About this Video

• Video Title: MILLIONAIRE EXPLAINS: How to Change Your Finances in 6 Months
• Channel: Rose Han
• Speakers: Rose Han
• Duration: 00:14:02

Introduction

This video outlines a six-month plan to improve personal finances. Rose Han, a self-made millionaire, details actionable steps for each month, focusing on clarifying financial goals, tracking net worth and expenses, aggressively paying down credit card debt, negotiating expenses, increasing income through proactive measures at one's current job, and finally, strategically allocating surplus cash flow into various savings and investment accounts.

Key Takeaways

• Month 1: Define your "why." Clarify your reasons for wanting financial freedom to maintain motivation.
• Month 2: Assess your current financial situation. Calculate your net worth (assets minus liabilities) and track income versus expenses to understand your financial baseline.
• Month 3: Aggressively tackle credit card debt. Cut up credit cards, avoid further use, and implement 10-day "sprints" focused on rapid debt reduction through additional income sources and eliminating discretionary spending.
• Month 4: Negotiate expenses. Negotiate lower rates/fees on bills (cable, internet, insurance, etc.) and optimize the "big three" expenses (food, transportation, housing) for significant savings.
• Month 5: Increase income. Proactively seek opportunities for raises or bonuses at your current job by taking on projects that demonstrably increase profitability or efficiency. Explore creating a leveraged income stream (e.g., online course, music royalties).
• Month 6: Build wealth. Allocate surplus cash flow according to a "financial waterfall" strategy: emergency fund, 401k match, six-month emergency fund, Roth IRA, health savings account, debt payoff, and taxable brokerage accounts for investment.

In Month 5, Rose Han gives the examples of creating and selling a piece of music for royalties (passive income from sales) and creating and selling an online course (repeated sales of one product) as leveraged income streams that don't require a continuous trade of time for dollars. She also mentions artists selling art online and personal trainers creating and selling workout/meal plans as further examples.