefits you want.
You can use these tips to optimize your salary.
1. By improving your skills
2. Earn more incentives
3. By working with the company on a percentage basis instead of a salary
4. By working in a company that offers more salary for the same work
Use such types of tips to maximize your job pay and benefits. And always remember that skills and networks will help you in your short-term and long-term donated success. So most focus on increasing your skills and your network.
9. How to make more money?
A profitable side hustle in less time.
As we all know, a side hustle means doing some work in my rest time apart from my job. To diversify your income, to learn something new, and to be determined, starting a side business with minimal risk can be very profitable.
You can do a side hustle in two ways. First, will you work for someone else or work for yourselves? If you work for yourself, you’ll learn and feel happier. But if you work for someone else, you will only get paid as you got in a job. In such a situation, due to not getting time to work for a business and investment in the future, the way to be financially free may be difficult for you.
That’s why you should prioritize doing business in the side hustle.
You can quickly take these steps to decide to do side business or side work.
First, find your passion and start a side-by-side of any work by developing your skills to benefit people through it.
Secondly, after starting it, convert it into a money-earning platform. And for this, you can take the help of tips to demand reasonable payment from the market.
1. Improve your skills to provide customers with better service and benefits than your competitors.
2. Charge the same or a little less than the competitors are charging
3. Build a value and reputation in the market through quality work.
4. Learn about business building and scale up your business step-by-step.
10. 7 steps fast track investment strategy, accelerate your money making.
These seven strategies are based on these five concepts that can directly affect you. Therefore, these should be read and used as needed:
1. The first concept is to minimize your risk
2. Second is to minimize fees
3. Third, minimize the tax on your contribution.
4. Fourth, maximize your returns
5. Fifth, minimize your withdrawal taxes.
And always keep this in mind; only invest in what you understand.
Let’s discuss seven strategies one by one:
1. The first step is to separate your short-term and long-term investment goals: This means planning the amount you want to earn from short-term investments separately and planning separately for the long-term investments you want to make.
2. Figure out how much you have to invest: As we all know that the more we do savings, the more we will support, and the more we invest, the more we can achieve our goal of financial freedom. Therefore, Plan how much money you will save and invest continuously.
3. Decide the target asset allocation: This means, What percentage of your investment income you plan to different sectors, that means stocks, bonds, real estate, businesses, etc., planning to invest.
4. Evaluate your investment: This means evaluating the lowest to lowest fees for investing in different sectors. Try to give minimum fees.
5. Choose a suitable investment: Keep two things in mind while investing. Firstly, secure your money. Secondly, while investing, by the date of your target, there is a high probability that you will increase as much money as you want.
6. Maximize Your Tax Advantage Account: Taxes can take a big part of your future investment earnings, so it is necessary to plan to minimize taxes from the very beginning. You can do this by opening a tax-free contribution investment account, in which you do not have to pay tax at the time of investment.
7. Invest from a taxable account: To minimize your tax after the Tax Advantage account settlement, make the maximum investment from the same tax advantage account.
11. How to convert $10,000 into millions in real estate investing
Real estate investing is a great way to diversify your earning portfolio. And it is much safer and more profitable than other investments like stocks, stock markets, or bonds.
There are three ways to invest in Real Estate:
1. You can buy and sell property, make money
2. Now, by buying a lower price, you can convert the same property into a better home and earn money by selling it at a high price.
3. You can buy the property and hold it long-term. And later on, by increasing the price, you can earn money by selling it.
These 9 Tips Will Be Very Helpful in Finding Out a Profitable Property
1. Develop and follow real estate investment criteria
2. Set a budget and get pre-approved for a home loan
3. Find out properties that offer maximum to maximum rent and positive cash flow
4. Find a realtor or property broker who will put in the hard work of maintaining your property
5. As soon as you see a profitable property, own it as soon as possible
6. Looking for properties to sell at low prices
7. Keep visiting properties near you
8. Find the experience property home manager
9. Be prepared to walk through property sales if needed.
12. How to stay away from investing for the rest of your life
To retire early, you must develop the right investment withdrawal strategy. Where without you, your money works.
You should follow these tips to earn consistently while saving after retirement tax.
