How I Reached Financial Independence at 25 With a $1,000,000 Net Worth

Saving money on reached financial independence 000 does not have to be complicated. We rounded up the essentials so you can spend less and skip the guesswork.

Key Takeaways

• Do you want to reach financial independence and have the option to retire early?
• Today, I’m excited to share an interview with Cody Berman, an entrepreneur, real estate investor, and personal finance expert who reached fi...
• Cody’s story is especially interesting because he didn’t follow a traditional path or wait decades to build wealth.

Do you want to reach financial independence and have the option to retire early?

Today, I’m excited to share an interview with Cody Berman, an entrepreneur, real estate investor, and personal finance expert who reached financial independence at just 25 years old.

Cody’s story is especially interesting because he didn’t follow a traditional path or wait decades to build wealth. Instead, he focused on increasing his income, keeping his expenses low, and investing consistently. In just a few years, he grew his net worth to over $1,000,000, built multiple income streams, and created a life where work is completely optional.

Since then, Cody has helped thousands of people learn how to build wealth and gain more control over their time and money. He also recently wrote a new book, Retire by 30: How to Build Wealth, Gain Freedom, and Live Life on Your Own Terms, which shares a step-by-step plan for reaching financial independence faster than most people think is possible.

I recently read Cody’s book and I ended up flying through numerous chapters in just one day because I honestly enjoyed it so much. The book felt encouraging and real at the same time, and it explained financial independence in a way that felt doable, not overwhelming. Because I enjoyed the book so much, I asked Cody if he would do an interview here on Making Sense of Cents (he said yes!).

In this interview, Cody shares exactly how he did it, including how he increased his income so quickly, how he kept his expenses low, and how he built both stock market and real estate investments.

He also answers questions like:

• How can you calculate your financial independence number?
• What are the best ways to increase your income?
• What are realistic side hustles you can start today?
• How do you invest if you want to retire early?
• What does life actually look like after reaching financial independence?

And more.

How I Reached Financial Independence at 25 With a $1,000,000 Net Worth

If you’ve ever wondered if early retirement is possible for you, or you just want more flexibility and freedom in your life, then this interview is packed with helpful tips and real-life advice.

Note: Cody might sound familiar because he’s been featured here on Making Sense of Cents before, such as in the article How I Made $6,161 in Just 4 Months With a New Etsy Printables Shop. He’s always a wealth of knowledge!

1. Tell us your story! Who are you, and how did you reach financial independence so quickly at such a young age?

Hey! I’m Cody Berman. Some of you might have come across me if you’ve ever looked into selling digital products, but I’m also really passionate about personal finance.

I first learned about financial independence after reading The 4-Hour Workweek by Tim Ferriss. That quickly sent me down the rabbit hole. I started reading blogs like Mr. Money Mustache and The Mad Fientist, and listening to podcasts like ChooseFI and BiggerPockets Money. Within no time, I was completely obsessed with the idea of achieving financial independence.

Like a lot of people, I started on the “traditional” path. I got a finance job paying $80k straight out of college and thought I was doing everything right. But between the two-hour commutes, eight-plus hours in a cubicle each day, and being surrounded by coworkers and bosses who didn’t seem happy, I quickly realized this couldn’t be what life was all about.

So I started plotting my escape.

On the train ride to work, on my lunch break, on the way home, and at night, I was building side hustles and testing business ideas. After seven months, I had saved $35,000 from my job, and my side hustles were bringing in about $1,200 per month. That’s when I decided to take the leap into full-time entrepreneurship.

I remember thinking, “If I can make $1,200 a month while working full time, what could I do if I went all in?”

The next three years were all about scaling those side hustles, keeping my expenses low, and investing the difference. By the end of year three, I had gone from almost nothing to over $500,000 invested in the stock market, 11 rental properties, and a thriving digital products business.

That three-year stretch was intense, but it ended up being one of the best decisions I’ve ever made.

2. What has your income, savings rate, and net worth looked like over those years?

During the three years it took me to reach financial independence, my income climbed quickly, but my expenses stayed almost exactly the same.

In year one, I made $96,000 and spent $24,000, which gave me a 75% savings rate. By the end of the year, my net worth was around $179,000.

In year two, I made $198,000 and still only spent $24,000, increasing my savings rate to 88%. My net worth grew to about $392,000.

In year three, I made $403,000 and kept my spending at $24,000 again, bringing my savings rate up to 94%. By the end of that year, my net worth had crossed $1,035,000.

Even though my income was growing fast, I didn’t inflate my lifestyle. Instead, I invested the difference into the stock market and real estate, which both performed well during that time.

