Have you ever wondered why some people manage to retire early, living in freedom and tranquility, while others work all their lives and are still stuck with debts, bills and the constant fear of unemployment? Well, the truth is that financial education isn’t taught in schools, and many only learn the hard way – when it’s too late.
I myself have seen very intelligent friends, with good jobs and high salaries, fall into the trap of impulsive consumption and easy credit. What’s worse, they thought they were in control. The reality, however, is that financial freedom is not about how much you earn, but how you use what you earn. And if there’s one thing I’ve learned (and want to share with you today), it’s that you can build a peaceful future – and even retire before you’re 40 – as long as you follow a few basic rules.
How about starting this journey?
What if I told you that “financial freedom” isn’t just for heirs, influencers or the lucky ones on the stock exchange? Yes, it’s much closer than you might think. But to get there, you have to confront one of the biggest illusions of the modern world: the idea that looking rich is more important than being free.
Let me tell you a true story (it sounds like fiction, but it’s not). Two friends – I’ll call them Pedro and Rafael – started out at exactly the same point: same age, same education, same salary of R$5,000. But their choices led them to completely opposite destinies.
Pedro rushed to make his “consumer dream” come true: an apartment financed in 30 years, a brand new car in the garage, a credit card with a high limit and a lot of partying. He looked successful. On the outside, he was the man. On the inside, he was hostage to every installment.
Rafael, on the other hand, took the opposite route: he opted for a modest rent, a used motorcycle and strict control of his expenses. He lived below his means – not out of poverty, but out of strategy. While Pedro mocked his friend’s “silly savings”, Rafael invested quietly every month… and built his way out of the rat race.
The truth is that society pushes us into a vicious cycle of consumption from an early age. Banks offer easy credit as soon as you sign your first work permit. Retailers encourage endless installments. What’s worse, we end up believing that having things is synonymous with happiness. But it’s not.
In reality, those who live for appearances are always chasing their own tails. What about Rafael? The one who seemed like a “cheapskate” to others? He was building something that few understood at the time: freedom.
Have you ever found yourself thinking: “But do I really need that car? That apartment with a mortgage? Those designer clothes?” – just because everyone around you seems to have it? Yes, my friend, you’re not alone. Social pressure is one of the biggest financial traps there is. And if there’s one thing that Pedro and Rafael’s story teaches us, it’s that freedom > appearance.
Let’s face it: nobody posts on Instagram about their spending plan, the size of their emergency reserve or the dividends that have flowed into their account. Everyone posts their trip, their car, their fancy dinner. And that’s where the danger lies. We start comparing our reality with the illusions of others – and lose focus on what really matters.
But if you really want to turn the tables, you need to face up to the 5 rules of financial freedom that nobody tells you – but which will make total sense in your life:
1. The Golden Rule: Don’t get into debt
Sounds obvious, right? But this is where almost everyone falls down. Long-term financing, revolving credit cards, loans… all of this is a black hole that sucks away your future income.
Pedro, in our story, thought he was “building wealth” when he bought the apartment he was financing. He just forgot that, in the meantime, he was transferring his freedom to the bank.
My opinion? Debt that doesn’t generate income or real value is a liability in disguise. Run from it like the devil runs from the cross.
2. The 75-15-10 Rule: Get organized without frills
That’s the basis of everything.
- 75% for essential expenses (housing, food, transportation);
- 15% for investments;
- 10% for emergency reserves.
Yes, it’s simple. And that’s precisely why it works. Rafael wasn’t a financial genius – he was just disciplined.
When his emergency reserve was 3 to 6 months of his expenses, invert it: increase investments to 25% and reduce the percentage of the reserve. That’s how he started to accelerate his wealth building.
3. Invest Soon – Even If It’s Small
Some people think that investing is something for the rich. That’s a lie!
Investing is for people who want to get rich – not the other way around.
The Rafael in our story started out with monthly contributions of R$900 in the Selic Treasury and R$500 in shares. Didn’t seem like much?
Well… those R$1,400 a month, with discipline and compound interest, turned into money that completely changed the game years later.
My opinion? Don’t wait until you have money left over to invest. Make it.
Automate your investments as soon as your salary drops.
And don’t fall for anyone who says that “the stock market is a casino”. Those who say this usually don’t understand – or have lost money due to a lack of strategy.
4. Compound Interest Is Your Best Friend – Or Worst Enemy
Here’s the magic math – and I’ll make it simple because nobody deserves a complicated formula.
Compound interest is interest on interest.
In other words: your money earns interest, and the following month it earns interest on top of the total that is already there.
It doesn’t sound like much, but over time… wow.
Back to Rafael’s example:
If he invested R$500 a month with an average return of 1% a month (approximately 12% a year), in 10 years he would have more than R$115,000 – and he only deposited R$60,000.
The rest came from interest.
Now imagine that over 20, 30 years…
That’s why starting early is EVERYTHING.
Every year you waste waiting for “the right time” is one less year of interest working in your favor.
5. Financial Freedom ≠ Being a Millionaire
This is where many people get lost.
Financial freedom doesn’t mean having millions in your account – it means having options.
It’s about being able to say “no” to a job that exploits you.
It’s about being able to travel without asking anyone’s permission.
It’s about sleeping soundly knowing that, if something goes wrong, you have a financial cushion to support you.
Rafael wasn’t a millionaire at 32.
But he had enough passive income to cover his expenses and still have money left over.
That’s freedom.
Pedro… well, Pedro had a brand new car in his garage and 30 years’ debt.
He looked rich, but he was a slave.
So, have you identified which stage you’re at?
If you need help taking the first step (or reorganizing your finances), just give us a call!
And remember: it’s not about how much you earn. It’s about what you do with what you earn.
