Self Made Millionaire explains: Why early retirements is pointless | Akshat Shrivastava

Summary

This video emphasizes achieving financial freedom through a combination of time and location freedom, skill development, and smart decision-making. The speaker highlights the importance of being in the top 5% of your field, working smarter rather than harder, and making strategic investments to build passive income streams. Time freedom is tied to offering unique value, while location freedom can be achieved through investments in real estate and online businesses. Ultimately, financial freedom is not about doing nothing but finding purpose and maintaining productivity in life.

Takeaways

• 😀 Time freedom comes from offering unique value, which allows you to set your own schedule and attract clients willing to invest time and resources.
• 😀 Being in the top 5% of your field significantly increases your opportunities for time freedom and success.
• 😀 Smart work is essential as you age and your energy decreases. Use your experience to make smarter, strategic decisions instead of relying solely on hard work.
• 😀 A key part of financial freedom is making smarter investment decisions. For example, seeking higher returns (12-15%) rather than relying on low-yield options like fixed deposits (FDs).
• 😀 Avoid blaming others for failures. Accountability and continuous learning from mistakes are crucial to making smarter decisions and achieving financial success.
• 😀 It is important to understand the difference between hard work and smart work in order to scale efficiently and avoid burnout over time.
• 😀 Passive income streams, such as property investments and online businesses, are critical for achieving location freedom and financial independence.
• 😀 Location freedom can be achieved by creating passive income sources that allow you to work from anywhere, as opposed to relying on location-specific income.
• 😀 Financial freedom allows you to make strategic choices about how you spend your time, but it still requires effort, productivity, and continuous learning.
• 😀 Achieving financial freedom is not about doing nothing—it’s about being productive, finding purpose in your work, and contributing meaningfully.
• 😀 Building a diversified set of passive income streams, such as investments, online businesses, and content creation, can help secure long-term financial freedom.

Q & A

What is the traditional idea of retirement, and why does the speaker challenge it?

The traditional idea of retirement involves working hard for many years, then buying a house, settling down, and enjoying life with free time and travel. The speaker challenges this by sharing their experience, emphasizing that retirement is not the solution for everyone. They find more meaning by returning to the workforce, showing that having more freedom doesn't necessarily mean stopping work entirely.

Why does the speaker emphasize that retirement can't be planned on an Excel spreadsheet?

The speaker highlights that retirement has many moving parts and cannot be reduced to just numbers and spreadsheets. Practical approaches and flexibility in planning are crucial because retirement involves various factors, such as financial freedom, time freedom, and location freedom, which cannot be calculated in a simple formula.

How did the speaker start their journey toward retirement?

The speaker began their retirement journey at the age of 20 by balancing multiple jobs. They worked in college while also tutoring GMAT students and later secured a job at a nonprofit organization. Over time, they transitioned to a career in management consulting, where they accumulated wealth, eventually enabling them to pursue financial freedom and passive income.

What is the significance of 'time freedom' in the speaker's definition of retirement?

Time freedom refers to having control over how one spends their time. The speaker stresses that while financial freedom is important, having time to enjoy life and pursue passions is equally vital. This freedom allows people to lead a fulfilling life without the constraints of a rigid work schedule.

What is the role of location freedom in achieving retirement, according to the speaker?

Location freedom allows individuals to live where they want, without being tied to a specific place due to work or other commitments. For the speaker, this meant moving to Goa for a better quality of life, free from pollution and the constraints of living in a crowded city like Delhi. Location independence adds to the overall freedom in retirement.

How does the speaker describe their daily work routine in 2024?

In 2024, the speaker typically works 3 to 4 hours a day, focusing on managing their hedge fund, creating YouTube content, coaching people on money management, and working with high-net-worth investors. Some days may be longer, such as when running investment summits or teaching classes, but overall, they enjoy the flexibility of their schedule.

Why does the speaker believe that retirement is not about doing nothing?

The speaker argues that retirement should not be about idleness or simply relaxing. Instead, it should involve meaningful activities that provide purpose and fulfillment, such as pursuing passions, staying productive, and contributing to society. True retirement is about finding balance between freedom, work, and life.

What does the speaker mean by 'work gives meaning'?

The speaker believes that work is not just a means to make money, but a source of personal fulfillment and purpose. As one gains experience, work becomes about more than survival; it becomes a way to find joy and contribute to something meaningful. This perspective shifts as individuals grow and evolve in their careers.

How does the speaker view the role of work in setting an example for their children?

The speaker sees their work as an important way to set an example for their children. Even if they have achieved financial success, demonstrating hard work and dedication is crucial for inspiring their kids. They believe that children learn more by observing consistent effort and discipline rather than just being told what to do.

What are the three types of freedom that the speaker considers essential for retirement?

The speaker defines retirement as having three types of freedom: financial freedom (the ability to live without worrying about money), time freedom (the ability to choose how to spend one's time), and location freedom (the ability to live anywhere and travel without restrictions). These freedoms are the core of their retirement philosophy.