I’ll break down the specific strategies I used to increase my income and keep my expenses low later in this article, but this is the key idea: the gap between what you earn and what you spend is everything.

If you can consistently widen that gap, financial freedom becomes a lot closer than you think.

3. A lot of people hear terms like FI, FIRE, and early retirement and feel confused. Can you explain what these mean in an simple-to-understand way?

Absolutely. Personal finance can seem confusing with all the different acronyms, but the concepts themselves are pretty straightforward.

FI stands for Financial Independence. This is the point where your investments and passive income streams fully cover your lifestyle. Once you reach FI, you no longer have to work for money.

FIRE stands for Financial Independence, Retire Early. Once you hit FI, you have a choice. You can keep working, or you can step away from work completely. That’s the “RE” part. Personally, I’ve reached FI, but I haven’t “FIRE’d” because I still enjoy working on the businesses and projects I’m building.

Early retirement is where a lot of people get confused. Most people think of retirement as an age, but it’s really a number. It comes down to a simple math equation. Once your investments can cover your expenses, you can retire. That could be at age 25, 47, or 53.

Early retirement just means you’re getting there faster than the traditional path of retiring at 65.

4. Do you think someone has to fully stop working in order to be financially independent, or can FI look different for different people?

Financial independence comes in numerous different forms.

Here are seven of the main ones:

1. Mini-retirements are intentional breaks from work before traditional retirement age. Instead of saving all your freedom for the end of life, you take smaller breaks along the way to travel, rest, explore, or reset. They can be a excellent way to test what you actually want your post-FI life to look like.
2. Coast FI means you’ve already invested enough that it will grow to support you later without adding another dollar. You still cover your current expenses with earned income, but you don’t need to aggressively save anymore. It’s a huge mental shift because the heavy lifting is already done.
3. Barista FI is when your investments cover most, but not all, of your expenses. You work a part-time or lower-stress job to fill the gap, frequently for benefits like health insurance. It gives you flexibility without needing a full portfolio.
4. Lean FI is the most barebones version of financial independence. Your investments cover a very minimal lifestyle, so you have freedom, but not much room for extra spending. It’s ideal if you value time over comfort and are okay with living simply.
5. Cash Flow FI is when income-producing assets like real estate or businesses generate enough monthly cash flow to cover your expenses. Instead of selling investments, your income shows up consistently each month. A lot of people like this approach because it feels more tangible and predictable.
6. Traditional FI is what most people think of when they hear financial independence. Your investments can fully cover your current lifestyle. This typically happens when you have 25x your annual expenses invested. At this point, work is completely optional.
7. Fat FI is financial independence with a higher spending level. Your investments support a more comfortable lifestyle, with extra margin built in. It typically takes longer to reach, but it gives you the most flexibility and security.

There’s no “right” way to do it. Your version of financial independence depends entirely on you and your preferences.

Recommended reading: 18 Passive Income Ideas To Earn $1,000+ Each Month

Cody and his wife Lauren on a trip.

5. What does your day-to-day life actually look like now that you’re financially independent?

Even though I’m financially independent, that doesn’t mean I just sit around and sip margaritas on the beach. I still enjoy working on projects that excite me.

For about eight to nine months out of the year, this is what an ideal day looks like for my wife and me:

7:00 AM-9:30 AM: Gym and/or something active like running or walking9:30 AM-10:00 AM: Morning smoothie and practicing Spanish10:00 AM-12:30 PM: Work on our businesses or other projects12:30 PM-1:00 PM: Lunch1:00 PM-2:00 PM: Afternoon walk2:00 PM-6:00 PM: More work, projects, or business-related tasks6:00 PM-6:15 PM: Quick workout before dinner6:15 PM-7:00 PM: Cook and eat dinner together7:00 PM-9:30 PM: Spend time with friends, plan trips, watch TV, talk, etc.9:30 PM-10:00 PM: Read for a bit, then head to bed

For the other three to four months, we like to travel and spend less than an hour per day working.

You could say I like to work in “seasons.” Some months I’m fully focused and working hard on a project, like my recent book launch. Other months, I’m barely working at all.

The key for me is optionality.

Not having to work actually makes work more exciting and fulfilling. It allows me to focus on the projects I genuinely care about.

6. You kept your expenses under $2,000 per month. What did that actually look like in real life? What were you spen

Final Thoughts

The bottom line: a little research on reached financial independence 000 goes a long way. Compare your options, watch for seasonal offers, and never pay full price when a better deal is one click away.

Originally published at makingsenseofcents.com.