HOW I BECAME THE MILLIONAIRE NEXT DOOR

what's up everybody this is prepper princess i'm going to talk to you today about how i became the millionaire next door so let's go ahead and get right into it so i started working at the age of 10. i got a paper route at the age of 14. i became a bottle girl which is a old term for a stalker like a a merchandise stalker at a liquor store 16 i went to target 18 i went to best buy and i kept working and working and working so at the age of 18 years old i immediately started maxing out my 401k at my job that had a company match so that was just to get the match i also maxed out my roth ira which i believe at the time was maybe 5k a year and i did not do this monthly i've always saved up and put in a lump sum at the end of the year which is not the best way to do it but it seems to be the only way that i can do it without messing things up so this is what i did okay and i've been doing this for ever for since the age of 18. one thing that i wish that i would have known when i was younger is that you don't have to be 18 years old to invest you can invest these are only tax beneficial retirement things so these are where you you are benefited by taxes but there's ways to do it without being benefited by taxes this is where you hear about things like robin hood and e-trade charles schwab vanguard fidelity all these different companies so after several years i started getting a better income a higher income and my expenses went low enough that i not only maxed these out i also started putting a ton of money into non-tax beneficial retirement accounts one of the things i do want to talk to you really briefly about is windfalls that's when you get money that you were not expecting so back in my early 20s i worked for a bank called washington mutual not sure if you've ever heard of it but i worked in the fraud department and during the i think it was it was either 2001 i think it was 2001 financial crash okay or maybe it was 2008 i'm sorry you know i'm 39 years old and i can't remember 20 years ago exactly what the dates are but washington mutual was bought out by chase bank via the fdic they mandated washington mutual to sell themselves so washington mutual told us a year ahead of time a full year that we were going to lose our jobs they called in the entire company they said in one year you have one year from today's date and you are going to be let go so this gave everybody the opportunity to search for a new job but if you stayed with the company what they did is they paid you your you know hourly wage i don't know if i don't remember what i made 15 an hour maybe it was 12 an hour maybe it was 11 i think it was like 12.50 i don't know but say that you got paid 15 bucks an hour so you would work for that entire year making your normal salary at 15 bucks an hour then after your last day of work they would send you a check for the entire year that you worked so you make 40 grand a year they sent you a check at the end you got paid normally and then at the very end they sent you a check for 40 000. it was taxed as a bonus so it's like minus forty percent but i did receive a check for twenty three thousand dollars this was a huge thing now i don't remember exactly i think i was this was one of my jobs where i was becoming debt-free so i worked uh two jobs from six a.m until midnight for a full year and a half six days a week and then on my seventh day i would work at labor ready in order to get extra money if i couldn't get a shift so this twenty three thousand dollars did not go towards debt i don't remember if i was debt free at that point that went straight into my retirement accounts so let's move on to another windfall um i inherited a house when my mother passed away in the bay area of california now i am very open and honest about this so the house when when she passed away it was done under a living will and trust which means that yes i inherit the house but i also inherit all of her debt the house was not paid off so she owed about 45 000 on the house but by the time she passed away when i was 28 i was already saving up for my own house and i had forty five thousand dollars so i paid off the house also the property taxes were about four thousand per year i stayed there for ten years so forty thousand in property taxes forty five thousand towards paying off the house and an additional eighty to a hundred thousand dollars fixing it up new roof new gutters new landscaping new flooring new walls new paint new new plumbing new bathrooms everything had to be updated i also had to spend about eight thousand dollars hauling off all of her stuff because unfortunately when she passed away she was a hoarder so i invested a whole lot into this property fast forward several years later my brother decides that he wants to sell it because he also inherited the home and my aunt had a 20 stake in it so we sold the house for 732 my aunt got 20 percent the remaining 80 percent was divided between my brother and i my portion was 292 000 minus the 150 or so that i put into the house so i made about 140 000 now you would think what most people would do is take this hundred and forty thousand dollars and buy another house well i already had all of my all of my retirement was maxed out at this point and i just had extra money sitting around because i live a frugal lifestyle so i bought this house for 67 thousand dollars at the very bottom of the market it has now doubled in price about a year and a half later and the money that i got from the inheritance of the house just went into retirement so i haven't actually touched any of the money from the house other than putting it into my retirement and it has grown exponentially since that point so i do want to talk again about different types of windfalls now this is very important every year around tax time now in my adult life i have never gotten a tax refund i always owe anywhere between five and eight thousand dollars per year even though i claim zero dependence i am debt free so i do not have any tax deductions um i did find a new tax guy he was able to find a few tax deductions but nothing like a mortgage payment or student loans or you know cars or anything that most people can use as a tax deduction i don't have that option and i also do not have children because i could not afford them however every year around tax time i always hear all of my co-workers telling me about how they got an eight thousand dollar check a six thousand dollar check a thirteen thousand dollar check and every time i ask them what they're going to do with this windfall this unexpected money they spend it they don't put it into their retirement they don't put it into assets they put it into liabilities