In this week’s episode, Big Al Klopp and I broke down exactly what it takes to get there and stay there. It’s not just about saving more; it’s about thinking differently about money, time, and the future.

What Financial Freedom Really Means

According to recent data, 54% of people define financial freedom as being debt-free, and 50% say it’s about living comfortably. Only 13% equate it with being rich.

For us, financial freedom means your passive income matches or exceeds your expenses. That’s the point where you get to choose how you spend your time.

But here’s the catch: freedom comes from cash flow, not just net worth. If you have millions in assets but no income from them, you’re still on the clock.

The Roadblocks That Get in the Way

Most people don’t get stuck because they’re lazy. They get stuck because of:

• Not saving enough
• Carrying too much debt
• Living paycheck to paycheck
• Emergencies that wipe out savings

Take credit card debt as an example. The average balance is $8,600, and if you pay just $272 per month, you’ll be at it for 53 months and spend $5,600 in interest.

If you want freedom, the first step is cutting the chains and for many, that starts with credit cards.

3 Steps to Financial Freedom

Big Al and I recommend this simple process:

1. Inventory – Know your numbers: assets, liabilities, net worth
2. Invest – Grow your money through smart allocation
3. Sustain – Build systems to maintain freedom over time

Calculating your net worth is key. Add up what you own (bank accounts, retirement plans, real estate, etc.) and subtract what you owe (mortgages, loans, credit card balances). That’s your starting point.

And remember: always pay yourself first. Before you spend on wants, contribute to your 401(k), IRA, or savings account.

Taxes: The Sneaky Expense That Eats Your Freedom

Taxes are one of the biggest threats to financial independence. In California, a single filer earning $100,000 nets just $72,000 after taxes.

Want to fight back? Use:

• 401(k) and IRA contributions to lower taxable income
• Roth accounts for tax-free growth
• Capital gains strategies married couples can pay 0% on gains if income is under $94,000

And don’t forget: IRA and 401(k) withdrawals in retirement are taxed like ordinary income. Plan ahead, or risk surprise tax bills later.

Retirement Savings: It’s Never Too Early (But Don’t Wait)

The math is simple. If you start saving $700/month at age 30, you could hit $1 million by 65. Wait until 50, and you’ll need $3,500/month to get there.

That’s the power of compound interest time is your biggest ally.

If you’re self-employed, look into:

• Solo 401(k)s
• SEP IRAs
• SIMPLE plans

And if your employer offers a match? Don’t leave free money on the table.

Build an Emergency Fund (Before You Need It)

Before you start investing aggressively, make sure you’ve got 3–6 months of expenses saved in a high-yield savings account. This keeps you from falling back on high-interest credit cards during emergencies.

Also:

• Set up automatic bill payments
• Monitor your accounts
• Improve your credit score by paying on time and keeping usage low

Passive Income: The Secret Sauce to Sustainable Freedom

Want freedom? You need income streams that don’t depend on you clocking in.

Some options include:

• Rental properties
• REITs
• Dividend-paying stocks
• Social Security

If you wait until age 70 to claim Social Security, you’ll get 124% more than if you claim early. That’s a massive difference.

Plus, don’t underestimate side hustles like freelancing, consulting, or tutoring especially in the early stages of retirement.

Keep Adjusting Because Life Will

Markets change. Taxes change. Health changes. You need a plan that can adapt.

That’s why we talk about the 4% rule a guideline, not gospel. Some years, you may need to pull back to preserve your portfolio. That’s called managing sequence of returns risk retiring into a bad market could force you to sell investments at a loss.

Check in on your plan regularly and pivot when needed. Flexibility is freedom.

Final Thoughts

Financial freedom isn’t about getting rich. It’s about getting clear. Clear on your income, your expenses, your values, and your goals. It’s about using your money to support the life you want—not the other way around.

Whether you’re just getting started or refining your strategy, remember this: it’s possible. You can have a plan that works, a life that feels right, and a future you’re excited about.

You just have to start.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

The post How to Actually Reach Financial Freedom: The Strategy That Works appeared first on ROI TV.

The System Isn’t Designed to Make Me Rich

Let’s be honest: the economic system doesn’t reward people like me just for working hard. It rewards investors, not employees. Banks make billions off people who carry credit card debt. Corporations grow by encouraging us to spend more. The government hands out tax breaks to the wealthy who own assets—not to the middle-class worker trying to make ends meet.

And while inflation keeps eating into my paycheck, the prices of groceries, gas, rent, and everything else just keep climbing. If I didn’t understand how the system works, I might feel hopeless. But instead of giving up, I decided to take control of what I can.

Taking Ownership of My Financial Life

I used to think my financial problems were someone else’s fault—my employer, the government, the economy. But blaming the system doesn’t solve my problems. I had to stop pointing fingers and start asking myself tough questions. Was I spending more than I earned? Was I investing consistently? Did I have a plan?

Once I got honest with myself, I realized that personal accountability is my greatest financial asset.

How I Started Building Wealth

I began by following one rule: spend less than I earn. That meant cutting unnecessary expenses and setting up an emergency fund. My first goal was to save $2,000 for unexpected expenses—just enough to avoid going into credit card debt for life’s surprises.

Then I got serious about high-interest debt. I focused on paying off credit cards and payday loans, which can drain you with interest rates north of 20%. Once I had those under control, I turned to investing.

Always Be Buying

I didn’t wait for the perfect time to invest—I started with what I had. I follow a simple principle: Always Be Buying (ABB). Whether the market is up or down, I invest a set amount into index funds like VTI, SPY, or VOO. These give me exposure to the broader economy and top U.S. companies without needing to pick stocks.

To make it easier, I automated my investments so money gets pulled from my checking account every month. It’s hands-off, consistent, and effective.

Keeping It Simple and Staying Consistent

When I first started investing, I felt overwhelmed. I thought I had to know everything about the stock market. But I learned that simplicity wins. Broad market funds give me diversification without stress. I may make mistakes, but the biggest mistake would be doing nothing at all.

Playing the Long Game

Building wealth isn’t about overnight success. It’s about choosing discipline over comfort for a decade. I’ve committed to a “decade of sacrifice,” where I spend less, earn more, and invest the difference. If I stick with it, I know I’ll reach financial freedom—where my investments cover my living expenses, and I’m no longer dependent on a job to survive.

Bridging the Financial Education Gap

I wasn’t taught this in school. Most of us weren’t. We were trained to become employees, not investors. That’s why I’ve made financial education a personal mission—reading books, watching experts, and learning how the system works. If I want to succeed in a system built for investors, I have to think and act like one.

Final Thoughts

The system might not be fair—but I’m not powerless. By understanding how it works and taking responsibility for my financial life, I’ve started building real, lasting wealth. And the best part? Anyone can do it. It just takes commitment, consistency, and a willingness to start.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

The post Why So Many High Earners Are Broke and How I’m Building Wealth Anyway appeared first on ROI TV.