How a Stolen Bike Made Me Rich

bike

A few years ago, back when I was still a university student, I bought a brand new road bike which I owned and loved for a couple of months before it was quietly stolen in the early hours of a grey rainy morning. There were no any security cameras, so the local police couldn’t do anything about it. I never got it back.

I was devastated. It was worth the equivalent of a few hundred dollars, which was a lot of money to me back then when I only working part-time around my studies for £8 an hour and was spending less than £20 a week on food. For months after that every time I thought about the money I wasted on a stolen bike I would kick myself for not being more careful.

I was so upset and angry that I made a vow to myself that one day I would earn enough money so that losing a few hundred dollars would never affect me so badly again.

Little did I know that over the next few years the incident would become fuel for my future growth and a valuable life lesson.

Over the following months I worked hard to finish my degree and was awarded prestigious internships in the public sector. I was offered good job opportunities at the end, but I turned them down because it wasn’t enough for me. I switched to the private sector because it paid more money. I’m not saying that the bike incident was the only reason (after all, I had been bought up by Asian immigrant parents who equated money with self-worth which took me years to get over) but I was definitely motivated by earning more money for the better part of my career.

Eventually I grew exhausted with corporate life, so I quit the conventional career path and started my own business so I could work less but still, of course, earn more money. To cut a long story short, now my investments are paying off and my business is growing every year. I’ve earned and saved enough resources in the last two or three years that I’ve noticed myself feeling more free about spending and giving money away.

So thanks to the bike thief, I made and fulfilled that promise to myself to earn enough money so that a few hundred dollars isn’t such a big deal any more. At least, it’s not worth getting so upset over because I can earn it back. But looking back now I can see that the original promise was a shallow reaction to losing money. The real question is, how can feel less stressed about money, and more happy about my life? Is it as simple as earning more?

No, the answer is more complex. Certainly earning more money helps (and I do appreciate there are people who don’t have a lot and would be horrified at the thought of working hard for something expensive and having it stolen—see above, I’ve been there) but as I get older and I naturally cycle through more things over time, I’ve also noticed myself getting less and less attached to things in general.

Whereas when I was a child the few toys and clothes I had were precious to me, nearly three decades later I’ve gone through hundreds of possessions which have come into my life, been used, and then donated or disposed of. It’s not that I’m much more wasteful than the average person (in fact as a practising minimalist I have less than most people) but it’s just a natural result of living a normal life—clothes wear down, favourite mugs break, books get read, gadgets die… eventually things get replaced. Repeat the process a few dozen times for everything I’ve ever owned and naturally one becomes less attached to each thing. Heck, I’ve even gone through another 1-2 bikes since that one was stolen (before you judge, I cycle everywhere, I don’t own a car). It hasn’t escaped my notice how extremely rich and privileged I already am to be able to live like this.

However, the most important factor is gaining an awareness of time passing, and having more important things in my life to occupy me as I grow older. My business, my health, my relationships with my partner, family and friends… they all take time and mental energy to maintain and grow but they are the things that matter to me the most. They make my life worthwhile and I would pay any amount of money to have them. It just doesn’t make sense to waste energy worrying about buying/keeping material stuff or fretting about small things that don’t matter in the long run.

All of this, I realise, is what a minimalist lifestyle is supposed to be about—not having less stuff for the sake of it, but having less because it means worrying less and enjoying more.

Minimalism gives us the freedom to separate the trivial from the vital, to let go of stuff so that we can get over one stupid stolen bike and go on to lead a a rich and meaningful life anyway.

On Perspective’ was originally published via Minimalist Meditations.

Written by Jessica Dang
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In Praise of Quiet Moments

by Jessica Dang

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by Jessica Dang

We tend to measure life by our memories. The most joyful or devastating, exciting or stressful, interesting or hard fought for milestones, from one to the next, they stand out the most in our minds.

These are the things we go out of our way to do, to plan for, to work for, to pay for. Advertising encourages us to fit as many ‘experiences’ as we can cram into our lives. When the big moment arrives, we take photos on our smartphones, upload to social media, even journal or tell our friends and children about it.

