What can CD Baby founder Derek Sivers teach us about being frugal? How did he manage his finances? What was his mentality around income? In this video, David recounts what Sivers shared with him.
In 2009, I got to interview the founder of CD Baby, Derek Sivers. At 22, Derek quit his job, became a musician, and never looked back.
Now, I asked him how it is that he was able to do this, and what he told me was that he lived within his means. Many of us will interpret that to mean we should spend every dollar we make, whether we know it or not.
That’s how we think about living within one’s means, and that’s not how it works at all.
Derek said he didn’t get a car, he always took the subway, and he never went out to eat unless someone was treating him.
This is a commonality among many successful people I know, that they live below their means.
When you’ve got a year’s worth, or maybe even two year’s worth of expenses saved up, you don’t have to say “Yes” to projects that you don’t want to take on anymore. It’s a form of freedom you can’t earn any other way.
So, if you enjoyed this insight and you’d like more like it, check out my new book, Productivity, Performance & Profits Blackbook.