This is my honest advice for anyone who wants financial freedom, and it comes from years of personal experience. You see, back in school, my teacher saw me as a lost cause, which pushed me to drop out at 16 and start an apprenticeship as a carpenter, which involved making wooden trash cans for only $2 an hour. This was just enough to cover my expenses. Every day felt the same and blended into one. I was stuck on a hamster wheel, never getting ahead. I knew if I didn't find a way to escape, that I'd end up just like my soulless
co-workers. I wanted to be free to do the things I loved without being a slave to my boss. So, I came up with a plan and managed to achieve millionaire status and financial freedom within my 20s. A lot of people ask me, is it still possible to become financially free today? And the answer is, yes, absolutely, if you've got the right plan. So, by the end of this video, my goal is for you to have a clear roadmap to get financially free as quickly as possible. Let's get into it. Step one is
to find your freedom figure. Your freedom figure is the amount you need to live your life without having to worry about money ever again. Once it's invested correctly, it will generate enough passive income to fully support your lifestyle without ever running out. I'll talk more about investing later on, but first, we need to nail down what that figure is for you, as this isn't a one-size-fits-all kind of thing, because financial freedom means different things to different people. So, the first thing
you need to do is set your financial freedom baseline. Maybe you want a life where you go on vacation more often, drive a sports car, live in a mansion, or buy a private jet. Just bear in mind, the fancier the lifestyle you're aiming for, the tougher it'll be to get there. Personally, I've always valued the freedom that comes from not having to chase money over living a lavish lifestyle. So, I made a rule early on to only increase the quality of my lifestyle slightly each and every year.
Let's go through the different areas of your life and estimate what each one might cost to live comfortably. I'll be basing this on studies that show what people in their 20s typically aspire to. Now, grab a piece of paper and feel free to adjust the numbers to match your own goals. So, first up, your house. For most people in their 20s, city life or a place on the outskirts is ideal. If you get a spot in Miami, you could be paying around about $30,000 per year for a one-bedroom flat. And if
you're in the UK, then London's rent prices are pretty similar. Next up is your car. Now, the Porsche 911 always seems to appear on dream car lists, so let's use that as an example. Luxury cars like this come with higher costs after considering fuel, maintenance, and insurance. On top of the car payment, you'd be looking at a total of around $24,125. Now, for vacations. According to the New York Post, Gen Z's are far more interested in traveling than my generation ever was. Back in my day, one
vacation felt extravagant, but now the sweet spot seems to be around three trips a year. For three mid-range trips, you're looking at about $5,000. And of course, if you're bringing someone along, you can expect to double that. Next, we have to consider the boring bills. If we stick with the one-bedroom apartment in the city, then with electricity, heating, water, and internet, I'd estimate that this would cost about $3,000 per year. Next is food. Now, I'd assume you'd want a mix of home cooking and
eating out. I reckon you could do this for about $5,000 per year. Now, for health insurance. This isn't really needed in the UK, but if you're in the USA, then you can expect to pay $2,500 per year for a mid-level plan. Finally, there's leisure. This covers your gym membership, nights out, and any other spur-of-the-moment spending. A reasonable yearly budget for this would be around $4,000. Once you've written down your costs for each category, add them up to see how much you'll need to live your dream life
each year. In our example, that adds up to 30, 24, 5. Right, that's $75,325 a year. How's that for a bit of quick maths? Now, to find your freedom figure, take that yearly number and multiply it by 25. We use 25 because of a rule called, wait for it, the rule of 25. Who'd have guessed that? This rule is a way to figure out how much you'll need invested so that you can take money out each year without ever running out. In our example, 75,325 multiplied by 25 gives us $1,883,125. Think of it like having a golden goose
that lays just enough eggs each year for you to live on. As long as you only take the eggs and don't eat the goose, it keeps producing more eggs every year. That way, you can keep living off the eggs without ever using up your main money stash. This is assuming you're able to get more than a 4% return on your money. And while past results aren't a guarantee of future returns, the average annual return of the S&P 500 over the last 10 years has been around 12 to 14%. Although it's slightly higher
than the longer-term average, no one has ever lost any money if they have bought and held an S&P 500 index fund for more than 20 years based on historical averages. So, how do you invest in the S&P 500? Well, just download an investing app like Trading 212. Once you're in, search for an S&P 500 ETF, which lets you invest in the top 500 US companies all at once. Trading 212 lets you invest in something called fractional shares. This is great, as it means the stock market isn't just for
the rich investors anymore, and the average person can get involved. If you're just starting out, it's a good idea to use a strategy called dollar-cost averaging. This basically means you're investing the same amount on a consistent basis, whether the market is up or down. The idea is that over time, this will help you average out your costs so that you don't buy all in when the market is its most expensive. Rather than doing this manually, you can actually set up the app to invest automatically for you on a
