TLDR;
This video shares a personal journey of achieving financial freedom and becoming a millionaire before the age of 30, even with a minimum wage salary. It emphasizes the importance of managing expenses, saving consistently, and investing wisely, rather than solely focusing on increasing income. The journey highlights key principles such as paying yourself first, differentiating between needs and wants, and the power of compound interest.
- Focus on system, discipline and patience.
- Start small and be consistent.
- Financial freedom is about choices and peace of mind, not just accumulating wealth.
Introduction [0:00]
The speaker recalls feeling financially strained at the end of each month, despite having a minimum wage salary. They address viewers who may feel similarly, believing that accumulating significant savings is only for the fortunate. The speaker promises to share concrete steps that can shift one's perspective on money, similar to their own experience.
The Initial Struggle and a Turning Point [0:52]
The speaker used to view the idea of becoming a millionaire as unrealistic, especially with a low salary. They felt stuck in a cycle of earning, spending, and panicking, often blaming their financial situation on their income. A conversation with a senior colleague, who seemed financially stable despite a similar salary, provided a turning point. The colleague's advice was that the problem wasn't the income, but the system of managing money.
Step 1: Tracking Expenses [2:30]
The initial step involved meticulously tracking all expenses, no matter how small, using a simple mobile application for a month. The speaker was surprised to find that seemingly trivial expenses added up to a significant amount. Much of their money was spent on non-essential items like snacks, transportation, and unused subscriptions. This realization highlighted a spending problem rather than an income problem.
Step 2: Budgeting and Saving [3:40]
The speaker created a realistic budget, reducing the frequency of non-essential spending without completely eliminating it. This small change led to saving Rp. 500,000 in the second month, a significant achievement for someone who usually struggled to make ends meet. They implemented the "pay yourself first" rule, saving at least 10% of their salary into a separate, inaccessible account immediately upon receiving it. This forced them to become more creative in managing their finances and differentiating between needs and wants.
Building Momentum and Changing Mindset [5:38]
In the first year, the speaker saved around 6 million Rupiah. While not yet a millionaire, they had established a solid financial foundation with a working system and positive habits. They stopped comparing themselves to others on social media and shifted their focus from appearing rich to actually becoming financially secure. Discipline was redefined as choosing the pleasures that were most important, such as the satisfaction of seeing savings grow over momentary indulgences.
Increasing Income and Investing Wisely [6:43]
The speaker started seeking additional income opportunities that didn't sacrifice their rest time, such as freelance writing. They invested all extra income into savings. As their finances improved, new opportunities arose due to a clearer mindset and reduced stress about bills. By the second year, savings reached 40 million Rupiah, leading the speaker to explore investing, starting with low-risk money market mutual funds to combat inflation and learn investment concepts.
Living Below Means and Diversifying Investments [8:26]
The speaker avoided increasing their lifestyle with each salary increase, instead choosing to live below their means and increase their savings rate. They prioritized financial freedom over social validation. In the third year, they diversified investments into fixed income and mixed mutual funds, emphasizing patience and consistency. They used dollar cost averaging by investing a fixed amount regularly, regardless of market conditions, and maintained a separate "dream account" for medium-term goals to balance their life.
The Achievement and the True Meaning of Financial Freedom [10:10]
By age 28, in the fifth year, the speaker's total assets exceeded 1 billion Rupiah. This achievement brought a sense of calm and gratitude, resulting from consistent small decisions. They emphasize that financial freedom is not about buying anything you want, but about having the ability to say no without fear and having peace of mind.
Key Lessons and Advice [12:07]
The speaker highlights that money is a tool for achieving a desired life, providing choices and opportunities to pursue passions and help others. They advise starting now, regardless of income level, and emphasize the power of the snowball effect and compound interest. They stress the importance of appreciating the process, viewing savings and investments as buying a freer future self.
The Importance of Environment and Continuous Improvement [13:53]
The speaker underscores the significance of surrounding oneself with like-minded individuals who share similar financial goals. They encourage learning from mistakes, avoiding panic, and staying away from get-rich-quick schemes. Regular financial reviews are essential for tracking progress and adjusting strategies.
Conclusion: A Call to Action [15:55]
The speaker encourages viewers to believe in their ability to change their financial destiny through consistent, small steps. They emphasize that financial goals are personal and that managing finances is a form of self-care. They advise focusing on one's own path and celebrating progress, no matter how small. The speaker now works out of passion, with money being a bonus, and encourages viewers to share the video and commit to one small step towards their financial journey.