This is How I Reached Financial Independence

If I were to teach a class on how to become financially independent, I would start the class by showing them this picture. Those stairs led to my old studio apartment located on an alley above a garage. My home was the first door on the left. Living in that small apartment allowed me to live well below my means. I stayed there for five years until the new owner increased my rent by approximately 30%.

I would also show the class this picture where I bought this small 789-square-foot, one bedroom condominium for $91,000 in 1985. I lived there for 35 years. It allowed me to save a lot of money by keeping my housing costs low.

I don’t expect everyone to live a spartan lifestyle like me. But living below your means is the first important step toward financial independence. You can’t reach financial freedom without spending less than you earn.

For most people, your home is your biggest expense. If you can keep your housing costs low and stable, you can save a lot of money over the years. You can actually reach a point where your salary is going up and your home expenses are going down. That’s why buying an affordable home can be one of the best investments you ever made.

You can read my other articles about money and retirement at HumbleDollar https://humbledollar.com/author/dennis-friedman/.