regular basis using the Pies feature. Since I was planning to talk about Trading 212 anyway, I reached out to them to see if they'd be interested in sponsoring this portion of the video. They agreed and are offering a free fractional share worth up to £100 to anyone that uses the code Tilbury when they create an account. Plus, you can get more free shares by inviting your friends. Both of you will get a free share as long as they fund their account. I'll leave a link in the description if you're interested. Step
two is to hack your life. I get that reaching your freedom figure in an investment account might seem like an impossible task. It definitely felt that way for me when I first started, but there are a few strategies that can help you get there faster. I highly suggest taking a closer look at all the areas where money might be slipping through your fingers. Chances are, you're spending far more than you realize on things that don't really matter to you. Don't worry, I'm not going to lecture
you about skipping Starbucks or making packed lunches every day. I'm sure you've heard enough of that advice from my shorts. Instead, I want to show you clever ways to keep living the life you love while saving money through some smart hacks. Let's kick things off with car hacking, because I think a lot of people need to hear this. Social media might have you thinking that everyone is driving around in Range Rovers and Lambos, but let me tell you, that's usually not the case. Most of these
people have their cars on finance or loans, paying hundreds of dollars every month just to keep up appearances. According to LendingTree, the average monthly car payment for a new vehicle in 2024 hit a whopping $734. That's almost $9,000 a year down the drain. The worst part, most people can't even afford these payments, which is why there are around 100 million Americans with outstanding car loans right now. So, let me give you some advice. Don't get sucked into this trap. Just because
your mates are taking out car loans, doesn't mean you have to. Instead, think about car hacking. This means buying a quality used car that's already hit the bottom of its depreciation curve. You can drive it for a few years and then sell it for close to what you paid. No massive monthly payments and no debt hanging over your head. Next up, let's talk about something I like to call brand hacking. This is all about picking generic or store brand products over the big name brands to save a bit of cash
without losing out on quality. A study from moneysavingexpert.com actually found that people can save up to 87% by going with generic versions instead of the branded items. But, let's get practical so you can see what I mean. Here's a box of Cocoa Pops, absolutely classic, everyone loves them, and I always keep a box under my desk, but they cost around $4.25 for a box. And here's a box of Choco Rice, the unbranded version, which costs around $1.66 a box. By choosing the unbranded cereal,
you're saving $2.56 each time, and honestly, I bet most people couldn't even taste the difference. Plus, you get 500 g over the 290 g in the branded box, so it's going to last nearly twice as long. I know what you're thinking, $2.56 isn't going to make me a millionaire anytime soon. Well, actually, if you save $2.56 every day, that's $934.40 a year. Do that for 5 years and you saved $4,672 and that's just from one small swap. Think about how much you could save by making similar swaps in other parts of
your life. It's all about those small adjustments adding up over time and making your money go further. Now for the big one, house hacking. As we know from step one, housing is usually your biggest expense, but what if you could reduce or even completely eliminate that cost? You're probably expecting me to say live with your parents or go for a smaller apartment and while those are good options, they don't suit everyone. So here's a smarter strategy you can use. Instead of getting
a typical apartment, think about getting a duplex or property with an extra room or two. Sure, this might mean a slightly higher deposit up front, but it's worth it. You live in one unit and rent the other one out. Using this rental income to cover most, if not all of your mortgage. That way, you're effectively living for free while building equity in your home. You can also do this if you're renting. Recently, I went to a nice Airbnb near London Bridge. It was a fantastic spot and I got talking with
the Airbnb host and found out that he actually rented the place for 4K a month. When he rented it out on Airbnb, he would just go and stay at his girlfriend's. I did some quick maths and worked out that he only had to rent out the apartment for 10 days to cover all of his rent. Pretty smart if you ask me, but of course he did have to get a nice enough apartment with a good view for it to rent out well on Airbnb. But if you're prepared to take on a slightly more expensive place, then it will be
easier to get bookings on Airbnb. Just make sure to clear it with the landlord before doing this as it could cause a lot of issues if you're not up front about it. Now for tax hacking. I know this one might sound a bit dodgy, but trust me, there are lots of ways you can legally keep more of your money. One great tax hack is to take advantage of deductions. If you have a small business or side hustle, you can reduce your taxes by claiming expenses like a home office, internet or travel as long as
they're used for business. Another is using tax-free savings accounts. In the UK, you can save up to 20,000 pounds per year in an ISA where all your interest and gains are tax-free. In the USA, you have a similar option like the Roth IRA. Tax hacking is all about understanding the rules wherever you are and using them to keep more of what you earn. The aim is to pay what you owe, but not a penny more. Now let's talk about deal hacking. This is all about negotiation. Let's say you're looking to buy a car.
