Skip to main content

How to Retire Early: The Latte Factor

Lesson 7 of 18

FITE - Financial Independence to Transition Early

 

How to Retire Early: The Latte Factor

Lesson 7 of 18

FITE - Financial Independence to Transition Early

 

Lesson Info

FITE - Financial Independence to Transition Early

what we're gonna do right now is talk about the fire movement. How many of you have actually heard about the fire? Moved? Only one person so interesting you were about to fire movement Is this hugely popular movement that really millions of people online and maybe some of you at home are are part of the fire movement. Fire moment stands for financial independence. Retire early. So there's a whole movement, especially young people across America now actually is going global that are saying, I I don't want toe around my timeline anymore, but I don't want to retired 60 or 65. I want to retire sooner, and they're looking for ways to retire sooner. I'll call, walk you through what people are doing and how. If you want to be one of those people, what you need to dio. So the first question ask yourself is, Why would you want to retire? And I think that that just does Anybody here who doesn't have employer watching want to retire early? Because Because if you're wrong, you like it? Yeah, I do.

One retired early. I think it's really important. Ask yourself why What I've found is the answer is actually not. The answer is actually not being in a position to not work. When I really dig into what people want to retire, it's usually because somebody wants to stop doing somebody don't like. So they have a job they don't like, and they're just tired. One thing that happens as we get older is our pan for bullshit becomes less. Our tolerance for bullshit becomes less right. So you'll meet people when they're in their late fifties and you go, Why did you retire your first, like I just can't take it anymore, right? And so they're finally at a point where they saved enough money and that's when people retire in their late fifties and early sixties. But when you step back and go, OK, I know what you don't like. So tell me all the reasons why you what you're moving away from, it's really going to give you two lines right now. You've got these white papers you go make a long ago. Left hand side is what I don't want. On the right hand side is what I do want. I'm moving away from this and I'm moving towards that. What I'm seeing is the people who are having success in the fire movement. They have clearly around three things. One, They have clarity around the dollar amount that they feel it's gonna take them to be free. And the critical thing to say here is different. Every one of them. It's different for every one of you. Some people are like when I have 1/4 $1,000, I'm done and they're gonna go live a super low cost lifestyle and they're in fear how to make it work. Some people like I need a $1,000,000. I'm done Other people, like I just need six months expensive set aside so I could leave my job and I could be a creator. Um, that's why to me, it's not so much about being done. Like the critics of the fire movement are obsessed with the fact that, well, these people are going to retire early, and they're not going to save enough money in their run out. I actually, every the people I meet in the fire movement, they're not actually retired. They've left a job they don't like, they're doing something else. They figured out a lifestyle that doesn't involve having a corporate job, but they don't want any more. They've found freedom in another way. It just makes sense. So I've decided to rename this movement National Can't can't rename the Fire Movement. I'm gonna just call up my own movement. I'm naming it the fight movement. Fight stands for financial independence to transition pearling because I think what Mawr people need is a transition plan. You know, when I took my sabbatical, you heard me talk about with Chase. Earlier, at I was burned out and tired and not enjoying was doing, even though it was my dream still tired, and that year off gave me a reboot on life. It didn't recharge my batteries. It replaced my batteries. That was a transition. I didn't know that that's what it waas. But that year off, transition me emotionally, spiritually, physically energy wise, creativity wise. And I was in a financial position to take a year off. I'm taking another year off. I'm getting ready to go to Florence, Italy, for a year at 52 and I'm gonna have a year of my family to go abroad. So instead of retiring, I'm taking breaks, recharging and then going again, which I think take me then all the way through my life. Because I think if we would take more bricks in transition to new things, we would never stop. They used to say, like you should replay it yourself every seven years. Have you ever heard that phrase? But it is important anything that you do in life. After 7 to 10 years, usually you've mastered it. Unless a new challenge comes along, you become bored. So a lot of you you're just bored with what you're doing now. It was fun once upon a time, and it's not fun now and then. Eventually, instead of being bored, it becomes bs, right? Because you not once you're bored, then it usually goes the opposite way. And then people start counting their time friend. Oh, my God. I've got 15 more years of doing this. Well, rather than be that person in their fifties who is forced out, I'd like to help all of you transition if you want to. So what does it take to transition there? Couple of transit. You can transition to never needing to work. You can also just transition to I need this much money to go to the next thing. So some of you are asking like, How do I prioritise? One thing to ask yourself is if you if you're here because your creator and you've got an idea for a business and you wanna go for this, this new thing, how much money do you need to set aside to get there? Most of you have you had a year's worth of expenses set aside, You would feel comfortable taking the rest to leave your job. It's always fascinating to me how much money people feel they need for their whole life to change. I used to have a radio show on Sirius Satellite, and The New York Times came along after the automatic familiar came out and did a whole story about the lottery factor actually took the picture of Oprah and I on stage with the quart of a $1,000,000 in cash that we showed on her stage. And so there's a picture of that in this article, and he spent the day with me to radio Station, and he tracked his lot a factor and he talked about how it changed his life. One things he said. He said, How much money does it take for a person to change your life as it How much money do you think it takes? How much money thing people really want? Goebbels asked on the radio. And I had everybody guests in the studio. Most people thought the amount of money that people would want if I gave you this much money would change your life. Most people thought he was going to a $1,000,000 and I said, It's gonna be 10 grand or less that the average person $10,000 would totally change your life And the phone calls start coming in and it's like that $1000.5000 dollars, $10,000 only one person, $72 million. So the thing is, a lot of you need a lot less money to transition to your new life. I want you saw me talk about the 50 20 formula early on. I just want to go back to this because those you I think a $1,000,000 a great number to work towards because there's five billion people in the world and 42 million or a 1,000,000 years so still a small, tiny portion and, like 99% Americans aren't millionaires. That's why when I wrote the automatic millionaire people like, Well, why? Why millionaire? Because 99% heart millionaires. So what does it take to get $2 million? You want to get there faster? It's $50 a day for 20 years. A 10% boom, $1,139,000 years, three million $390,000. $50 a day for most people is two hours of the other income for most people. A lot of you make more than that. For some of you. It's actually one hour day of your income If you want to retire early. This is a slide that is gonna just be annoying because it's what you actually have to dio. It's this simple. You have to spend less. You typically need to make more an ideal world. You do both spend less and make more you to invest more aggressively, which doesn't mean going on buying Bitcoin, but you have to be in assets. They're getting higher rates return. You need to track it daily. The one thing that people in the fire movement do is they're of They're obsessed with tracking their net worth and they measure it, measure it and they measure and they blogged about it publicly. That's kind of how the fire movement got going is people are like, I'm going to say this money, I'm broke. I'm gonna track it. I'm gonna show you every day. And by doing that, other people started encouraging each other. So you got to spend less than you make. You got to cut your expenses. You can grow your income in the best approaches to do both. I just want to show something here because we have so many entrepreneurs that will watch this. People underestimate how small amounts of money in extra income, if saved, can change your life. So if you grow your income by $5 a month at 8% in 20 years you have nearly $300,000. Assuming you saved it all in 25 years, you have nearly 1/2 a 1,000,000 in years you could have 7 $30,000.500 dollars a month. You could drive uber today, make an extra $5 a month, not a day but a month. You could be on Fiverr today and have a job part like There's so much you can do today to bring in extra money. You could be a multilevel marketing. What if you did $1000 a month $1000 a month in 20 years, you could have an extra $592, again if you saved it. And I'm using a percent years, almost a 1,000,000. 30 years, 1.5 million small amounts of money can change your life. A lot of you is entrepreneurs who are doing well. This is a pretty amazing number, and I know a lot of people don't believe they could make $10,000 a month. But a lot of people dio as entrepreneurs. Look at these numbers like you could be broke right now if you could figure out to make an extra 10 grand a month with an online business with going through create large classes, I don't know. I mean, there's 10,000 hours on create alive. If you just started studying some of these classes online, I think you could probably figure out how to make more money, and it adds up right? Provided you keep it. What most people do when they make a next 10 grand totally change your lifestyle. Buyer bigger home, get a new car, and before you know it, they haven't made any more money.

