“True wealth is about building out a Financial Runway―creating enough readily accessible wealth that you can survive without work for a year. Then five years. Then for life.”Scott Trench
Set for Life | Scott Trench
Scott Trench is the CEO and President of BiggerPockets – a property investment and financial independence blog. In his book Set for Life, he writes about how maintaining a very frugal lifestyle for even just a few years can massively boost an individuals net worth and increase their investment opportunities, allowing them to reach financial independence much quicker and pursue a life of travel, passions, and freedom.
An underlying theme for the book is the case for accepting personal responsibility; you are responsible for your future. Trench stresses the importance of staying in control of your own emotions, being self sufficient (doing things yourself) and keeping a laser like focus on your goals. Some of my big takeaways from Set for Life are;
- Save $2000 immediately as your emergency fund!
- Read as much as you can and educate yourself (aka read the Captains Library)
- Build and enjoy a frugal lifestyle to save most of your income
- Start a side hustle that leverages your current skill set.
- House hack: rent a room, rent OUT your spare rooms or space (such as garage)
- Learn to become self sufficient and insource – Do It Yourself!
- Network, always tell people know your goals, and learn as much as you can from people who have achieved your or similar goals.
- Automate your saving and investing where possible
- Improve your decision making skills by focusing on what matters (and not trivial crap!)