I Had 6 Roommates

Summary

• I always lead by example and never ask others to do things I haven't done myself.
• When I was earning $20,000 a month, I lived frugally with six roommates, sharing my bedroom with one of them to cut costs.
• I paid for my car in cash to avoid monthly payments and kept my clothing expenses minimal by wearing gym t-shirts with my logo.
• Even with an income of a million dollars a month, my housing costs were modest, with rent at $12,200 a month for a house in Costa Mesa.
• Living below your means is important because it allows you to save small amounts now, enabling you to take bigger financial risks and opportunities later.

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How To Take Action

I would suggest living well below your means as a foundational strategy. If you're starting out or looking to grow, this means cutting unnecessary expenses. Share living space, if possible, to drastically reduce rent costs. It’s about freeing up cash to invest back into your business or personal growth.

A good way of handling transportation costs is by opting for a car you can buy outright, avoiding monthly payments that chip away at your budget. Clothing is another area where you can save; stick to a simple wardrobe like logo t-shirts that serve dual purposes—brand promotion and reduced spending.

Implement these cost-cutting measures even as your income grows. For those making more money, keep your housing costs in check by choosing modest accommodations relative to your earnings. This cash conservation can accumulate over time, setting you up to seize bigger, more profitable opportunities when they arise.

Living frugally allows you to build a financial cushion. This gives you the flexibility to take calculated risks that could lead to significant returns. Being prudent with finances despite increasing income is a powerful way to fuel personal or business growth.

Adopting these practices not only saves money but also builds discipline and resilience, essential traits for entrepreneurial ventures and personal development.