At the age of 27, Rachel Richards quit her job and retired, living off of $15,000 a month in passive income from her 40 residential rental units. She’s the author of “Money Honey” and “Passive Income, Aggressive Retirement,” and she has an online course entitled “Get Your Financial Shit Together.”
Rachel is no stranger to making her own way. She paid her way through college by selling Cutco Knives and graduated without debt. She loved helping people with money and she knew she was good at sales, so she decided to become a financial advisor. While she was good at the job, it wasn’t all she had hoped for, and she quickly looked for a way out. That’s when she stumbled into investment properties, wrote her book, and began making passive income.
One of the greatest ways to create financial independence is through investing. And the most important rule of investing is to start early. If you look at the history of the stock market, it is always trending upwards. It’s only when you zoom in on the days or weeks or months that you see the volatile dips of it. Still, the overall trend is a constant upward path. When the market goes down, the only way to prevent yourself from losing money is to hold on to your investment.
Another key to financial security is often considered a dirty word—budgeting. If the thought of budgeting turns you off, try and think of it as making a plan instead. A budget is a plan that points to where your money should be going instead of wondering where your money is going.
Whatever you do, the most important thing is that you start early. The principle of compounding interest is incredibly powerful, and small amounts put in over time will lead to big payoffs. Don’t let the regret of wishing you had started sooner stop you from starting now.