Is it possible to become a rentier in a few years?

When we start to take an interest in financial independence, we often imagine that we can find a magic method that will allow us to become an annuitant in a few years. In theory, it is possible, but in practice it is most of the time very different.

 The pattern is often the same. One evening we come home from work, exhausted, and we wonder how to escape the nagging ordeal of metro-work-sleep. We start tapping on the Internet and very quickly we come across more or less valid sites that talk about financial independence.

Some blogs retrace their author's quest to become a rentier. Forums share their members' opinions on how to save and invest their money. Finally, other sites entice you with enticing titles and slogans and offer you, often at low prices, services that are not always very relevant. Outside the Internet, there is also a large selection of books on the same subject.

Although the approaches differ significantly depending on the authors, real estate, stock market, parking, a large majority assume that one can become an annuitant in the space of just a few years. Should we believe them? The answer is not simple, as the financial situation and personality of each person is different.

It is normally easier for a high income to save significantly, to invest their savings and therefore to become a rentier fairly quickly. But most of the time the expenses are proportional to the salary. The more you earn, the more you have a lifestyle that goes with it, house, car, travel, and there is not necessarily more left over per month. Similarly, depending on your personality, we are more or less spendthrift, more or less inclined to invest our money in a relevant way and more or less able to remain faithful to our initial objectives.

What is certain is that to become financially independent, you must build up capital that will be able to generate enough income in the future to cover all your expenses. You must therefore start by managing to put aside a certain amount of money each month, which is not necessarily easy. This sometimes means starting by repaying certain "bad" debts. It can also mean giving up certain habits. Some people sometimes take on a small sideline. While this may be necessary for a short period of time, it is counterproductive in the long term. Remember, you never get rich by working.

Then, when you finally manage to save up your first few dollars, you have to invest them. This isn't easy either. If you never get rich by working, you don't get rich by leaving your savings in a savings account either. So, you have to learn about the different assets available, real estate, stocks, investment funds, ETFs, bonds, Forex, commodities, etc. Then, and above all, you have to decide on your risk tolerance and choose the investments that go with it. Last but not least, you still have to understand how the investments you have adopted work, and of course start your first attempts. Once this is done, if you have made a mistake, you may have to start the process over several times from the beginning until you are sure you have found the right shoe for you.

So far, we have only laid the foundations, learned and had our first experiences. Unless we inherit or win the lottery, the capital invested is modest and is only just beginning to generate its first income, not always regularly. We are still very, very far from the idea we have of an annuitant. But we have nevertheless passed a decisive milestone, the one where we can almost put ourselves on autopilot, and therefore wait.

Little by little, capital grows, thanks to the savings and income it generates. As time goes by, wealth and distributions increase, exponentially. At first, it seems like nothing is happening, and at some point, you realize, almost with astonishment, that you have made a lot of progress.

Then there comes a critical moment when you can start to consider living differently. This may mean taking your foot off the pedal at work, worrying less, or even at a certain point "retiring" altogether.

In parallel with this purely financial progression, the habits of the future rentier must change. First when he has to save, then when he invests and finally when he gradually leaves the professional world. Training in financial "techniques" takes time, but changing one's habits takes even longer. Sometimes we never even manage to do it.

We realize that all this requires not only knowledge, but above all to go through many experiences, good or bad. We must see the quest for financial independence as a kind of initiation rite. A few years are not enough to "become a rentier", it is the project of a lifetime. The good news is that you can put yourself in (future) rentier mode and begin this beautiful journey from today.