Who said that teachers can’t earn enough to live?

Listen to the story of how Ed Mills, from The Millionaire Educator, became a millionaire on a teachers’ salary.

In their early 30s, Ed Mills (The Millionaire Educator) and his wife had $45,000 in student debt and both of their cars were finished. Along with their marriage, they added a new member to their family, their son.

Ed Mills recounts how he went from -$45,000 to over $1,000,000

• After graduation, Ed and his wife found themselves in debt.
• He finds a teaching opportunity in Saudi Arabia where salaries are higher and expenses were lower because they living in an ex-pat compound.
• Lesson: Be willing to move to where the money is.
• After the tragedy of 911, Ed moved back to Georgia, where teachers’ salaries had increased.
• After 7 years of full-time work, the Mills family had accumulated $450,000
• After many travels, Ed had come to the conclusion that we, in North America, have many opportunities. Our poverty level pales in comparison with the poverty of countries such as Brazil, Honduras, El Salvador.
• He also noticed how some entrepreneurial immigrants come to the States and within a few years, they manage to have a house and a business.
• There are plenty of opportunities, we just have to be willing to find them. We carry a supercomputer in our pockets. We have all the tools necessary to succeed.
• From the year 2009 to 2016 the Mills family took their portfolio from $450,000 to $1,000,000 just by spending less than they earn and investing the rest.
• At the time of this call, the Mills family was taking a year-long vacation in Merida, Mexico.
• He adopted his investment philosophy from J. L. Collins Stock Series.
• While living in Mexico, the monthly expenses for a family of 3 were $1,500. While living in the States, their expenses are $1,800.

• The lower my overhead, the more aggressive I can be with my investments. Because I don’t need the money, I am in a position of power.

• Because he doesn’t need the money, he can take bigger risks. Because he can take bigger risks, he can make more money.
• Ed and his wife will get a pension at age 60. This pension will provide them with a secure income. This secure income will help them withstand the ups and downs of the stock market.

How to be frugal

• People buy too much house. Try to make do with a smaller house. A bigger house only gives you more storage space for more stuff.
• Save as much as possible in transportation. Walk, use your bicycle, or if you have to drive, only get a second-hand vehicle. Focus on practicality, not on non-essential factors.
• Stop eating out. You can have better quality food at home for much less money.
• You don’t need the latest iPhone. Ed has an old Android phone with no data plan. It only works with wifi. For this, he pays $0. His wife has a plan where she only pays $10 per month.
• Don’t pay for cable TV.

Other lessons learned from Ed Mills

• Advertisers have a great influence on our spending behavior. One way to fight that is to watch less TV.
• The Millionaire Educator paid $68,000 for his new house. People don’t need to buy a big expensive house.

• When people save, they are not depriving themself of anything. They are buying power over their lives; money buys them stability; saved money gives people options.

• Frugality has never been a sacrifice, it’s a way of life. Frugality is a better way to co-exist with nature. It creates less waste.
• Because they are frugal, their son has grown with a frugal mindset.

Books recommendation from Ed

1. The Lost City of the Monkey God

2. Cashing in on the American Dream

Thoughts from Alain

This was an amazing conversation. For years I have been hearing that teachers don’t earn enough and I do agree. Considering the amount of work teachers do and the level of responsibility they have in their hands, I think that teachers are grossly underpaid.

But the most important lesson is that no matter what’s our profession, nor our salary if we live a frugal lifestyle, if we cut out the waste if we spend less than we earn and then invest that money on low-cost index funds and ETFs, Anyone has the opportunity to become financially secure.

Resources:

I found out about Ed Mills through a podcast episode posted by  The Mad Fientist. Thank you, Brandon.

Thank you to Raja, for the artwork on the podcast and YouTube Channel.

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