🔓 This is how American financial advisor Brenan Schlaebaum built his wealth
Brenan Schlaebaum, author of 'A Roadmap to Financial Freedom', revealed 14 practical and simple steps that allowed him to pay off his debts by age 24, achieve his first million by 30, and reach financial freedom by 32. Here’s the complete plan👇
💡 1. Track every dollar
Monitor where your money goes for 30 days, as management starts with awareness.
📊 2. Divide your money using the 50/30/20 rule
50% for necessities 🛒
30% for lifestyle 🎟️
20% for savings, investments, and debt repayment 💰
🏦 3. Open two accounts
Bill and investment account (70%)
Entertainment spending account (30%)
🚨 4. Create an emergency fund
Start with $1,000 and then grow the fund to cover 4 to 6 months of expenses.
💳 5. Pay off bad debts (the avalanche method)
Start with the highest interest debt, and focus on paying it off first.
🛡️ 6. Protect yourself with insurance
Don't be reckless: health, car, life, and long-term disability insurance.
📈 7. Start investing
Open a retirement account, then invest in a personal account, and launch a separate investment account.
💹 8. Invest simply
Low-cost index funds
Automatic monthly investment
Reinvest profits
This step alone earned him millions of dollars!
💳 9. Improve your credit scores
Don't delay payments
Keep card usage low
🏠 10. Stick to the 25% rule for housing
Rent or monthly payment should not exceed 25% of net income.
🔎 11. Monthly financial review
30 minutes a month to review accounts, investments, and pay off cards.
📉 12. Get smart discounts
Negotiate with service providers (Internet, phone, insurance), send:
"I want to cancel, the price is too high"
⏳ 13. Invest early
Invest $500/month from age 25 = $1.7 million
The same investment from age 35 = $745,000
The difference? 💸 time!
❌ 14. Avoid these mistakes
Lifestyle inflation
Ignore retirement
Accumulation of debt
Buy investments based on 'the trend' only