📆 Introduction: The Journey to True Financial Freedom
Grant Sabatier, the author of Financial Freedom, was once unemployed with only a few dollars in his bank account. In 2010, at age 24, he hit rock bottom. Fast forward five years: Grant became a millionaire by combining focused learning, relentless effort, and smart investing. His journey is now a blueprint for anyone who wants to achieve financial independence.
In this blog, we will explore the 7 Phases of Financial Freedom and see how Ritesh, a corporate professional from Mumbai, used these principles to transform his financial life.
Phase 1: Clarity – Know Your Number
Financial freedom begins with knowing what you want. Calculate your net worth and determine how much money you need to live comfortably.
Example – Ritesh’s Situation:
Age: 28
Monthly Expense: ₹70,000
Wants financial freedom by age 45
Expected life till 85 (60 years from now)
Using Grant’s formula: Required Corpus = Annual Expenses / Safe Withdrawal Rate (4%)
₹70,000 x 12 = ₹840,000/year
₹840,000 / 0.04 = ₹21,000,000 (₹2.1 Cr)
🔢 Inflation Adjustment (Assuming 6% inflation over 17 years): Future Value = ₹21,00,000 × (1 + 0.06)^17 ≈ ₹56,74,000
That’s the clarity Ritesh gained. Now he had a target!
Phase 2: Self-Sufficiency – Cover Your Basics
You earn enough to pay your bills without help.
Ritesh ensured he paid his rent, bills, and groceries without any debt or dependency. He tracked his spending and avoided credit card debt. He built the habit of budgeting.
Phase 3: Breathing Room – Break the Paycheck Dependency
Here, your income = expenses, but you start seeing financial breathing space.
Ritesh started freelancing on weekends and earned an extra ₹10,000/month. This helped him avoid touching his salary for non-essential expenses. The breathing room gave him peace of mind.
Calculation: ₹10,000 × 12 months = ₹1,20,000/year side income
Phase 4: Stability – Build a Safety Net
Once you save 6 months of living expenses, you’re financially stable.
Ritesh created an emergency fund:
6 x ₹70,000 = ₹4,20,000
He used liquid mutual funds and FDs
Phase 5: Flexibility – Start Investing Seriously
You have savings equal to two years of expenses. You can take calculated risks now.
₹70,000 × 24 months = ₹16,80,000 target
Ritesh invested in:
Mutual Funds (SIPs of ₹20,000/month)
Index Funds
Gold ETF
Expected Corpus in 6 Years @12% CAGR:
FV = ₹20,000 × [(1 + 0.01)^72 – 1] / 0.01 ≈ ₹20,000 × 108.29 = ₹21,65,800
He accumulated nearly ₹18,00,000 conservatively in 6 years. This gave him options to take a career break or start a business.
Phase 6: Financial Independence – Work Becomes Optional
You now have enough money to pursue dreams.
Ritesh took a 6-month sabbatical to travel and also launched a small edtech startup using his savings. His passive income from investments was ₹30,000/month.
Phase 7: Abundance – Beyond Money
You have more than enough. Passive income exceeds lifestyle needs.
Ritesh’s net worth crossed ₹3.2 Cr by age 45. He worked on passion projects, mentored young professionals, and lived a purpose-driven life.
✨ Bonus: Grant Sabatier’s Core Strategies
1. Calculate Your Freedom Number
Use the 4% rule and your monthly expenses to get a clear goal.
2. Track Your Net Worth
Ritesh used a simple Excel sheet. Assets – Liabilities = Net Worth.
3. Understand Time for Money
If Ritesh earns ₹1,50,000/month and works 180 hours, his time is worth ₹833/hour. That helped him prioritize high-value work.
4. Cut Costs Smartly
He optimized food costs, reduced subscriptions, and negotiated rent.
Savings Example: Reduced 3 subscriptions of ₹499 each = ₹1,500/month × 12 = ₹18,000/year saved
5. Maximize Income
He asked for a salary hike, switched jobs, and learned new skills.
Income Jump Example: Switched job with 20% hike on ₹1.5L = ₹30,000/month extra
6. Start a Side Business
Ritesh created a digital course that now brings passive income.
Course Income: ₹1,000 × 50 students = ₹50,000/month
✅ Call to Action:
Start your journey to Financial Freedom today. Set your goals. Track your net worth. Create side income. And invest smartly.
For personal financial planning, visit www.mycashflowhub.com
☎️ Call/WhatsApp: 8850511869
📧 Email: info@mycashflowhub.com
Read → Apply → Grow: Your journey to financial freedom starts now.