We remember these events for years, but everything else in between is forgotten.

What did you do on an typical Tuesday afternoon? Or a quiet Thursday evening? Or a routine Sunday morning? It may seem unimportant, but what if the ordinary in-between moments are just as powerful as the extraordinary ones?

Who knew that a regular day sitting on the sofa with my grandmother, half watching TV while sharing some fruit would be the last time I saw her alive? Nothing lasts forever, not even the mundane. Everything will pass, whether you notice it or not.

Indeed, it is a practice to be as grateful for the journey as the destination. It’s not easy to give our limited attention to the unremarkable moments, but they probably make up about 90% of our daily lives. If we live a good life with multiple journeys to multiple destinations, what kind of fulfilment would we have if we only appreciated 10% of it?

So maybe in a month’s time I won’t remember this moment—sipping my coffee as I write this, the smell of it waking me up to the sound of the city going by outside my window on this sunny July morning—but I can enjoy it right now, thoroughly and gratefully, for everything it’s worth.

On Productivity II — the power of focus

by Jessica Dang

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focus

So you’ve chosen the ‘right things to do’, now how do you get them done?

The answer is simple—focus on one thing at a time.

It sounds easy, but just think of how many tabs you have open right now. Even while you’re reading this, there are probably a dozen other things distracting you.

Your mind and body have limited bandwidth. Most things that need to be done properly require our full attention but very rarely do we give what we’re doing our fullest effort.

Instead, we spread ourselves too thin. I can’t tell you how many yoga classes I’ve had where I was supposed to be breathing with my movements, but instead I was thinking about work. Or how often I’m talking to someone but internally deciding what to make for dinner. Or when I’ve sat down to read a book but 30 seconds later I remember a text I’ve supposed to have sent…

Focus takes practice. It’s not something that you can easily switch on or off. You have to be willing to work on it and declutter distractions from your life—turn off notifications, cancel Netflix, outsource tasks, say ‘no’ more more often, delete those apps, lock the door, stay up later or wake up earlier to get quiet time.

When we try to do too many things at once, we do none of them well. Sometimes we’ll get by and no one notices our attempts were half-assed. But anything worth doing, the things that really matter, by definition are worth it because they’re hard, and need concentration, and the willingness to pursue them relentlessly.

So let us focus, not to get more things done, but to do things better. Life is too short to be mediocre.

‘On Productivity II’ was originally published via Minimalist Meditations.

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On Productivity — the difference between efficiency and effectiveness

by Jessica Dang

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Back when I was an aspiring career girl who thought the epitome of success was earning a Director’s title and a generous bonus package every year until I retired comfortably at 65, I used to be obsessed with productivity. How could I get more things done in less time? How could I fit more into my busy life?

After years of cramming more and more work and other commitments into each day until I barely had time to sleep, I became exhausted with the long hours and complete lack of free time I had to do the things I really enjoyed. I realised I had been going about it all wrong.

I used to think that doing more automatically meant living more, but that’s not true. Life shouldn’t be about fitting more of just anything into it. There will always be more things you can do to fill a thousand lifetimes. Instead, it should be about making time for the ‘right’ things and eliminating all the other stuff that doesn’t matter.

There is a difference between being efficient, versus being effective. One is about doing something that takes up limited resources (time, energy) with the least waste, and the other is about intentionally doing things that make an impact.

In other words, being efficient is about doing things right, while being effective is about doing the right things.

Productivity advice is too focused on the former instead of the latter. Doing things right is fairly easy. That’s what how-to books and productivity blogs are for. The harder thing is choosing the right things to do. We are swamped in work, meeting requests, invitations, the media, places to go, new things to try out, TV shows to watch… there isn’t enough time to do it all, even if you can do it all efficiently in the least time possible.

What counts as a ‘right’ thing? There’s no easy answer, but you’ll know deep down if what you’re spending your time on feels right. Is it important to you? Or important to someone you love? Are you enjoying it? Does it make you feel good? Are you making other people’s lives better? Is it short term or long term? Is it fun and challenging? Are you growing? Is it meaningful? What if you died tomorrow? Can you think of a better way to spend your time? Will you remember this day years from now?

