My 3 Steps to Financial Independence

I am a professional. I understand I am never going to be Bill Gates or Steve Jobs who made a dent on earth with their innovations. I am not even going to be the six-figure income earner in Georgia as an architect. But I can participate in the great American economy via the stock market with savings. That is what I did.

In 1995, I opened the first investment account with Schwab. I attended the free introduction class in midtown Atlanta. I read the free handout of Mr. Charles Schwab’s paperback book on investment religiously. Every charter was like opening a door to a brand new world for me. Later I read many stock market related books, including a few versions on Mr. Warren Buffet and his value investment methodology.

My plan was to retire at age fifty and ran half Marathon before that. I retired
debt-free two years later than what my plan was, half Marathon was replaced by Yoga practice. I am still working from home as a free-lance designer. I love what I do and I am proud of what I have achieved. I used to complain about the stress at work, but I also thrived running my own business. To be honest, I DO miss the rush of being the mover and shaker. But I enjoy the freedom of doing what I love and greeting the kids when they come home after school.

Here is the three simple steps to financial independence. I teach my kids often.

Step 1. Save money 
Step 2. Invest
Step 3. Repeat step 1 and 2

If you save $50/day, $1500/month, invest in Nasdaq index fund, you can be a millionaire at age 45, and no saving input afterwards. Achievable for most college grads, right?

Why Nasdaq index fund? Let’s look at the track record of Nasdaq from 2004 – 2017 (including the big crush in 2008). It has grown 12% on average annually. It beats any human stock trader. (Not sure about machine investing though. I am trying out the autonomous money manager)

You can be a millionaire at age 38 with investing $100/day, $3000/month in Nasdaq index fund, and no saving input afterwards. Achievable for most professionals, right? A little hard. But you get the idea.

You will have to be disciplined. But once you set the goal, living towards the goal is a piece of cake, and enjoy the journey.

START YOUNG!

OK. Here is the adjusted 3 steps to financial independence.

Step 1: save as much as you can
Step 2: invest in Nasdaq index fund
Step 3: repeat step 1 and 2

For me, learning and practice towards the goal also lead to my minimalist debt-free lifestyle and my contemporary design philosophy. It is a whole package, and it is healthy, reduces your carbon footprint, and is environmentally sustainable.