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- My dad and I read “First to a Million” to learn more about financial independence.
- I learned that early retirement is possible and that one can become financially independent without going to college.
- I also learned house hacking strategy and the importance of organization.
A few months ago, my father and I read the book “First in a Million: Teen’s Guide to Financial Independence,by Dan Sheeks, as part of our homeschool program. We have also read other books on finance, but none of them have stood out to me as much as this one.
Reading it for the first time at 16, I learned four things in particular:
1. It’s possible to retire years earlier than planned
One of the first things we learned in “First to a Millionwas the concept of FI, which stands for “financial independence”. financially independent means you have enough money saved that you don’t have to work if you don’t want to.
If you are FI, you can also be FIRE, which stands for “Financial Independence / Early Retirement”. I don’t know yet if I want to retire early, but it would certainly be nice to have that option. The book outlines the four mechanisms of FI:
- Earn more: Work harder and smarter to earn more money now.
- Spend less: Earning more money isn’t worth it if you can’t control your spending. By spending less on unimportant things, you ensure that you have money left over for the things that are important to you.
- Record the difference: If you regularly save the difference between your income and your expenses, you have emergency savings to lean on if you need it.
- Invest smartly: If you don’t want to work the rest of your life, you need a way to grow the money you already have. This is where investing comes in. It’s a great way to grow your money, if you do it right.
The four mechanics of FI are really meaningful to me because I think they really help break down something that might seem a bit confusing into a few simple steps.
2. There are alternatives to college
“First to a Million” explains that there are alternatives to college. Growing up, we mostly hear that we need to get good grades in school, go to a good college, and work until we’re 65 or older.
But that’s not the only way to do things. There are many other ways to make money, like starting your own business or taking a job that doesn’t require a college education.
3. House hacking is one way to start
Another thing that I really enjoyed learning is called “house hacking”. House hacking involves renting out part of your house and using the rent you receive to pay your mortgage. You do this until you essentially live there for free.
I know someone who bought an apartment building, lived in one, and rented out the others. Seems like such a great way to start your FI journey. You can live in a place almost for free, and you might even earn some money every month.
4. It’s important to get organized
My family has always been very schedule oriented and organized. One of the ways we do this is by using an application called Todoist to keep track of what we need to do each day. You can set tasks for yourself and check them off when you’re done. It really helps me stay organized and gives me the satisfaction of getting things done.
You might be the smartest person in the world, but if you’re not organized it’s much harder to get things done. Behind “First to a million“, there’s a checklist of things to do to become an FI, starting in your sophomore year of high school. There isn’t always a set set of exact steps to becoming an FI, but this checklist really blew me away. helped wrap up and start my FI journey.
I think the best thing about “First to a Million” is that each chapter has an example of someone who is either already financially independent or on their FI journey. I loved hearing these stories of real people who were able to work hard and achieve their goals. I learned so much about finance reading this book, and I believe that one day I will also be financially independent.