If we pared down to the things that mattered the most then we would feel less FOMO, and wouldn’t need to be in such a hurry. There are some things that aren’t meant to be rushed. How unfortunate would it be if we didn’t have the time to take our time on things like making a delicious home-cooked meal, getting engrossed in a good book, or making memories with loved ones.

These moments are the stuff life is made of. Choose wisely, and enjoy every moment.

‘On Productivity’ was originally published via Minimalist Meditations.

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Dear Grandma

by Jessica Dang

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My dear mama, you passed away earlier this month.

You had been ill for a long time, so it wasn’t unexpected. At least you were surrounded by family when it happened. Everyone dropped everything to go to your house that night. There were a lot of tears.

You lived a hard and busy life, immigrating from Vietnam to England forty years ago bringing your ten children with you. With such a big family, your house always had people coming in and out to visit, to talk about everything and nothing, to eat and drink tea until late into the night. Weddings, birthdays, and Chinese New Years have always been hectic and wonderful and full of food and laughter.

In the end though, old age took over. You got breast cancer, and eventually liver cancer and other ailments that made you so weak you needed help with everything. We all did our best to take care of you, getting you the best treatment we could, but in the end, we had to let you go.

Growing up, you didn’t have much. You married a man, my grandfather, who was from a village in the mountains near the border of China and Vietnam. You had to have ten children because you were so poor you didn’t know how many would survive until adulthood. Some actually didn’t survive—as close as we all are, there are members of our family that I would never know.

So it’s no wonder you valued money so much. Having it meant the survival of your family, which was everything to you. When you all came to England in the 1980’s to look for a better life, everyone worked hard at the few years they had at school to learn English so that they could find work. My own father, who was 14 at the time you moved here, only had a single year of education. Those first few years were all about learning to survive in a new world.

Eventually everyone found their feet. All ten children became adults, found jobs or started successful businesses and married and had children. Some even went on to have their own children and you and Grandad became great-grandparents. Ten years ago, Grandad passed away and although you were alone without him, you were never lonely with all of us being there for you.

We started with nothing but now our family has more money than we could have imagined as refugees from a mountain village. You started a dynasty, but we haven’t forgotten our roots. Although money is useful, it isn’t the most important thing. To this day every one of us would do anything to support each other.

You were a minimalist by circumstance, not by choice. You didn’t have much, but what you did have and all that mattered were things that money couldn’t buy—good health for as long as possible, a loving family, and living a full and happy life. You had everything you ever needed, and I’m glad for that.

May you rest in peace.

‘Dear Grandma’ post was originally published via Minimalist Meditations.

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On Maturity — What would I tell myself if I could go back 10 years?

by Jessica Dang

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It was my 27th birthday this month. Although I don’t feel that old yet, almost every day I’m reminded of memes I don’t understand, trends I haven’t heard of, or technology I didn’t know existed. I feel a big difference between myself and ‘kids these days’. In fact, I have a brother who is 11 years younger than me, but it often feels like he’s from a different generation.

Amongst all of this change in the world, I realise there has been a lot of change within myself too. I wasn’t always so comfortable with not being up-to-date on the latest fashions and gadgets. Like most teenagers, I overcompensated for my self-confidence issues by trying in my own way to be as cool as possible. For me that meant having cool stuff like the latest iPhone or laptop to show off with. People would gather around me and it would make me feel better about myself, but only for a while. Obviously buying stuff wasn’t a long term fix for my insecurities. Those times sowed the seeds for the minimalist lifestyle I developed soon after.

As a teenager I dreaded getting older, but a decade later I’m in a much, much better place. The biggest lesson I learned is to not give a f*ck. Who cares where I live, what job I do, or whether I have the latest iPhone? No one! Or at least, no one cares nearly as much as I thought.

