Millionaire Explains: Starting from NOTHING in 2025 — What I’d Do to Become a Millionaire Again

Summary

In this video, Aman from Ris Journey outlines the steps he would take to achieve financial independence if he lost everything he built over his eight-year journey. He emphasizes the importance of having a clear 'why' for financial independence, creating a pay-yourself-first budget, building multiple income streams, and investing in low-cost index funds. He also stresses cutting major expenses, like housing and transportation, learning continuously, and surrounding yourself with a supportive FIRE community. Despite setbacks, Aman believes the opportunities for financial independence are greater now than ever before.

Takeaways

• 😀 Get a crystal clear picture of why you want financial independence (FI) to stay focused on your goal and overcome challenges.
• 😀 Ditch traditional budgeting; implement a 'pay yourself first' strategy to start building wealth immediately.
• 😀 Focus on building multiple income streams, especially side hustles that are scalable and low-cost, like tutoring or content creation.
• 😀 Invest smart in low-cost index funds, focusing on consistency and time in the market rather than hot stock picks or crypto hype.
• 😀 Track your net worth towards FI to stay accountable and motivated in your journey.
• 😀 Cut your two biggest expenses—housing and transportation—through strategies like house hacking and driving a used, reliable car.
• 😀 Dedicate time to learning daily and acting on that knowledge weekly to continually improve your financial strategies.
• 😀 Eliminate broke habits such as spending to impress, living paycheck to paycheck, and comparing yourself to others.
• 😀 Surround yourself with a supportive community that shares the same financial independence goals for motivation and accountability.
• 😀 Focus on freedom over flexing. The rest of the world might not understand your sacrifices, but your FI journey is about personal goals, not societal expectations.

Q & A

What is the first step Aman would take to achieve financial independence if starting from scratch?

Aman would begin by gaining a crystal-clear picture of why he wants to achieve financial independence. He emphasizes the importance of having a strong 'why' to prevent giving up when facing challenges.

Why does Aman suggest ditching traditional budgeting systems?

Aman advises against traditional budgeting because it often doesn’t prioritize personal wealth. Instead, he recommends a 'pay yourself first' system, where savings and investments are prioritized before paying for other expenses.

What is the significance of paying yourself first in financial independence?

Paying yourself first ensures that savings and investments are prioritized over other expenses, which helps build wealth. It’s a key habit for those pursuing financial independence.

How does Aman suggest increasing income to accelerate financial independence?

Aman recommends building a second income stream through a scalable side hustle, such as consulting, tutoring, content creation, or selling digital products. This allows you to diversify your income and speed up wealth accumulation.

What investment strategy does Aman recommend for 2025?

Aman advocates for investing in low-cost index funds. He stresses the importance of consistency and long-term growth, highlighting that time in the market is more important than timing the market.

What role does real estate play in Aman's financial independence strategy?

Real estate plays a critical role, particularly through house hacking or geo-arbitrage. Aman recommends renting out extra space or using employer-provided housing to minimize costs, thereby increasing savings and investments.

Why does Aman suggest cutting expenses related to housing and transportation?

Aman explains that housing and transportation are typically the two biggest expenses. By reducing or eliminating these costs, more income can be saved and invested towards financial independence.

How does Aman recommend dealing with transportation costs?

He suggests avoiding car leases or buying new cars. Instead, driving a used, reliable car can significantly reduce monthly expenses, especially car payments and insurance, which can add up to over $1,000 a month.

What daily habits does Aman recommend for achieving financial independence?

Aman suggests learning something new every day, whether through podcasts, books, or other resources. Additionally, taking action weekly based on this knowledge is critical for progressing towards financial independence.

How important is community in the journey towards financial independence, according to Aman?

Community is crucial. Aman emphasizes the importance of surrounding yourself with like-minded people who understand the FIRE (Financial Independence Retire Early) movement. This support system helps with motivation, accountability, and overcoming challenges.