She Strengthens

The Road to Financial Independence: Insights from a 33-Year-Old Retiree

James Mattson, a successful entrepreneur, achieved financial independence at the tender age of 33. His journey began with a robust savings account, built on the foundation of frugal living and smart financial decisions. After graduating from college, James worked in a low-cost-of-living area, earning approximately $52,000 per year. When he got laid off in 2008, he had a comfortable cushion to fall back on.

A Chance Encounter Leads to a Lucrative Business Venture

James’ life took a dramatic turn when he met his friend Brad, who was working in construction. Together, they embarked on a business venture, buying houses, renovating them, and renting them out to college students. Their partnership flourished, and by 2013, they had amassed a portfolio of 27 houses, which has since grown to 71 properties.

The Secrets to James’ Success

In a recent interview, James shared valuable insights into his journey to financial independence. When asked how many hours he works per week, James revealed that he has automated most of his business, allowing him to work only when he chooses. He typically spends two to three hours a day responding to emails, viewing properties, and handling paperwork.

From Layoff to Financial Freedom

James never set out to achieve financial independence; it was a natural consequence of his low expenses, high savings, and successful business venture. He attributes his success to taking calculated risks and having a robust safety net. James believes that his most important financial decision was to not be afraid of risk, which allowed him to seize opportunities and grow his business.

The Power of Community College

James credits his decision to attend community college for his financial prudence. By doing so, he saved significantly on tuition fees, graduating with minimal debt. He advises students to consider community college as a viable option, especially if they’re not financially prepared to take on heavy student loans.

Renting vs. Flipping: A Tale of Two Strategies

James and Brad chose to rent out their properties instead of flipping them, betting on the appreciation of housing prices. While they did flip some homes to fund their business, they regret not holding onto those properties, which have since increased significantly in value.

Advice for First-Time Homebuyers

When asked about saving for a down payment on a first home, James advises caution. He believes that people often overpay for homes in expensive cities, and suggests looking for rundown properties that can be renovated to suit one’s needs. James also emphasizes the importance of balancing retirement savings with after-tax money to fund business ventures.

Debt and Risk Tolerance

James is comfortable taking on debt to purchase properties, but only if the ROI is substantial and the debt is manageable. He knows entrepreneurs who have taken on significant debt to build their portfolios, but cautions that it’s essential to be comfortable with the level of risk involved.

James’ story serves as a beacon of hope for those seeking financial independence. By making smart financial decisions, taking calculated risks, and being open to opportunities, anyone can achieve their financial goals and live a life of freedom and purpose.