Realising that and being okay with it has been huge. Once I let go of other people’s expectations of me, I was free to do whatever I want—it’s unlikely people care enough to judge me for it, and even if they did, who cares! Certainly not me.

Hence living minimally to avoid debt and save up enough to be able to quit my job in my mid-twenties to start my own business. Could I have done that if I was concerned about what people thought of me? Probably not. I would have felt too self conscious to say no to spending $100 on a night out, worrying about what outfit I was wearing, or which car I was driving, or staying in a luxury hotel so that I could instagram it, instead of saving up the start up capital I needed to be free of those kinds of traps.

Two years on, I only work a couple of hours a week but earn twice as much as I did in my soul-sucking job. I have the freedom to pursue anything I want to. I can sleep/read/travel whenever I want, and thanks to not being tied to a desk all day, my health is better than ever. On top of that, I can give more to people and causes I care about, because I have more to give.

It wasn’t easy getting here, but neither was it that hard to be honest. It was a series of small sacrifices and good decisions that paid off. I only wish I started started sooner. That is, if I could go back ten years and give advice to my 17 year old self, or indeed to my younger brother now, I would say, “Hey, you. Stop worrying so much about what other people think, they don’t know all the answers themselves. Breathe. If you do what you feel is the right thing, you’re going to find happiness. I promise.

‘On Maturity’ was originally published via Minimalist Meditations.

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On Vanity — how valuable things can actually be worthless

by Jessica Dang

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Why do we buy stuff? Not everything we buy is useful, so there must be other reasons why we work so hard to buy things.

Maybe it’s because we find a sense of happiness or satisfaction when we buy something new, but we all know that that feeling soon fades (even though we almost never remember this every time we buy something new).

Why we buy stuff has less to do with the object itself than with ourselves. When we buy expensive clothes, the newest gadgets or a flashy car, it’s because we believe it will give us recognition from the people around us—we’ll ‘show’ them how successful we are so that they’ll accept us, or even love us.

Humans crave recognition. To be part of a group, or at least not be in some else’s shadow. Most people are more influenced by what other people think of them than what they actually want ourselves.

Think about it—if everyone in the world disappeared tomorrow and you were the only one left (apart from the upset you would have from losing your friends and loved ones) what would you do now that you could have anything you desired?

You could just walk into someone’s mansion, even the most beautiful castle, and have it all to yourself. You could pick and choose anyone’s finest clothing and jewellery, even put on the crown if you wanted to! Drive a Ferrari, swim in bank notes, have hundreds of iPhones. But after a while, what would happen? With no one to impress, the chances are that you’ll find somewhere more convenient and easier to maintain than a huge house, you’ll wear clothes that are more comfortable, you’ll drive something more practical and you’ll get bored of the latest gadget.

Things you thought were worth a lot won’t matter as much any more. You’re the last person on earth, there’s nothing left but to find something worthwhile to do, something that makes you happy, not anyone else.

If no one was around to validate our existence, as society has defined by how much stuff we have, we would wouldn’t actually care about it. Hardly anyone would actually choose to have their life’s purpose revolve around buying things, but so many people do exactly that every day, without stopping to question it.

We don’t have to go as far as erasing every other person on Earth. If we just cared a little less about what other people think, we’d care a little more about what we want, and what really matters to us.

‘On Vanity’ was originally published via Minimalist Meditations.

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The most important thing to minimalise in 2018

by Jessica Dang

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http://www.dreamstime.com/stock-images-hot-air-balloon-festival-image18811474

 

Having lived a minimalist lifestyle for nearly ten years (by my definition anyway), I don’t have a lot of things left to get rid of that I don’t use or need.

But there is one big thing that I can do with much less of this year—distractions.

I have noticed lately that I have been finding it more and more difficult to focus solely on a single task.

Whenever I sit down to do some work, whether it’s reading, writing, studying etc. I hardly last 10 or 20 minutes before I’ve got a tab open on something new, or I’ve absent mindedly moved onto something else without realising it. Before I know it, it’s 9pm and I haven’t gotten much done that day.