1. Stay away from your investment as much as possible and build it passively
2. Make the maximum effort for tax savings
3. Withdraw money from the maximum tax advantage account
4. You can also use the Advantage Withdraw strategy
And finally, if you plan to retire early, set a clear focus on what you want to do after retirement.
For example, you want to work on a specific passionate project, travel the world, or something like that. And after retirement, first of all, do your passion for a few months or years so that you can feel early retirement, which is getting only to some % of the people of the world.
Because “Freedom is unlimited, and when you play with it, you become limitless.”
Let’s do a point-to-point review of all the chapters in short learning before ending the summary. It should be easy to remember and implement these.
1. In the first chapter, we learned about financial goal setting
2. According to the 2nd chapter, you should make your early retirement plan as soon as possible
3. According to the third chapter, you should write the accurate money number that shows how much rupees you require to be financially free.
4. In Chapter 4, you got explicit knowledge of your financial position. For example, how much are you earning now, how much is your savings, how much investment are you making, and how much is spent?
5. In Chapter 5th, the author explains that we should start a side hustle along with the job.
6. According to Chapter 6, we should ask ourselves 11 financial questions before buying anything
7. Chapter 7th – Should reduce your significant expenses
8. According to Chapter 8, you should maximize the salary and benefits of your current job.
9. Learning of theNinth Chapter is to start your own side business
10. According to the 10th chapter, we should walk on the fast financial track
11. According to Chapter 11, we should also invest in real estate
12. According to the 12 chapters, we should do early retirement exit planning
13. According to Chapter 13, we should implement and take what we have learned to develop rich habits
Thank you, friends; I hope you liked this summary. I hope you may reach your financial freedom earliest by adopting all the lessons from this summary.
Buy the original book now: Financial Freedom.
11 thoughts on “Financial Freedom”
Excellent book summary…
Money is unlimited but time is limited.
Create side hustle.
F I N A N C I A L. F R E E D O M
सबसे पहले अपने passion को ढूंढें और उसके लिए लोगों को फायदा पहुंचाने के लिए, अपना skills develop करने के लिए, साथ-साथ कोई काम शुरू करें।
दुसरा, काम शुरू करने के बाद, उसको एक money earning platform में convert करें। ताकि आप अच्छी payment market से demand कर सके
Thank you Amit sir
Very nice book summary
In this book “Financial Freedom”we had learned how to manage time along with money for our happy future life.?Amit sir?? excellent ? summary.
Reader’s book club ek aisa platform hai jaha pe aap daily books pdhne ki aadt dal skte ho aur hr din kuch naya Sikh skte ho .. today my first reading book in dis platform…it’s was Amazing ??…Thanku Amit sir …u r doing well..!!
Financial freedom..this book is very important and provide great knowledge to earn money and become financially freedom at early age…..And this line hit me hard that …(money is unlimited but time is limited)…..so think ,and do ur best….??
Financial freedom by grant sabatier :: amazing book summary kafi ache tarike se details ke sath hr ek point ko samjhaye hue ye book likhi gyi haj achi baat is book ki he lagi ki time limited hai or paisa unlimited to agar aapko paise unlimited chaiye to aapko limited time mein job ke sath sath side hustle or kuch investment plans jaise real estate,share market, trading, bond in sabhi mein information ke sath investment suru krni cahiye
Financial freedom ye book btati hai ki humko apna career jaldi srur kr lena cahiye or investment and saving ke liye planning karni chahiye jiss se hum apne finance ko build kr ske
I am grateful to Amit sir and Readers book club for providing us the best book summary in a very lucid language❤️.
The best takeaway from the book is: Early retirement plan.
The quote that hit me hard was : Money is unlimited but time is limited.
Side hustle is very much important because for living a healthy life 9to5 jobs are not sufficient.
“To be your own boss” is the best feeling in the world.
Sorry sir for writing the comments today after the challenge completed but that time I thought I have commented on every summary on daily basis but I have forgotten to comment on this first book. Although I have commented on every summary .
This is one of the best book for everyone who has no control over their money and they don’t know the nature of the money . In this book author has suggested some small small steps by following those steps like how much you are earning and how much you can save and invest in other business, make a goal for future investment , make a early retirement plan , start earning passive income etc we can definitely achieve the real financial freedom in the real sense.
Day 10 of reading challenge
Perfectly understanding about finance