How I became a Millionaire by 31 on a Low-Medium Salary (Copy & Paste My Lazy Strategy)

Summary

In this video, Yvon shares the journey of how he became a millionaire by age 31, starting from a low salary and overcoming financial mistakes. He highlights four key strategies: maximizing employer-matched retirement contributions, increasing his income through side hustles, investing in properties and tax-free savings accounts, and frequently changing jobs to increase his earnings. Yvon emphasizes the importance of staying focused on personal financial goals, using a budget, and praying over finances. His story is an inspiring guide for anyone seeking financial freedom, especially those starting with limited resources.

Takeaways

• 😀 Max out your employer match: Take full advantage of employer-sponsored retirement savings plans to boost your wealth with employer contributions.
• 😀 Increase your opportunity gap: Focus on increasing your income rather than reducing expenses to grow your financial capacity.
• 😀 Start side businesses: Side hustles, such as tutoring or consulting, can significantly boost your income and help pay off debt or invest.
• 😀 Invest smartly in low-cost, diversified assets: Use tax-free savings accounts and ETFs to grow wealth with minimal effort.
• 😀 Use real estate as an investment: Turning your primary residence into a rental property can generate passive income while building wealth.
• 😀 Job hop strategically: Switching jobs can lead to higher salaries and accelerate your financial growth, especially if you’re strategic about it.
• 😀 Start saving and investing early: The earlier you begin contributing to retirement savings, the more you can benefit from compounding.
• 😀 Be aggressive with retirement savings: Contribute as much as possible to retirement savings accounts, including tax-advantaged ones like retirement annuities.
• 😀 Stay focused on your financial goals: Don’t fall into the trap of following others’ financial decisions or living beyond your means.
• 😀 Use budgeting to stay on track: Consistently track income, expenses, savings, and investments to maintain control over your financial health.

Q & A

How did you become a millionaire by 31, despite starting with a low salary?

I became a millionaire by maximizing retirement savings through employer match schemes, increasing my income via side hustles, investing in property and tax-free savings accounts, and changing jobs frequently to earn more. I also stayed disciplined with budgeting and focused on my long-term goals.

What is the 'opportunity gap' and how did it help you build wealth?

The opportunity gap refers to the difference between how much income I earned and my expenses. By increasing my income through side hustles and businesses, I was able to reduce debt faster and invest more, widening the gap and accelerating my wealth-building process.

Why is it important to take advantage of employer match schemes for retirement savings?

Employer match schemes are important because they essentially provide 'free' money for your retirement savings. By contributing to these schemes, you can significantly boost your retirement fund without additional personal effort, as the employer matches your contributions.

What role did side hustles play in your financial journey?

Side hustles were crucial in increasing my income, which allowed me to pay off debt faster, invest more, and ultimately build wealth. Whether through tutoring or consulting, the additional income provided flexibility and accelerated my financial growth.

How did you manage debt while also saving and investing?

I managed debt by allocating a portion of my side hustle income to pay off high-interest debts while also contributing to my savings and investments. This allowed me to work on reducing liabilities while simultaneously building assets.

What kind of investments did you make on your journey to becoming a millionaire?

I invested in property, tax-free savings accounts, and ETFs. I also used retirement annuities and REITs (Real Estate Investment Trusts) to diversify my investment portfolio.

Why did you decide to change jobs frequently, and how did it benefit your finances?

Changing jobs allowed me to negotiate higher salaries and increased my earning potential significantly. Staying at one job for too long can limit your income, so by job hopping strategically, I was able to earn much more, which contributed to my wealth accumulation.

How did you balance your financial goals with maintaining a personal life?

I stayed focused on my financial goals by staying true to myself and not getting distracted by others’ spending habits. I made sure to prioritize spending on things that brought me joy and avoided trying to keep up with the lifestyles of others.

What role did prayer play in your financial journey?

Praying over my finances helped me stay grounded and guided my decisions. It was an important aspect of my journey, especially as someone who lacked financial knowledge at the start. It gave me clarity and focus on where my money should go.

Can you explain the budgeting system you used to track your finances?

I used a budgeting tool that helped me track all my income, expenses, savings, and investments. The tool allowed me to see exactly where my money was going, which helped me stay disciplined with my finances and ensured I was contributing enough towards savings and investments.