Distractions come in so many forms. It’s impossible to get rid of them all, but there are some major ones that would make a big difference if I were to reduce them as much as possible.

Distractions 

  1. Daily news. Given the political environment, following the news last year always made me angry/upset/confused. There’s always something bad going on in the world, and there’s a line somewhere between being informed about world events, and knowing too much that it’s just upsetting.
  2. Social media. Even though I stopped following people on my feed years ago, I ended up replacing them with news sites that used to be informative, but have degraded to pointless videos about things that don’t add value to my life.
  3. TV. Every time one show finishes, and I think I can take a break from TV, another one starts up again and I end up watching about 4-8 hours of TV a week which I can do with halving. There are many better things for me to do with an hour each day.

Minimalise by…

  1. Disabling all notifications
  2. Deleting news bookmarks from my computer and phone
  3. Turning off the colour to my iPhone so it looks boring
  4. Logging out of social media from all browsers
  5. Turning my computer off if I intend to do something else
  6. Deleting all social apps from my phone
  7. Keep a notepad to look things up later instead of doing it instantly
  8. Unsubscribing from Netflix
  9. Letting go of TV shows even though I haven’t finished them
  10. Any other 100+ ways that’s not actually difficult to do

To be replaced with…

  1. Face to face interactions. I want to spend more time connecting with people in person, including friends and family, and also I will make an effort to network more this year with people who up my game, in business, in life, emotionally, and intelligently.
  2. Learning/investing in myself. Every dollar I have ever spent on a book has been well worth it, so I attended a training workshop this month that costed a lot of money but was worth every penny. Now I’m on track to make 10x the cost of that seminar back. I’m convinced the more I learn, the more I earn.
  3. Deep work. I want to reach my goal of reading 52 books this year while making better notes so that I retain more of what I learn. I also want to spend more time writing for the both Minimal Student and Minimalist Meditations, and updating my journals on a weekly basis instead of monthly.

It all comes down to wanting to do things with intention and awareness. If I’m distracted less, I can focus more on doing all the things I want to in the time that I have.

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This year in review and the most popular posts of 2017

by Jessica Dang

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It’s the end of another year. As much as one can make the best of things despite all of the terrible things that have happened around the world this year, I’ve had a fairly good twelve months. I ran my third marathon in my fastest time, travelled to eight different countries, read 52 books, and doubled the size of my business.

During all of this, I’ve been able to keep up with writing at least one post per month for both Minimal Student and Minimalist Meditations, which wasn’t easy but I’m glad I did it. Here are some of the most popular posts of the year, plus the latest Meditations posts:

  1. Minimal Student is graduating
  2. Minimalism and the Pursuit of Perfection
  3. 5 Common Myths about Minimalism
  4. A Minimalist Guide to Money and Investing — Part IPart IIPart III

Minimalist Meditations — October to December

“As with most things in life, preaching about something only makes people more resistant to the idea.”
— How to guide people towards a life of minimalism: Minimalist Meditations on Guidance

“What would we do if we weren’t afraid of what other people think?”
— How to use power as a tool: Minimalist Meditations on Power

“Some of the happiest human beings are those who have the least.”
— You’re already born lucky: Minimalist Meditations on Generosity

If you enjoyed these, you can subscribe via RSSemailTwitter or Facebook. See you in the New Year.

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A Minimalist Guide to Money and Investing — Part III

by Jessica Dang
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This is the third part in my Minimalist Guide to Money and Investing. Here is Part I and Part II. You can also read about my Minimalist Meditations on Wealth and Money. It takes me a long time to write these posts, if you find them helpful, let me know in the comments below or on Twitter or Facebook.

Reminder: I am not a financial adviser. What I talk about below may not be best for you or your situation, please seek professional advice or do your own research before you put real money on the line. Short of writing an entire book,I can only give you the basics and tell you what I’ve done and what has worked for me.

4—Investing and Income

So you’ve paid off your expensive debt, and have a small nest egg saved for emergencies, what do you do next?

You put your money to work. Think of each dollar or pound as a little worker bee—you can let it stay in the bank and do nothing, or you can send it off to go recruiting for more dollars.