Never accept the sticker price. That's what the dealership wants. Remember, the first price is rarely the best. Do your research first so you know the car's market value. Get quotes from a few dealers so you can say the dealer down the road has offered me a much better deal and actually be able to back this up as it puts you in a much stronger position. The easiest way to find out the true value of a car is to pretend you're selling the one you're looking at to a car buying service like CarMax or
Carvana. Check out what they'd offer you for it online. You want to pay as close to this price as possible to ensure you're not overpaying for the car. Also, buying at the right time matters too. If you go at the end of the month when sales people are trying to hit sales targets, you'll often find a better deal. These strategies have saved me thousands on cars over the years and they work for lots of other things too. So don't be afraid to ask for a better price. Everything's negotiable if you
know how to play the game. Step three is to get a credit card. The biggest lie young people are told is that credit cards are evil and that you shouldn't have one. A lot of people think credit cards are just a quick way to get into debt, but the truth is they're actually one of the best tools you can have for building a solid credit score if you use them wisely. Your credit score is like your financial reputation showing lenders how reliable you are with money and with a high score, you'll have much
better options when it comes to borrowing which can save you a ton of money in the long run. I mean, let's say you're 28 and you're ready to buy your first home. If you've been using a credit card responsibly and building that score up, you could qualify for a mortgage with a lower interest rate. That means that more of your hard earned money stays in your pocket instead of going to the bank, but if you've ignored your credit score, you could end up with sky-high interest rates or even be
turned down altogether. So don't fear credit cards. Use them to build your credit score, but keep your balance low and pay it off every month. Step four is to create an additional income stream. If you're serious about financial freedom, building an extra income stream is key. Think of your income like a stool with one leg. If you're relying on just your job, that's a single leg holding you up your entire life. If that leg breaks, let's say you lose your job, then you're left with nothing to keep
you steady. This happens way more now than it ever used to. The truth is secure jobs aren't as common as they once were. Most people will have around 12 different jobs over their lifetime, but if you add a few more legs like a side hustle or investments, that stool becomes rock solid. Now if one leg fails, you're still supported by the others. Building multiple income streams is like adding extra legs to your financial stability. A great way to start is by choosing a side hustle that builds on skills you already have. That
way, you don't have to learn something brand new from scratch. There are plenty of options, affiliate marketing, freelancing, e-commerce or even classic gigs like window and car cleaning. The main thing is the value you bring. The more valuable your work, the more you'll earn. Now, I know the usual excuses. I'm too busy. I don't have enough money to start. I don't know how. But let's be honest, these are a load of rubbish. Let me be real with you. There are 168 hours in a week and a 9-5 job takes up
40 hours and if you sleep 8 hours a night, that's 56 hours. Plus about 10 and a half hours for meals and 10 hours commuting, that still leaves you with over 50 hours of free time every week. So if you tell me you're too busy, then you just don't want financial freedom enough. Step five is to use money for its true function. There's one thing that rich people do completely differently to middle class and poor people. Poor people think that money exists to pay bills and fund their
lifestyle. Middle class people think money's for building credit so they can get bigger loans to buy bigger houses and nicer cars. Rich people know the true function of money is expansion which means using your money to make more money. So once you've got some side hustles or extra income streams going, it's time to think bigger and I don't mean a bigger lifestyle. That's the trap that catches a lot of people out. As soon as they start making more money, they start spending more. Instead, think about how
you can use money as a tool. This is when you start looking into passive income streams where your money can grow while you sleep. This is why the rich get richer. They're not just working for their money, they're making it work for them. Now, no income stream is truly passive, but by investing wisely, you could reach a point where your money does the heavy lifting. Back in the day, I was working long hours flipping cars in the evenings, working in the shop on Saturdays and tutoring on Sundays. I hit
the point where I physically couldn't fit in any more hours. That's when I realized I needed to put my money into things that could grow on their own. The stock market is one of the easiest places to start and as we mentioned with Trading 212, you can get going with as little as £1 and even try out strategies in practice mode without risking real money. Personally, I invest most of my money in an S&P 500 index fund which has delivered some great returns over time. Now let's talk about crypto. This one's
a bit different. It's got a low barrier to entry and big growth potential, but it is riskier than stocks. I keep about 5% of my money in well-known coins like Bitcoin and Ethereum. I think it's worth having just in case things pump like they did after the US election. However, I am prepared to lose it all as it's a high risk investment. Of course, real estate is the ultimate wealth builder, but it does need a bit more cash up front. If you can save a deposit, you can take advantage of the house hacking
method I mentioned or you could build out a portfolio of rental properties. If you want to know exactly how to set up an investment account step by step, then I'm going to leave that video right up there, but don't click on it just yet. Make sure to subscribe if you want to grow your wealth, okay? I'll see you over there.
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