YouTuber Andrei Jikh Shares the Key To Achieving Financial Freedom

Andrei Jikh runs a personal finance YouTube channel focusing on investing and financial minimalism, which has amassed more than 2 million subscribers. Jikh uses the tagline “Magic of Finance” as a reference to his skills as a magician. He has been featured on shows like “Steve Harvey” and Nat Geo’s “Brain Games.”

Recognized by GOBankingRates as one of Money’s Most Influential, here he shares the calculation you need to know to achieve financial independence and why you are a better investment than crypto.

What’s the one piece of money advice you wish everyone would follow?

Figure out your “why.” I wanted to buy the ultimate luxury money could ever buy: freedom. I calculated my expenses (food, transportation, housing, entertainment, etc.), then multiplied my yearly lifestyle cost by 25. That’s the golden rule of 4%. If you can save 25 times your yearly income and invest that at 4%, you have achieved “financial independence.” At that point, your money will grow faster than you can spend it — assuming you don’t inflate your lifestyle — and the infinite money glitch will be unlocked! If you want to be extra safe, aim for 30 times yearly expenses.

Building Wealth

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What’s the most important thing to do to build wealth?

Building wealth is about investing in yourself first. Before thinking about YOLO-ing into some risky crypto, focus on increasing your income and the rest will come much easier.

What’s your best tip for fighting the impacts of inflation?

If you’re on the older side, look into I bonds. [These are] bonds indexed to inflation and right now they’re paying a 9.6% interest. If you’re younger, investing in the S&P 500 has always been profitable over a 20-year rolling period. Just stay invested and don’t try timing it. If you have a bigger risk appetite, put 10% of your net worth into bitcoin and you’ll most likely outperform the stock market.

What’s the biggest mistake people make when it comes to money?

We look up to people that have luxury cars and mega mansions, but their lifestyles depend on their income. If their income disappears, so does their lifestyle. Instead, focus on living below your means and buying the ultimate luxury money can buy first — the fancy stuff comes later.

Building Wealth

Jaime Catmull contributed to the reporting for this article.

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About the Author

Gabrielle joined GOBankingRates in 2017 and brings with her a decade of experience in the journalism industry. Before joining the team, she was a staff writer-reporter for People Magazine and People.com. Her work has also appeared on E! Online, Us Weekly, Patch, Sweety High and Discover Los Angeles, and she has been featured on “Good Morning America” as a celebrity news expert. 

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