Class Description

AFTER THIS CLASS YOU’LL BE ABLE TO:

  • Create financial freedom starting with as little as $5 a day
  • Learn how to earn 10% rates of return of your money
  • Understand the automatic millionaire habit that changes everything
  • Retire early or transition early to a life you dream of
  • Understand the FIRE movement and how to apply it to your financial future
  • Know how to become rich faster, as a freelancer or a small business owner
  • Use the Automatic Millionaire pyramid system to double your money in 10 years or less
  • Know which companies, apps and investments today are making managing your money easier and cheaper

ABOUT DAVID'S CLASS:

What if you didn’t need to be rich to live rich? What if there were a way you could achieve financial independence and live your dreams now?

In less than five hours – The Latte Factor Class can help you take control over your money and your life. Whether you’re just starting out in business, an employee, or you’re in debt and you just want to live the life you’ve always dreamed of, “The Latte Factor” is a one day program that has inspired millions.

David Bach is the Author of The Latte Factor and the creator of The Latte Factor Method. He’s also a nine-time New York Times bestselling author of books including Start Late, Finish Rich and The Automatic Millionaire. In How to Retire Early: The Latte Factor, David Bach will teach you why you are richer than you think. He’ll help you see a future that puts you in control over your finances and back in the driver's seat of your dreams.

It’s never too late to start living your dreams; today is your starting point. Whether you are living paycheck to paycheck, or simply want to increase your net worth, this class is for you if you’re ready for a fresh outlook on life and money.

