Set for Life Book By Scott Trench.
(Set For Life Book Summary)
Learn How To Be Financially Free
Financial Freedom is called that stage. If you have achieved So you will continue to get this much return or income from your assets. That you will never need to work again. You can go wherever you want, whenever you want. Which is no less than a dream for a person doing a job. Today, you are going to know how to get Financial Freedom and set up your life. (Set For Life Book Summary)
Today’s book – Set For Life, written by Scott Trench. In this you will know how you can be financial free. This is one such book. In which the author guarantees. If you follow their given 3 steps. So no matter what stage you are on. do anything. How much money do you earn? It doesn’t matter. But you will be financial free in 5 to 10 years. Then every month, that much money will definitely come to you. as much as you spend. (Set For Life Book Summary)
Financial Freedom is what it is. When you don’t have to do anything. Without working, you get money. We spend our whole life doing job. We think that let’s get to work today. Tomorrow when the money will come. Then we will also have a lot of money. At that time, we will buy happiness from him. Will live happily Buy a good car and a nice house. Then you will be able to live your life in a better way. But in reality this does not happen. Look at 90% of the people.
So he keeps doing his whole life, job. His whole time goes like this. which he gives to others. Those people buy their time. Then in exchange for that time, give them some money. which you spend. But if you become financial free at any age. Then you don’t have to work. (Set For Life Book Summary)
With your investment, so much money will come. In which your lifestyle runs very well. Then you can live your life on your own terms. You can enjoy your life well. Authors say that if you follow these 3 steps in your life. So in 5 – 10 years, you will be financial free. That much will definitely start coming to you. How much does your entire month cost?
(Set For Life Book Summary)
Step 1 – Save $25,000.
Scott says that if you want to be financial free. So first of all, which step you need to take in life. That is, you should save $25000. $25,000 means around 18 to 20 lakhs in Indian currency. But if you look at inflation. So around 30 to 35 lakhs, if you save. So much better. (Set For Life Book Summary)
Author to save this amount, so speaking. So that you can buy a house of your own. The house should also be a multi-family home i.e. Duplex or Fourplex. Why do you want to buy a house? You will know this later. To save this amount, the author advises – Be Frugal.
Being stingy does not mean that you should stop eating and drinking. Rather skimp on those things. Which does not add value to your life. It does not give you true happiness. You will save. So the tax system will also support you. Because you save your after tax income only. It does not happen that you have to pay tax on your savings too. (Set For Life Book Summary)
Save more than half your income every month. If you are earning ₹50,000 a month. Then you should save more than ₹ 25,000. Stop spending money on all such things. Which are not adding any value to your life. Such as Junk Food, Smoking, To Much Alcohol etc.. These things do not add any value to your life. (Set For Life Book Summary)
Rather, it leaves no stone unturned to make you more sick. Due to which your remaining savings can also be wasted in going to the hospital. Spend money only on good and valuable things. Like a good home cook meal, an online course or education to enhance your skills.
“Cut spending money on anything that does not bring you happiness and always focus on why”
Why are you saving? Why are you saving money? Keep the purpose of your financial freedom clear. Feel proud on this. To complete this stage, do whatever you can. Like take tiffin to the office. So that you do not have to buy lunch separately. (Set For Life Book Summary)
Find a cheap apartment. So that on rent, you can save a lot. Take your apartment or room at walking distance from your office.
By which the cost of traveling or cab can be saved for you. This will also save a lot of your time.
(Set For Life Book Summary)
Set For Life – Save on Big Expenses.
An average person spends about 80% of his income on Rent, Transportation, Food and Insurance and Health care. In which insurance and health care are essential things. But on Rent, Transportation and Food, you have to save. You have to save more than 50% of your income. So that as soon as possible, the first stage of your Financial Freedom or set for life, is completed. (Set For Life Book Summary)
Your apartment should be affordable. It should be at walking distance from the office. You have to find a roommate for yourself. With which you can share your rent and food expenses. By doing this, you will save a considerable amount. An average person spends 5% of his income on entertainment.
