FRLN70: How I Became a Millionaire at 37
Fit Rich Life
Newsletter #70
Tips, Tools & Strategies for your Fitness, Money & Life
Newsletter Archive
“The best investment you can make is an investment in yourself. The more you learn, the more you'll earn.”
— Warren Buffet, Investor
Greetings my friends,
I became a millionaire at 37.
But I could have done it 10 years sooner if I had understood these 6 key money concepts.
I don’t want you to waste years like I did.
If you follow these steps, you can build life-changing wealth faster.
1. Stop Trying to “Look Rich”
I used to spend all my money trying to impress others:
- Luxury condo
- Fancy Range Rover
- Expensive restaurants
- Shopping for clothes
I did this to make people think I was rich, but I was secretly driving myself deeper into debt.
The next step helped me get my money back on track.
2. Track Your Expenses
Studies show that people underestimate how much they spend (by as much as 50%).
I thought I made enough money, but tracking showed me I was spending more than I made.
This meant I was accumulating debt.
It doesn’t matter how much money you make if you spend it all.
Tracking led me to reduce my expenses (and get them aligned with my goals & values).
Then I started cleaning up my debt by following the next concept.
3. Pay Off Credit Cards in Full
For years I only paid the minimum amount on my credit cards each month.
This was a HUGE mistake.
This is how credit card companies make money off you.
By only paying the minimum on my credit cards my debt kept growing until it got so bad that I stopped paying altogether.
I went into collections (and destroyed my credit score).
I could have easily paid off my credit cards in full each month if I had implemented the next concept…
4. Optimize Your 3 Biggest Expenses
To become a millionaire, you must live below your means.
Do this by keeping your (1) housing, (2) car/transportation, & (3) food costs as low as possible at the beginning of your wealth-building journey.
If you optimize 1-2 of these you will accumulate wealth.
If you get all 3 optimized you will get wealthy even faster.
Here is what I did:
- Moved out of the expensive condo & got a cheaper place.
- Sold my Range Rover & got a used Toyota Prius.
- Stopped eating out at restaurants.
Then I started getting wealthier (and you can too)
But NOT if you don’t…
5. Invest in Index Funds
Even if you can only invest $25-$100 per month.
Just start.
Getting started with investing is how you get ahead.
Open up an investment brokerage account with Vanguard, Fidelity, or Charles Schwab (all three are legit, choose one).
Then start investing in a simple S&P 500 Index Fund ETF like VOO.
My biggest regret is that I didn’t start investing sooner.
By implementing the next concept I started building wealth even faster.
6. Avoid Lifestyle Creep & Increase Your Savings Rate
Proactively growing your income is important to building wealth.
But if you spend more as you make more without saving and investing, you will never build wealth.
This is called "Lifestyle Creep" and it keeps you broke.
If you instead focus on increasing your Savings Rate (SR) as you earn more, you can invest more every year.
Your SR is the percentage of money you keep after expenses are paid.
Here's an example:
You make $5K per month after taxes, spend $4K on expenses, leaving you with $1K to save/invest.
$1K / $5K = 20% Savings Rate (SR)
A 20% SR means you have to work for 37 years before you can Retire or be “work optional” (assuming you start at a net worth of zero and invest the savings).
Here’s the magic of increasing your SR:
40% SR = 22 years of work
50% SR = 17 years of work
65% SR = 10 years of work
75% SR = 7 years of work
80% SR = 5.5 years of work
90% SR = under 3 years
Here's what I did:
- Over the years I grew my SR to 50%.
- Then I kept going & got it to 80-90%.
- This led me to reach a $1M Net Worth.
- Then a $2M Net Worth.
Now I'm over $3M, left my 9-5 job, and spend my time helping others on their Financial Journey.
If someone like me who started at $80K in debt can become a Millionaire, you can too.
- Justin David Carl
P.S. If you want step-by-step guidance on how to invest for financial independence and build life-changing wealth check out my newly released course:
Investing Mastery: Your Path to Millionaire
It’s on sale for 50% off ($99 instead of $200) for a limited time only. The price goes up soon.
It includes everything I wish I had learned about money & investing in my 20s so I could have become a millionaire 10 years earlier.