Financial Freedom

“Money is not just something to earn and spend; it’s a tool to grant you freedom.” Are you ready to rethink how you deal with money and gain control of your time?

1. Break Free from Social Norms to Gain Financial Freedom

The typical script of working a nine-to-five job for decades before retiring comfortably isn’t as viable as it used to be. Grant Sabatier found himself not saving effectively, despite working countless hours. Realizing that inflation, stagnant wages, and debt had made traditional financial paths unreliable, he decided to approach money differently.

To achieve financial independence, he set an ambitious target of saving $1,250,000, enabling him to retire early and live off the compound interest. This decision meant stepping away from societal norms and creating his own path. Grant rejected the traditional model of working until 65, instead focusing on building wealth through investing and multiple income streams.

He launched two side businesses, worked full-time, and invested wisely. These sacrifices paid off; within five years, Grant grew his wealth from $2.26 to over a million dollars. His unorthodox approach unlocked a future free from financial stress.

Examples

• Realized inflation-adjusted incomes for millennials were significantly lower than their parents.
• Worked 5,000 hours of his life but had only $2.26 in his bank account.
• Built enough wealth to live off interest in five years.

2. Calculate Annual Spending as the Foundation for Financial Goals

Money isn't just about earning; managing how much you spend is equally important. Grant began his journey by calculating his annual expenses to determine the amount needed to live comfortably. This foundational step helped him set his savings target, factoring in future aspirations.

Using the 4 percent rule, Grant ensured his investments would generate annual income indefinitely without depleting the principal amount. For example, assuming his estimated expenses were $50,000 per year, he calculated his financial goal by dividing this amount by 4 percent, arriving at a target of $1,250,000.

Each individual's target varies based on lifestyle choices and location. The process encourages a realistic grasp of one’s needs, helping to create a roadmap to financial freedom.

Examples

• Used Chicago living costs to estimate his annual expenditure of $50,000.
• Applied the 4 percent rule to ensure his investments were sustainable.
• Factored future house downsizing into his calculated figures.

3. Understand Your Starting Position: Net Worth

Before you plan your financial future, you need to understand where you currently stand by calculating your net worth. That means knowing your assets (what you own) and liabilities (what you owe).

Grant started with a negative net worth due to $20,000 in credit card debt. This didn’t deter him; he simply added his debt to his savings goal. Positive net-worth earners, on the other hand, can count income from existing investments toward their target.

Tracking net worth daily might seem tedious, but Grant found it rewarding as his financial numbers improved. It became a visible proof of progress, emphasizing how focus and persistence can produce tangible outcomes.

Examples

• Made a list of his assets, including items over $100 in value.
• Calculated total liabilities like credit card debt and student loans.
• Subtracted liabilities from assets to identify starting net worth.

4. Assign Monetary Value to Your Time

Every purchase you make represents time spent working. Grant began evaluating expenses not in dollars, but in hours sacrificed. This reframing shifted his behavior, making him question impulse purchases and prioritize savings.

For example, that $3 coffee might seem trivial, but when factoring pre-tax earnings, it actually requires $4 of income. If someone makes $20 per hour post-tax, that coffee costs 12 minutes of their life. Larger purchases like cars or vacations take even more effort when considered this way.

By assigning a time-equivalent value to money, Grant significantly cut unnecessary expenditures, funneling the savings into long-term investments.

Examples

• Calculated the real cost of a $3 coffee, factoring in pre-tax income.
• Evaluated major expenses like vacations in terms of overall working hours.
• Reduced impulse buys by visualizing time spent earning each dollar.

5. Cut the “Big Three” Costs to Maximize Savings

Housing, transportation, and food consume 60 percent of an average American's budget. This means cutting expenses in these three areas can have the largest impact on savings.

Grant reduced housing costs by downsizing, used affordable transport options instead of owning a car, and leveraged bulk buying for food essentials. Simple sacrifices like living in a smaller home for a few years helped catapult his savings.

He showed how optimizing these key areas isn't about deprivation but strategic choices that accelerate financial goals.

Examples

• Saved thousands by living in a modest space in an affordable neighborhood.
• Substituted driving with public transport, reducing annual costs by $8,000.
• Ordered groceries online in bulk with subscription discounts.

6. Put Your Nine-to-Five Paycheck to Good Use

Grant argues that most people overlook opportunities to make the most of their regular paycheck. Maximizing employer-sponsored benefits, requesting raises, and negotiating work flexibility are powerful ways to add value.

For instance, contributing more into an employer-matched pension fund not only grows savings faster but also reduces taxable income. Asking for a raise after showing measurable contributions at work raises yearly income significantly. Finally, switching to remote work could trim transport costs and add hours back into your day.

By taking advantage of these opportunities, Grant consistently boosted his income while minimizing unnecessary effort.

Examples

• Increased contributions to his workplace-matching pension fund.
• Asked his boss for a 10 percent raise by demonstrating his results.
• Saved commute costs by negotiating remote work days.

7. Side Businesses Fuel Financial Independence

Grant emphasizes the power of side businesses to create passive income. For example, Matt, a graphic designer, turned a $5 dog-walking service into a flourishing business earning $200,000 annually. This income compounded their savings target, setting them on the fast track to financial freedom.

Starting a side hustle doesn’t require massive resources. Grant suggests sticking to low-cost ventures aligned with personal skills and interests. He also advises keeping initial trials simple and scalable.

Running side businesses, such as freelance work or renting assets like properties, allows wealth to grow beyond the confines of a fixed salary.

Examples

• Matt’s $5 dog-walking business scaled to $200,000 annual profit.
• Launched side hustle aligned with personal passion for pets.
• Focused initial efforts on small start-up costs to minimize risks.

8. Transform Spending Habits by Prioritizing Savings

Grant developed a savings rate of over 25 percent by reframing how he viewed nonessential expenses. While others splurged on eating out or luxury items, he funneled saved money into investment accounts.

Rather than strictly adhering to restrictive budgets, Grant directed all unspent funds toward investments. He focused on long-term benefits instead of short-term comforts, building wealth exponentially using compounding.

Sacrificing small luxuries in the present paved the way for a future of financial freedom.

Examples

• Invested saved dining-out costs into stock market accounts.
• Focused on cutting non-essentials like streaming subscriptions.
• Directed rental income toward boosting investment portfolios.

9. Take Action Now, Even If You’re Not Ready

Procrastination is the enemy of achieving financial freedom. Grant stresses the value of starting immediately – even small steps compound over time. Waiting for perfect circumstances costs valuable growth in interest and investments.

He encourages beginning with simple actions like opening an investment account or brainstorming business ideas. Mistakes are part of the process, and the earlier you start, the faster you’ll improve.

Commitment and consistency are essential for staying the course. Sacrificing now will lead to decades of freedom later.

Examples

• Opened a compounding investment account with a $100 deposit.
• Created a habit of dedicating one night a week to brainstorming side hustles.
• Prioritized investing leftover funds from every paycheck immediately.

Takeaways

1. Calculate your annual expenses and savings goal using the 4 percent rule to know your target number.
2. Begin tracking your net worth daily to stay motivated and measure your financial progress over time.
3. Start small by cutting back or investing extra income immediately – don’t wait for the perfect time.