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Graham Stephan leads by example.
A self-made millionaire by 26, he has learned to save almost all of his income.
His financial independence gives him the freedom he values more than any possessions.
Its so much more than just being frugal and saving money, he says in aYouTube video.
House Hacking
Housing is most peoples biggest expense.
According to the Urban Institute, the average American spends 30% of their income on housing.
Ideally, the rental income from the other units would cover the cost of ownership.
Rental Hacking
For people who cant afford a down payment, Stephan recommends rent hacking.
For those who cant afford a full unit, Stephan recommends living with roommates to save money.
Those savings would go into a down payment fund so you could house hack or apartment hack sooner.
Car Hacking
Car hacking is about losing as little to depreciation as possible.
Stephan recommends buying a car around that sweet spot, ideally below market value.
Hes used this technique twice, selling the car a few years later for the price he initially paid.
Then, repeat the process with a new card.
There are a few caveats, Stephan says.
Also, paying the card off in full every month is essential.
Its really important never to pay a single dime in interest, he warned.
Everyday Frugality
Eating and making coffee at home is popular advice for good reason.
If you save $15 a week making coffee at home, that totals $780 annually.
He applies the same logic to dining.
He eats at home whenever possible and orders cheaply when he goes out.
He tells viewers to order appetizers instead of entrees and skip the drinks during social events.
Exceptions for special occasions are OK, he said.
I value the experience much more than if I ordered a $12 drink every time I went out.
He also believes in reducing the cost of going out by finding free parking.
you might avoid overpaying for garage parking if you dont mind walking farther.
This hack is a bigger deal in cities where parking costs hundreds a month.
He encourages people to think about spending as earning.
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