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From $5,000 to $28,000: A Math Teacher’s Remarkable Financial Transformation Through 6 Strategic Decisions

Upon laying eyes on his inaugural paycheck, Steve Chen recognized the impending insufficiency of his chosen profession. Commencing his journey as a public school educator in 2014, instructing middle-school students in mathematics within Los Angeles, Chen found the remuneration to be notably inadequate.


His earnings barely surpassed $5,000 each month before accounting for taxes and deductions. Following the necessary reductions for taxes and benefits, the residual funds scarcely afforded him the liberty to savor life according to his aspirations.

“Residing in California comes with exorbitant expenses, ranging from taxes to daily necessities and the cost of living. After crunching the numbers, I realized that even if I adopted an extremely frugal lifestyle, scrimping on expenses and possibly resorting to just eating ramen, and managed to save around $500 or $1,000 monthly in both my checking and savings accounts, it wouldn’t translate to a comfortable retirement,” Chen candidly shared. “That pivotal realization prompted me to embark on a transformative journey.”


Turning to the internet, he initiated a quest to explore how others were achieving early retirement. Fast forward six years to February 2020, when, at the age of 33, he bid farewell to his conventional employment. By diligently accumulating sufficient funds for investment-based sustenance, he realized his dream. Today, he enjoys the luxury of four diverse income streams that collectively yield around $28,000 monthly, affording him the freedom to determine his desired level of engagement in work.


In his capacity as an educator, he has seamlessly transitioned to a role where he imparts knowledge on achieving financial independence. Operating under the banner of his website, “Call To Leap,” he devotes his energies to guiding others along the journey he himself has undertaken. Beyond his website, he has also garnered a substantial TikTok following of over 700,000 users. On this platform, he employs succinct video content to elucidate uncomplicated financial concepts.


Below, Chen graciously shares with Insider the narrative of his accomplishment in attaining financial independence. Moreover, he provides insights into the strategies, tactics, and illuminations that shaped his journey, offering valuable guidance to those seeking a similar transformation.

1. He opened a brokerage account and started investing

Chen’s initial perception of the stock market was one of exclusivity, reserved for affluent individuals. However, his perspective evolved as he delved into early retirement strategies, uncovering a truth: people from various backgrounds were engaging in gradual, regular investments over extended periods. This realization prompted him to venture into the world of investing, leading to the opening of his inaugural brokerage account.


“I embarked on this journey with limited knowledge. Initially, I purchased stocks from companies that were familiar to me from my daily experiences,” Chen recounted to Insider.

In due course, Chen’s exploration led him to the world of exchange-traded funds (ETFs), where he made a remarkable realization: he could invest in a comprehensive fund that encompassed not only the companies he already held shares in but also a broader spectrum of options. He initiated investments in ETFs like the Vanguard 500 (VOO), designed to mirror the S&P 500. This decision yielded a consistent annual growth of 10% within his portfolio.


While the journey entailed its share of trial and error, Chen candidly admits that it wasn’t without its challenges, and he did experience financial losses at times. He underscores the importance of extensive reading and cultivating the right mindset before embarking on an investment journey. This proactive approach, he suggests, can contribute significantly to navigating the complexities of the investment landscape.

2. He slashed his budget to save more money

Over time, Chen witnessed his portfolio grow and realized that it was working. It encouraged him to live frugally so that he’d have more money to invest.

He began looking for ways to save every month. One of the biggest cutbacks he made was eating out. He started meal prepping every Sunday, making his lunch for the entire week. It saved him $120 a month.


He found alternate ways of spending his leisure time that didn’t include spending money or buying things. Instead of going out for dinner on weekends, he and his friends started hiking, going to the gym, and playing board games at home. It allowed him to save around $400 per month.

He became strategic with which credit cards he used to maximize cash back opportunities. He kept a calendar that showed him which card was offering cash back during a certain season. When he purchased something, he’d use the card that would save him the most money. He regularly rotated between Chase FreedomBank of America Cash RewardsChase Freedom Unlimited, and Chase Sapphire Reserve. This strategy got him about $50 to $100 cash back each month.

He’s also a bargain hunter. Rather than buying expensive designer clothes or overpriced household items, Chen often shopped in the clearance section. When it came to clothes, thrift stores were his go-to. They weren’t only easy on his pocket, but good for the environment, too. As for everyday necessities, anything he knows he’ll need that doesn’t have an expiry date is bought in bulk, saving him around $10 to $20 per trip to the store each week.

3. He started a side hustle to boost his income

Once Chen optimized his savings, he turned his attention to boosting his income. Drawing upon his teaching expertise, he ventured into tutoring during his off hours. This initiative commenced with a few additional weekly hours, translating into an extra income stream ranging from $1,000 to $2,000 each month. Through the ripple effect of referrals, the momentum of his tutoring side hustle steadily swelled, augmenting his earnings. This supplementary income was promptly directed into his brokerage account.


As revenue from his tutoring endeavor increased, Chen’s entrepreneurial spirit blossomed, prompting him to embark on scaling his tutoring business. Presently, he dedicates a few hours each day to tutoring, which yields a substantial supplementary monthly income of $8,000. This transformative journey exemplifies how strategic decision-making, skill utilization, and the cultivation of an entrepreneurial mindset propelled him toward his financial aspirations.

4. He started a second side hustle teaching what he’s learned to others

Leveraging his accumulated knowledge, Chen innovatively harnessed his expertise by creating educational content for others. Through various platforms like his website, TikTok, YouTube, and sponsorship agreements, he’s successfully transformed his insights into teachable formats. Collectively, these outlets contribute approximately 35% of his total monthly income, showcasing his adeptness at capitalizing on his acquired wisdom to generate new revenue streams.


“When I embarked on my investment journey, I often felt isolated. I lacked individuals to converse with—my parents and coworkers were unfamiliar with the stock market. Seeking guidance left me uncertain about where to turn,” Chen recounted. “Driven by this, I aspired to forge a secure community for those who shared a similar mindset. This community is now thriving on our website.”

With a substantial following across diverse platforms, Chen’s online presence enables him to earn through social media companies, such as TikTok, which compensate him based on viewership. Brands also extend sponsorships for select videos he creates. By crafting concise, educational content about financial concepts, he generates substantial revenue ranging from $1,000 to $1,500 per video from these sponsorship collaborations. This adept integration of his passion for teaching and financial expertise showcases his ability to nurture both knowledge-sharing and income-generating endeavors.

5. He added real estate to his portfolio

Chen used money he saved up from working his side hustles to purchase two single-family homes. He rents those properties out for additional income and they make up a small percentage of his monthly revenue.

6. He had an emergency fund before he ventured on his journey

Although Chen had ups and downs on his journey to financial independence, he always had an emergency fund set aside. He still keeps about six months of his living expenses in that fund.

Today, Chen generates a great deal more income than he used to, but he still sticks to the same principles of living below his means while continuing to build wealth. His focus now is on continuing to share his wisdom and spreading positive wealth habits so that others can reach their potential.


“I felt like there was a lot of pressure lifted off my shoulders [when I reached financial independence], because I felt like I had so many more options in my life, like I can do whatever it is that I want now. I am not so tied down to this job where I have to be at this place at a certain time,” Chen said. “Now I am in control of my own time. I have my own business. I get to be very creative in what it is that I do. I just felt free.”

Source: entrepreneur.com

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