Insights on the life-determining choices you’re starting to make.

The way you start your journey in life sets the tone and trajectory for your future. The decisions you make truly matter. Unfortunately, only a small percentage of people ever hear (or follow) the advice I’m about to share.

It’s within your power to get on the fast track to financial independence. How, you ask?

In short: Be an owner, not a renter. Commit to spending as little as possible on depreciating assets and as much as possible on appreciating ones. That simple strategy is your ticket to millionaire status and early retirement. The process is not hard; it’s simply a matter of making informed decisions and choosing the right track. Choose wisely, and there is a known outcome. It all starts with your mindset.

Be an Owner, Not a Renter

Your initial choices as you step into adulthood hold significant weight. Once you get your first job, your next steps will determine which track you take:

• If you immediately buy a new car, rent an expensive apartment without roommates, and buy groceries at a gourmet supermarket like Whole Foods, you’ll look cool on social media — but you just caught the express train to Brokeville.

• Alternatively, if you can leverage your income to buy a house, rent rooms to roommates, buy an affordable used car, and shop at Winco or Food Lion — you are now on your way to building wealth.

There are two types of people: Owners and renters. In rental real estate, every property is owned by someone, and most are also rented to someone. Renters essentially pay off the owner’s appreciating asset, while owners rent to people who are paying off the asset for them. It’s a crucial distinction most people don’t think about.

Everyone starts as a renter, but your goal is to keep that phase as short as possible.

Spend on Appreciating Assets, Avoid Depreciating Expenses

Say yes to putting money into purchases that gain value (appreciate) instead of things that lose value (depreciate). The difference? It’s everything.

Appreciating assets gain value 24/7, year after year, even while you sleep. That money is working for you — pulling you up by your bootstraps. On the flip side, depreciating purchases lose value steadily — dragging you down into the poor house.

Assets that appreciate over time and help your money work for you:

• Real estate

• Art by renowned (usually deceased) artists

• Gold and silver

• Bitcoin

• Collector cars

• Stock in great companies

• Your personal and professional development

Expenses that depreciate over time and work against your long-term financial goals:

• Cash held in checking and low-interest savings accounts

• Cars, especially new ones

• Boats

• Almost every type of vehicle

• Computers and phones

• Timeshare real estate

Generally, people refer to appreciating assets as investments and depreciating items as expenses.

A new car loses 20% of its value after you drive it off the dealer lot and is only worth 40% of its original price after five years. That is a lot of money down the drain.

Future Millionaires Borrow Wisely

Let’s dive into debt, loans, borrowing, and credit cards. Using credit cards to spend more money than you earn is tempting but unwise. If you find yourself in a position where you must resort to using a credit card, it’s time to secure more income or reduce your expenses.

There is a significant distinction between borrowing to overspend your monthly income and borrowing to buy a car you can’t afford. Borrowing money to buy a depreciating asset like a car only helps you lose more money faster:

• If you buy a new $50,000 car with a $5,000 down payment and keep the car for five years, borrowing money helps you lose $30,000.

• If you buy a used car for $5,000 in cash and keep it for the same five years, you only lose $3,000.

Smart borrowing can help you purchase appreciating assets. Be careful to buy at the right price and right time, and hold the asset for 10 years or more. That strategy can multiply your positive results by 5 to 10 times and empower you to acquire more assets.

Borrowing money wisely for appreciating assets propels you toward wealth. You almost can’t become wealthy without debt. Borrowing to buy depreciating items accelerates your losses. You will never become wealthy from buying depreciating assets.

Invest in You

One of the most overlooked assets is you. Money spent on learning, coaching, and becoming a better you always pays off.

Make informed choices early in life, and you’ll fast-track your path to financial independence. Your future millionaire self will thank you!