Khaberni - Ten years ago, Brennan Schlagbaum and his wife Erin were living under the burden of heavy debt amounting to $304,000, including student, housing, and consumer loans. Today, they have become millionaires before reaching thirty, with a wealth exceeding 4 million dollars.
However, the transformation was not the result of a stroke of luck or a sudden inheritance, but the result of 8 decisions Brennan described as "simple to the point of naivety," which were sufficient to completely change their financial life course and achieve financial freedom.
Brennan, who now works as a financial advisor and founder of the platform "Budgetdog" specializing in financial literacy, considers money and marriage as two sides of the same coin, and balance must be created to build a long-lasting successful relationship. His simple decisions were as follows:
1. Budgeting... The starting point.
In 2016, the couple decided to confront their financial reality. They downloaded their bank statements for three months and built a "zero-based" budget that ensured directing every dollar towards a specific goal, whether to pay off debt or to invest.
2. Saving at a rate exceeding 20%.
Brennan believes that financial freedom requires sacrifices, especially in the youth stage. "People spend lavishly too early," he says, noting that cutting expenses in their twenties gave them greater freedom in their thirties.
3. Paying off all debts.
Within 5 years, they managed to pay off all their debts, including the mortgage. This decision reduced their monthly expenses by 40% and opened the door to more effective investing.
4. Increasing income.
Despite his job at "Deloitte" as a certified public accountant, Brennan decided to embark on an entrepreneurial adventure by launching his own project "Budgetdog", which later became a major source of income and long-term investment.
5. Resisting "lifestyle creep."
Since 2015, their annual expenses have not exceeded $60,000, even though their income has tripled. "If we spent more every time we earned more, we would still be in debt," according to Brennan.
6. Boring investment... but safe.
The couple stays away from controversial investments or those they do not understand, relying on index funds like VTI and VXUS, believing that "boredom" in investing might be the key to wealth.
7. Automation... the enemy of emotion.
Brennan says the difference between the average market return (9.5%) and the average investor's return (3.6%) is emotion. Therefore, they automated their investments to avoid hesitation and emotional reactions, reducing money management time to just 30 minutes a month.
8. Continuity... the secret to real success.
Brennan said, "We are not wealthy because of our project, our savings rate, or even our debt repayment," adding, "We are wealthy because we started 10 years ago... and we haven't stopped since then."