Like TV bill, Netflix or Amazon prime subscription or going to watch movies. On these things, both your time and money are wasted. If you have taken this subscription. So you can reduce them. Also, subscribe for a month or two in a year. Don’t waste money buying movie tickets. By which the savings will be even more. You will have more time left for productive tasks. (Set For Life Book Summary)
You can devote this time to fulfilling the goal of your financial freedom. Whenever you are spending. So always be reasonable. Another special trick, which author gives for money saving.
that is – Do It Yourself (DIY) i.e. learn to do things yourself. Like some people serve their car or bike themselves. You will find many such videos on YouTube. where you can learn from. That’s how you can do regular serving or repairing of your car or bike. (Set For Life Book Summary)
This will also increase the knowledge of your bike or car. Surely, your money will also be saved. Something has to be repaired in the house. Something has to be set. You can do it yourself. Serving a bike or car is quite easy. You have to change engine oil. Together some parts have to be tightened. Which easily, this thing can be learned from YouTube.
To Save Money is Buy Good Enough not the Best.
It is not that branded clothes are good. The quality of local clothing can also be equal to or even better than branded clothes. The only difference is that brands spend a lot of money in marketing. So this money is recovered from you. You have to spend three to four times more in branded clothes. Similarly, you can take a small or affordable car.
Not that the Fortuner is to be bought. By having an affordable car, you will save money in purchasing. The service cost will also be less. That car will also be fuel efficient. So this will be a win win win situation. Because if you take a big car, you will. But you will think at the time of servicing or while filling petrol. Should have taken that small car. Unless you are already a millionaire.
Leave Debt.
You have to leave the debt before saving it. Because the interest will increase and the loan amount will also increase. If you have any loan. So forget the luxury. Don’t go to the restaurant to eat. Use cheap public transportation. Don’t buy any property or expensive thing. Do not invest together. First of all get loan free. Complete the loan with high interest first. Then less interested. If you have multiple loans.
You have to follow all these things on a daily basis. Until your saving is up to $25000. That is, it should not be equal to buying a house. Keep in mind that in this amount, one to two lakh rupees should always be with you as an emergency fund. This happened as told by the author. The first stage of set for life.
Step 2 – Buy, Live in and Rent Out a Duplex or Fourplex.
You compare two things. First you have a duplex or fourplex for rent. Second you have bought duplex or fourplex. a part of which you live. The other part of this, you have given on rent. In the first method, every month you have to give a good amount of your income in the form of rent. Which, along with inflation, will increase every year.
The author has named this thing as House Hacking. The amount of rent will also increase with inflation. Your pocket will be empty. Now consider another way. This is the best way. You have bought a multi-family property. With the same money, which you had saved in the first stage. The part you are not using. Rented it out.
The advantage of this is that the first thing you do not have to pay any rent. Your entire rent money is being saved. Second you are getting extra income. You can save or invest it. Depending on the inflation, you can increase it. Now you control things. A part of a duplex or fourplex, means to let out. You have put the entire family space on rent. So even the rent amount, you will get a lot.
Step 3 – Side Hustles with The Job.
The author says that you can do one more thing. Along with the job, you can also continue with the side income. Do anything like this. Today technology is very fast. We can also do a lot of part-time work. which can be online. In which you do not need to go out or put much effort. Such as blogging or youtube.
Whatever you are good act. In whatever field, your skill is there. For example, you can create courses in Coursera or Udemy. Teaching coding, gardening or cooking. Whatever your skill is, you can do it according to it. You always need to keep learning. The market is changing. People are changing. Technology is changing.
If you want to go with the world. So you have to change with the world. For that, you need to be updated. The things you are learning today. It is changing day by day. You need more information next. So you always have to keep learning. Always focus on those things.
Who Change Your Attitude. Change your wealth. Where is your saving. Keep growing your skills. Along with this, keep increasing your financial education as well. (Set For Life Book Summary)
Keep reading books. Keep listening to the podcast. Keep your friendship with those people. Who has achieved that thing. what you want to achieve. In this case, Financial Freedom. Stage 3 is named by the author. Moving from your own house to Financial Freedom. (Set For Life Book Summary)
So, this is the short summary of the comfort crisis book. hope you liked it. If you find this informative then also check out some more book summaries like The 5 second rule , The magic of big thinking , Finish book by john acuff, Hooked book summary, Purple Cow Book Summary, Rework (businesses important lessons) etc in my blog section.
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