The best thing about making your money work for you, is that you don’t have to do it yourself. The more you make your money work, the more passive income you have, which means the more time and freedom you have for important things.

The aim is to achieve financial independence—this means earning enough money passively to cover your essential living expenses. Once you do that, you no longer have to work if you don’t want to. What your income has bought you is the freedom to choose. You can simply retire, or do whatever you want (painter? teacher? glassblower?). You can choose to work freelance, or part time, or even volunteer to do it for free because you no longer need the money.

When it comes to investing, the two most important things to know are:

  • how to compare yields across different types of investments 
  • how to calculate risk and reward

It is quite difficult to get precise figures, because you can’t always have perfect information and you can’t predict the future, but you can make very educated guesses which will inform you on which investments to choose.

Yield means how much money you can get back for the amount of money you put in. If you can work out the yield for any investment, firstly you can see if it’s above inflation (which is 2-5% in most countries) so that you know that you would be at least making the amount of value your money is losing just sitting in the bank (I highly recommend reading up about how inflation works against you and your savings) and secondly you can compare it to other types of investments to see if it’s worth the risk…

Risk is the chance that you will lose or make money. Risk and reward tend to be inverse, in other words, if something is easy and safe to do, you’ll get a small (but safe) amount of return, but if something is riskier or requires more research and knowledge, you’ll be rewarded with higher returns if it turns out that you were correct.

A few important points:

  • Investing is not gambling—even though risk is involved, if you choose your investments wisely, the risks should still be very low. The riskiest investments you should be willing to consider are ones that you can either make nothing or at most only lose a small part of your capital. You should not consider investments that are not backed up by anything of value, or where you can lose everything—that is gambling.
  • Diversifying—having many different types of investments is how you can balance risk and reward. The bulk of your investments should be safe, even if they give low returns, with a few medium and higher risk investments in the mix to add to the returns. How you balance the ratio of low/medium/high risks depends on your own risk appetite, how much money you have, what your financial goals are, and how close you are to retirement age (when you can no longer work even if you wanted to).
  • Getting yields of 5-10% is very respectable. A lot of people might think that getting £10 for every £100 invested is a very small amount (“But it’ll take 10 years to make back my money!”) but the point of investing isn’t to make back all of your money as soon as possible, that’s what owning a business is for (breaking even on what you’ve spent and then making a profit for all the time and effort you are putting into it). Investing for a passive income, on the other hand, is about getting the money that would have otherwise earned nothing as savings working for you. £10 might not seem a lot, but if you invested £10,000 with a 10% return per year, you would be earning £1,000 basically for free without doing any work.
  • Compounding is the 8th wonder of the world. Furthermore, if you reinvest what you earn, you can earn interest on your interest and it wouldn’t take you 10 years to get your money back. In the example above, you may earn £1,000 in the first year, but if you add it to your initial investment of £10,000, making £11,000, 10% of that is £1,100, and if you add that on you’ll have £12,100 invested which will yield £1,210 etc. So you’ll be making money on your money that made money. Compounding is such a powerful force that if you achieve 10% returns per year, it would only take you 7 years to double your initial investment (£10,000 becomes £20,000).

So you can see that the more and the earlier you can invest, the more quickly you’ll achieve financial independence. The step after that is financial freedom—when you earn enough to cover both your essential and non-essential (i.e. ‘luxury’) living costs.

One of the easiest and safest ways to start to put your money in a low risk, low cost fund, such as an Exchange Traded Fund which now, thanks to the internet, you can find an abundance of low-cost platforms for online (Google ‘ETF’ to find out more about what they are). You can start with just a few dollars and earn anything form 3-5% return on your money. Considering inflation is about 2-3%, you’ll not only be preserving the value of your savings, which would otherwise be worth less and less over time, but you’ll also earn a tidy amount of profit on top.

