how to be financially free, build a passive income + retire early

Written by Glen James

Host of the money money money (formerly my millennial money) & Retire Right podcasts & author of The Quick-Start Guide to Investing.

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Imagine waking up every day and knowing that your bills are covered, your future is secure, and you’re not stressing about the next payday. It's about more than just learning how to make money or finding the best investments; it’s about having the freedom to live life on your terms, do what you love, and give back to the community.

Whether you're aiming for early retirement or simply want to build a solid passive income, there are a few key phases you need to navigate. Let’s break it down, Glen James style, into four phases that’ll get you closer to that sweet financial freedom.

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Phase 1

• you have no consumer debt ✔️

• you have a cash buffer in place: start with $2,000 - aim for 3 months ✔️

• you’ve moved beyond living week-to-week: you have the Glen James spending plan or some type of system in place where you are not hanging out for payday ✔️

• you have secure housing ✔️

• you are physically and mentally healthy ✔️

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Phase 2

• you have a fully funded emergency fund ✔️

• you are doing what you love ✔️

• you have a plan and vision for your future? ✔️

• you are with the right person to do this? ✔️

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Phase 3

• you regularly investing into growth assets ✔️

• you are on track to own your house by age 60 ✔️

• you are diversifying your income ✔️

• you are trading your time for money ✔️

• you’re growing your passive income: to do this right, you either need high investment balances or to build something to provide as a product or service that is scalable ✔️

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Phase 4

• you’re giving back! ✔️

• you’re truly living life on your terms! ✔️

• you don’t feel like you work, you feel like you live and working is part of what you do! ✔️

• Mondayitis it not a thing in your life ✔️

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So there you have it—four phases that’ll set you on the path to financial freedom. It’s not about getting rich overnight; it’s about making smart, intentional moves that align with the life you want to live. Remember, this journey is yours, and it’s okay if it doesn’t happen all at once. Start with the basics, build a solid foundation, and then level up at your own pace. Before you know it, you’ll be living life on your terms, working not because you have to, but because you want to. And isn’t that the ultimate goal?