I love money. I love having money, making money, and growing money. Society attempts to tell me I am terrible for caring about my money.
The only way to stop caring about money is to become obsessed with it. Once you figure out how to live below your means, save money, and grow your income, your life will improve dramatically.
How did I become obsessed with money? When you are not intentional with your money, you’ll worry about it all day long.
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When I hit 20 years in the military, we were living well; however, I stressed over not having an emergency fund or any free cash flow.
I should have taken my money seriously. I had a “large” budget—meaning I didn’t account for every line item of my spending.
In June 2019, my wife and I focused on destroying our debt while building our wealth. We did not possess a financial mindset at the time, but we were determined to change.
Obsession means everything. From June 2019 to today, I have become obsessed with documenting, saving, investing, and growing my money.
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When I first started, I would write down every penny I made in interest from my high-yield savings account. I remember telling my wife about my first $0.25 dividend from Papa John’s in Aug 2019.
Our obsession paid off rather quickly. Within 3.5 years, we went from -$77,000 to +$250,000. More importantly, our assets produce over $3,000/month in passive income.
The three parts of our money obsession. You cannot just think about money all day; you must take massive action. I can divide money habits into three essential categories: keeping money, saving money, and growing money.
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Let’s review these more in-depth because you will need all three to become financially free and have a successful retirement plan.
1) Keeping money. The first step is learning how to keep your money. The two concepts in this category are living below your means and budgeting.
An excellent place to start is with a strict budget. Yes, you will need to track your spending daily. First, review your earned income from your job.
Then determine a saving rate of 30%. Whatever money you have left is your needs and wants. The book “All Your Worth” explains this budgeting plan.
For example, if you make $5,000/month, you will need to save $1,500/month. From there, you can determine your housing arrangement, cars, and if you can afford any luxuries.
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Once you have a budget, you’ll have to live below your means to meet it. Living below your means is living an intentional life while avoiding credit card debt and excessive spending.
I live on $50/day here in San Diego. I keep my receipts and document my daily spending. If I want to buy a video game or go to a restaurant, I can save for it during the week. Every spending action has a saving reaction to my budget; I am totally in control of my spending.
If you are struggling with this first step, I recommend reading “I Will Teach You to be Rich.” It goes into a long-term plan to go from spender to saver to investor.
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2) Saving money. Once you live within your budget, you’ll have money to save. Saving money helps you prepare for emergencies, avoid credit card debt, and help with your current challenges.
I like to divide my emergency funds into different tiers. You have Tier 1, which is your first $1,000. A Tier 2 emergency fund has close to $10,000, while a Tier 3 fund has six months of expenses.
It will take a while to fund a Tier 3 fund fully, but it should always be in the back of your mind. You’ll need a fully-funded Tier 3 fund to retire early or leave your job to start a business.
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I also like to have a maintenance fund for each house I own. Whether scheduled or unscheduled, maintenance is a significant expense in our lives. We avoid disaster during bad times by planning for it when times are good.
High-yield savings accounts, CD Ladders, and Series “I” Bonds are some savings vehicles. Most people stop at the savings step and don’t pursue the investing phase.
However, this can still lead to financial ruin. As you advance in life, your expenses actually increase. Not only will inflation hamper your savings, but you’ll have children and grandchildren. You will also want to travel and renovate your home.
3) Growing money. There are many ways to grow your income, and you will need to leverage as many as possible. You must complete this step to have a good final tour of life.
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You grow your money by investing. Don’t confuse growing your money with getting promotions, working a second job, or taking overtime.
These methods increase your income, not necessarily your money. You’ll want to make money in your sleep—we call this passive income.
The four main types of passive income are paper (bonds and stocks), royalties (content), rents (homes), and business (automated).
So when I say grow your money, I mean build your portfolio of income-producing assets. Each type of passive income stream has its own specifics; that’s why you’ll need to become obsessed.
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To buy a rental home, you’ll need to consume multiple books on real estate agents, property management, and real estate investing.
To make money with dividends, you’ll need to learn about stock market investing, dividend growth investing, and market fluctuations.
If you are not obsessed with building passive income, you won’t stand a chance of creating money while you sleep.
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Conclusion. You’ll have to be obsessed for a reason; you’ll be going against the grain. The media does not want you to read, write, or understand how to truly make money.
They want you to go to work, pay 50% of your money into taxes, and spend the rest to fuel the economy. By living below your means, avoiding credit cards, saving money, and investing in assets, you’ll be going against your programming.
Are you ready to be completely different from everyone else? Do you want to save and invest $2,000 or more per month? Do you want to earn $1,000/month in dividends? You can do all of these things if you become obsessed. Good Luck!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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