WHO THIS CLASS IS FOR:

  • Anyone who wants to stop living paycheck to paycheck
  • Freelancers
  • Small business owners
  • People who want to live their dream life

ABOUT YOUR INSTRUCTOR:

David Bach is one of America’s favorite financial experts and bestselling financial authors of our time. He has taught millions to live and finish rich through his seminars, live events, courses and books. He’s the author of 9 New York Times best sellers, with over 7 million books in print in over 19 languages - including Smart Women Finish Rich, Smart Couples Finish Rich, and The Automatic Millionaire. He’s a media favorite having made thousands of appearances the past twenty years, including on Oprah six times and the Today Show over 100 times. David is the co-founder of AE Wealth Management and Director of Investor Education. His latest book is The Latte Factor: Why You Don’t Need To Be Rich To Live Rich. David presents seminars for and delivers keynote addresses to the world’s leading financial service firms, Fortune 500 companies, universities, and national conferences.

Lessons

  1. Class Introduction

    You don’t need to work five side hustles for the next decades to achieve early retirement. You don’t need to live paycheck to paycheck for the rest of your life. Meet David Bach and learn how small amounts of money can change your life. David shares his personal finance story starting from age 7.

  2. My Start in Investing and Teaching

    What did David’s first “financial advisor” teach him? Why is it so critical that women in particular begin their retirement planning now? David shares his investment history what you’ll learn in his book, The Latte Factor: Why You Don’t Need To Be Rich To Live Rich is about.

  3. Financial Education - Know Better To Do Better

    In this lesson, David paints a picture of the dire necessity of financial education for Americans. Learn about the mindset necessary for a happy retirement, how companies force employees out of work in their 50s, what rich people now that poor people don’t and how credit card companies prey on consumers. David lays out exactly what you will learn in this class.

  4. Start Early, Start Today

    Early retirees don’t all start with six or seven digit annual incomes -- most started saving and investing early. David shares a comparison of how early planning can immensely impact your retirement savings.

  5. The Latte Factor: How It Works

    What exactly is the latte factor and how can you find yours? In this class, David breaks down the latte factor math and shows you how to save money by cutting out small non essential living expenses and developing a daily mindset geared toward retirement. He also shares his pick of online resources and apps that aid in financial planning and investing.

  6. Student Success Story

    Hear directly from Elizabeth, a member of David’s inside team regarding her financial planning journey over the past 18 months.

  7. FITE - Financial Independence to Transition Early

    Learn about the FIRE movement and David’s take on transitioning vs retiring. David reviews how to plan backwards from your desired retirement age, introduces the 50/20 formula and shows the effect of turbocharging your income stream.

  8. Common Investment Mistakes

    Don’t make these common investment mistakes that won’t yield extra income. David gives advice on buying a car.

  9. Becoming Rich on an Ordinary Income

    You don’t need that much money to become rich or build up a nest egg. David shares research from Fidelity Investments that shows the concrete steps to take to become a millionaire through 401k investments.

  10. How Much do You Need to Retire

    How much should you save and invest or, as David says, pay yourself? See what you should be saving at 30, 35, 40, 45, etc.

  11. Retirement Plans & Where to start

    David orients you to the different types of retirement accounts available, highlighting their benefits depending on your needs. Learn the difference between a traditional vs. Roth IRA, spousal IRA, SEP IRA, 401k and solo 401k plan. What is recommended if you’re self-employed? What if you have employees? David answers your questions and points to brokerages, roboadvisors and apps where you can start.

  12. How to Earn 10%

    There’s a lot of talk about earning a 10% return on your investments -- how do you actually do it? David teaches you the rule of 72, a quick way to calculate how long it takes to double your money when calculations and retirement calculators aren’t at hand. David takes audience questions, addressing financial planning in relationships, investing while in debt, and his advice for self-employment.

  13. Investment Pyramid

    The opportunities for investment can seem overwhelming and intimidating; David presents an “investment pyramid”, displaying all investment options from low to high risk. Learn what makes a diversified portfolio and what David himself invests in. Lastly, David cautions against the high-risk investment zone and which investments to stay away from.

  14. Reasons Most Investments Fail

    In this lesson, David shares the top 4 reasons most investors fail; learn what not to do. See a historical representation of an investment from 1926 through today and learn why the stock market will always favor a “boring” investor.

  15. 5 Things to do During Market Correction

    Market corrections are normal and happen throughout history. David advises on what to do on your own or with your financial planner or advisor.

  16. Retirement Accounts and Investments

    What are target dated mutual funds, asset allocation funds, balanced funds and simplified ETF solutions? Why are they ideal investments? Which Vanguard fund does David recommend? David gives you homework in this class: crucial questions to ask yourself and actions regarding your 401k.

  17. Renting vs Home Ownership

    Why is real estate one of the best investments you can make in your future? David shares benefits and advice regarding mortgages, payment plans, bubble-proofing your real estate and how to become an automatic millionaire homeowner.

  18. Why Your Dreams Matter

    David closes, returning to the point of financial freedom: to live your dreams. He gives advice on different investments to consider depending on your time frame and how to plan a sabbatical. He ends the class with your final coursework: finding your latte factor and putting steps into place to start paying yourself first.

Reviews

Ling Fan
 

Great class! Concise and powerful! Wish I knew this 10 years ago.

Kennie Johnson
 

Very helpful and inspiring

Carlos Figueiredo
 

I thoroughly enjoyed the course love it!