There are hundreds of different ways to invest your money, and I won’t be able to go over all of them, but I can tell you what I do. Through all of my research, I have found that for me and my situation, property is the best investment for several reasons:

  • Location—I live in an area where rental demand is high, but supply of housing is relatively low (this means with the rental income I can achieve yields of of 7-10%).
  • Economics—there is a very healthy employment level and growth prospects for this area, and the other areas that I am investing in.
  • Leverage—I can leverage my investment by applying for a mortgage (ie. instead of having to save up £100,000 which would take a long time, I only have to save £25,000 which is much less, and borrow the rest, yet still receive 100% of the rental income). Property is one of the only investments that banks will lend you money for.

To give you a concrete example and show you it can really be done, I own a two bedroom apartment that costed £125,000. I supplied the 25% deposit of £31,250, and got a mortgage for the other 75% of the value at £93,750. The market rent is £850 per month/£10,200 per year (£10,200/£125,000 = an 8% yield). Maintenance and other expenses amount to about £120 per month, and the mortgage costs £310 per month. This leaves a profit of £420 per month, which is £5,040 per year—a 16% return on investment of £31,250. Best of all, after doing the initial paperwork, it’s all passive income.

On top of that, at the time of writing, the value of the property has gone up to about £160,000 so I have also gained £35,000 in value in just two years, and in the future I can refinance it to get these funds out to reinvest. And this is only one of the properties in my portfolio. At the moment, I have achieve financial independence, which is why I was able to quit my job, but I intend to reinvest 80%+ of all my passive income over the next 5-10 years to increase my passive income until I’m able to achieve financial freedom.

I’m not telling you all this to show off, and I’m not necessarily advocating property as an investment for everyone. It’s just an example to show that with a minimalist lifestyle and a bit of hustle, I was able to go from nothing to something like this. If you set yourself an income goal that depends on how much you can live on a year, even if you were to have more than a few luxuries, say £30,000 per year, you can see how just by owning a couple of investments like the one earning £5,000 per year can realistically get you there.

Don’t wait to win the lottery. There are opportunities to make passive income everywhere. You’ll never be free if you slave away at a job you hate, trading hours of your life for cash, and you’ll never make it just by wishing for good luck. You have to take control of your finances, because it’s not about the money, it’s about freedom.

The magic formula for success is: Education + Action. This post only briefly covers things that took me months to learn, and then more months to implement. If there’s anything you didn’t know about or didn’t understand—feel free to ask me in the comments, but most importantly, do your own research. Here are some resources that I’ve found extremely helpful:

The 4-Hour Work Week: Escape the 9-5, Live Anywhere and Join the New Rich

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This book was life-changing for me when I discovered it when I was twenty years old. It introduced to me to the art of setting up a passive income business so that I wouldn’t have to work for money. Not only is it possible to earn money while you sleep, but it is perfectly achievable if you want to and believe you can do it. It also introduced to me the concept of taking retirement breaks now (doing things like travelling, volunteering, spending time with family etc.) without having to wait until I’m 65. I also reread this book every year to remind me not to let my business become another job.

How to Own the World: A Plain English Guide to Thinking Globally and Investing Wisely

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A lot of investing books contain too much jargon and formulae that I don’t want to get into as someone who doesn’t want to be investing full time. This book is the most approachable one I’ve found for beginners, and I recommend it to people who are getting started. It explains in more detail the things I’ve mentioned in these posts about the basics of investing—why you should do it and how best to choose your investments wisely. It teaches you how you can compare different types of investment and how you can decrease risk by basically buying a bit of everything (i.e. ‘owning the world’).

The Little Book That Still Beats the Market

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This book is a great introduction on how to assess businesses to see if they’re worth investing in. Before this book, I stuck to ETFs because I didn’t think I would be capable of analysing company’s accounts and putting it all into complicated ratios and so on, but after reading this I realised that I can rule out a lot of the work by comparing some fundamentals to narrow down the number of companies I’m looking at. I genuinely believe the advice I got from this book will make me a lot of money in the future.

 

Blogs: Rockstar Finance links to all blogs worth reading in personal finance. I recommend signing up to their newsletter which I receive and read every day. In fact, if you liked this article, please submit it to share with others!

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