they're like me i'm taking my son my boyfriend and his four kids to disneyland and it's like i thought you said you owed 18 000 on your suv yeah i'll do that later but right now we're going to disneyland and we're going to remodel our living room and buy new furniture so when most people get a windfall they spend it i save it or i invest it which is one of the most important things that you can do and these are my two biggest uh windfalls um were this and this is what started it all because this happened remember the 23 000 during the 2008 financial crash when the market was at its absolute lowest i can't even calculate what that is worth right now but i put that whole 23 000 in and i had already been investing for seven eight nine years at that point i was born in 1981 by the way i am 39 years old i became financially independent and able to retire at the age of 38. i tried retiring at the age of 38 and i almost went insane so i am now back to work uh that's just the way it is uh i actually enjoy my job it's a little bit different when you have the money is that you actually enjoy what you do uh i and i get a lot of people asking what i do i work with the public i do not wish to tell anyone where i work a couple of my subscribers have run into me at my job so i am very easy to get a hold of and as you know there are a lot of crazy people on youtube people who stalk me who dox me who show my address uh who have come to my house so i do not want people showing up at my work so i choose not to say what i do and i choose not to say where i work but i work yes now with my current job now remember folks i am debt free financially independent and i'm gonna be honest with you i'm at the point in my life i have almost no expenses i have no you know no student loans no car loan no house mortgage no i have no debt i pay off my credit card monthly and i just use that for transactions like water garbage sewer um electric electric and i just live my life now a lot of people talk about you know not being able to do it that's a horrible life to live well let me start by saying that a lot of people make a lot of small transactions to get their mind off things to get away from it all and when people go on vacation they go on vacation to get away from it all well i have set up my life in such a way that i have nothing to get away from because there's nothing to get away from i enjoy my life i love my life i get to spend time with my best buddy rocky i get to go play uh in the river i get to go for walks i get to do what i really enjoy doing and a lot of people are like well what about traveling the world been there done that costa rica nicaragua guatemala africa you name it i have been there well not you name it i've been there i've been to every place i've ever wanted to visit with the exception of australia and maybe sweden or or something like that but i have traveled the world you know and people don't they think that because i'm so frugal i haven't seen anything um they also assume that i don't treat myself now i do want to say that every year i will go on vacation when i go on vacation i make it rain okay i do not budget anything for vacation i spend what i spend and that's what it is there is dust flying in my nose i spend what i spend and then i just pay it off when i get home because i have a large savings account i do have a fully funded emergency fund which is a full years of expenses most people stop at three to six months but i am not comfortable with that so i have one year of spending in cash okay so i follow the dave ramsey method live and give like no one else and that is how i live my life recently we had i just got a stimulus payment that i had no clue was a thing like not only did i know not know i was getting one i didn't know that anyone was getting one so i just got a check for 1800 bucks do you know what i did with that 1800 bucks i donated it to the animal rescue foundation the entire thing because why i don't need it i'm financially independent i'm happy i'm good so that's how i did it folks it is a really simple formula but not a lot of people are able to follow it i highly suggest if you have a starbucks habit and you're spending six seven dollars on a frappuccino learn to make it yourself for 27 cents per frappuccino and you can even get a pretend starbucks cup that has the starbucks logo on it and then you can make your friends believe that you're still drinking your starbucks even though mine is just as good if not better and what i did also i forgot to mention is while doing this for the last 15 20 years uh i lived on almost nothing and i wrote a book living on almost nothing i will leave a link in the description so i got rid of my cable and i got a roku box i'll leave the description for that also and for those of you who have an antenna i really hope that you enjoy uh riding your horse and buggy to work but you really need to upgrade to a roku as long as you have internet service i downgraded my internet service from 74 a month to 37.99 a month i um changed my cell phone plan it i didn't even change my cell phone plan it actually improved i used to have at t for 74 a month i now have mint mobile for only 15 a month and i have unlimited everything and instead of getting two gigs with att for 74 a month i get four gigs with mint for 15 a month i'll leave the link for the mint mobile in the description also i switched my car insurance from everything to liability i use my electricity sparingly i do my laundry via a small washing machine and i do it via solar with water that i catch in a bucket in my shower it's water that would otherwise just go down the drain and be put right back into the system but why do that if i can do it myself i hang dry my clothes i ride my bike or walk whenever possible in fact every time i go grocery shopping i ride my bike and i will have a review for you guys soon on an e-bike i just got confirmation from the company that they are going to be sending it to me and i really do believe that this is the way of the future and it is especially the way of the future for us frugal folks out there so frugality is not a disease even though it sounds like one you can become financially independent you can make a living off of your money if you just don't spend it all right folks i hope this video has been helpful do what you can nope not do what you can um if you believe that you can do it or you believe that you can't do it you are right prepper princess out take me as far as you can and then i'll do it on my own right [Music] come on [Music] is

Channel: Prepper Princess

Views: 349,763

Keywords: How to become rich, wealth, finance, budget

Id: PRTzITJvLOI

Length: 16min 30sec (990 seconds)

Published: Thu Jun 17 2021