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Many dream of financial freedom but feel trapped in their 9-to-5 grind. The good news? It’s possible to build wealth and secure your future — even on a modest income.
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British entrepreneur and personal finance expert Mark Tilbury, with more than 12 million followers across YouTube, Instagram and TikTok, recently shared his five-step roadmap to financial independence.
Tilbury’s approach isn’t about overnight success; it’s about discipline, effort and time. Here’s how it can transform your financial life.
Define your ‘freedom figure’
The journey starts with setting a clear financial goal — your “freedom figure.” This is the amount you’d need to live comfortably without relying on a traditional job. It serves as both motivation and a guide.
Or in other words, how much will it take to be able to retire early and sustain your lifestyle?
Actually figuring out how much you need to retire can be challenging. Americans aged 18 and older estimate they’ll need approximately $1.26 million to retire comfortably — a 20% increase from the $1.05 million reported in 2021, according to Northwestern Mutual.
Finding your financial footing is tough, but a good advisor can help define your freedom figure to help you retire comfortably
You can match with a vetted financial advisor near you for free through Advisor.com. Simply answer a few questions about your current financial situation and your goals, and Advisor.com will match you with a FINRA/SEC-registered advisor best suited to your needs. Advisor.com’s experts are registered fiduciaries, which means that they have to act in what they believe to be your best interests.
From here you can read reviews, learn more about their service offerings and set up a free introductory call with no obligation to hire to see if they’re the right fit for you.
Optimize your spending
Once you have your goal, the next step is to optimize spending and find ways to save without sacrificing your quality of life. Tilbury suggests a few practical strategies:
Car hacking: When you’re shopping for a new car, buy one used instead of new to avoid steep depreciation, and don’t forget to factor in monthly insurance expenses while budgeting.
With OfficialCarInsurance, you can compare rates offered on auto insurance policies by reputable providers near you in just two minutes. Get started for free, and find auto insurance rates as low as $29/month.
Brand hacking:* Swap pricey name-brand products for generic alternatives with comparable quality.
House hacking: Rent out a room or basement in your home to offset mortgage costs and build equity faster. Lower your home insurance expenses by shopping around and comparing rates for free with OfficialHomeInsurance. Shopping around for the lowest possible cost can help you save roughly $482 per year.
Tax hacking: Maximize deductions and credits to lower your tax bill, freeing up more cash for investments.
Deal hacking: Try adopting a negotiator’s mindset. You may not be able to change the price on everything, but many purchases — vehicles, retail goods and even your internet bill — can be negotiated if you’re willing to engage the seller. Asking for discounts can lead to surprising savings.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Build your credit
A good credit score is essential for accessing favorable interest rates on loans, mortgages and credit cards. Building and maintaining a strong credit score can save you thousands of dollars over time.
The first rule is to make all your payments on time, including credit cards, loans and utility bills. Late payments can negatively impact your credit score. Paying down outstanding debts — such as credit card balances or student loans — will improve your debt-to-income ratio, an important factor in your credit score.
If you have significant debt and are struggling to boost your credit score consider consolidating your outstanding loans into a single loan at an ideally lower interest rate. This way, you don’t have to worry about managing multiple deadlines or accumulating a host of different interest charges.
If you’re struggling to pay down your debts, there are a few things you can do that might boost your financial situation..
With home values higher than ever, you can make your home work harder for you by making the most of your equity. The average homeowner sits on roughly $311,000 in equity as of the third quarter of 2024, according to CoreLogic.
Rates on HELOCs and home equity loans are typically lower than APRs on credit cards and personal loans, making it an appealing option for homeowners with substantial equity.
Unlock great low rates in minutes by shopping around. You can compare real loan rates offered by different lenders side-by-side through LendingTree.
Just answer a few simple questions, and LendingTree will match you with up to 5 lenders with low rates today. Terms and Conditions apply.
Diversify your income
Relying solely on a single paycheck is risky. Diversifying your income streams can accelerate your path to financial independence.
Tilbury recommends starting a side hustle, like freelancing or selling a product based on your skills or passions. Multiple income sources reduce financial vulnerability and can help you save or invest more aggressively.
Make your money work for you
Tilbury’s final step is to put your money to work. Investing is key to growing wealth over time and achieving financial freedom. Look for opportunities where you can park your hard-earned money in assets that offer passive income streams like:
Dividend-paying stocks: These provide regular income while allowing your investment to grow.
Rental properties: Real estate can generate consistent cash flow and build long-term equity. Crowdfunding platforms like Arrived can help you invest in quality single-family homes and vacation rentals with just $100 — and you don’t even have to be a landlord.
The best part? You can generate passive income in two ways with Arrived. You can receive monthly dividend payouts from rental income generated and any capital gains if the property is sold at the end of the hold period.
Peer-to-peer lending: Platforms that facilitate loans between individuals can offer attractive returns.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
