To a lot of people, financial freedom is that one elusive goal that always seems out of reach. You try, save but somehow it still manages to escape your grasp.
For anyone in this category, you can finally rest thanks to a recent Twitter thread by Dr Tayo Oyedeji titled, ‘The most important element on the road to Financial Freedom.’
On February 3, 2019, the entrepreneur, business leader and financial literacy teacher shared the one thing anyone needs to gain financial freedom.
He starts by making reference to his friend who earns about a million dollars and lives extravagantly.
His tweet reads: “One of my good friends makes about a million dollars a year and he lives and looks like a million dollars. He owns a $2m house in New York and another $1.5m house in Lagos. He owns about 6 cars (worth about $1m) and his 3 kids attend a $75k boarding school in Switzerland.”
“My friend wears $5,000 Ferragamo suits, $1,000 pairs of shoes (mostly Hermes) and takes $30k vacations twice a year with his family. Dude, if you’re reading this, I’ve got nothing but mad love for you. I am just using you as a teaching moment.”
Dr Oyedeji continues, “Dude works 70–80 hours a week and is always pushing one speculative deal or the other to make more money - Cryptocurrencies, FX trading, Angel investing etc. He is your classic rich guy who is always looking to make more money.”
The business leader then uses the example of his extravagant friend to explain the importance of financial freedom and how to attain it.
In his words, “Financial Freedom is not about what you make, it’s about what you keep. Please say it with me: FI: RE IS NOT ABOUT WHAT YOU MAKE, IT’S ABOUT WHAT YOU KEEP. The most important element on the road to FI: RE (Financial Independence: Retire Early) is FRUGALITY. You must live way below your means while making a lot of money in order to become financially free.”
Dr Oyedeji goes on to reveal how to become financially free writing, “Making a lot of money is not enough. You must save and invest a huge percentage of what you make to become financially free. I was saving 40% of my salary while working full-time and living way below my means. That way, I was able to push a lot of money towards my investments.”
“Your income either finances your lifestyle or your life. The way to FI: RE is to consciously live so simply that you can walk away from the rat race while you’re still young enough to really enjoy your life.”
He concludes with an important statement tweeting, “Your life or your lifestyle - choose one.”
There you have it, all you need to do is simply live below your means and you will be on your way to financial freedom.