#59: Andrew Hallam: How I Became a Millionaire on a Teacher’s Salary

“I was working at a bus depot,” says Andrew Hallam, describing the summer that changed his life.

“I was 19, and I was saving money for college. It was a night shift, and there was a mechanic there [named Russ]. Everybody said to me — if Russ wants to talk to you about money, make sure you listen to him.”

Andrew harbored doubts.

“I thought, why would I listen to a mechanic about money?”

Fortunately, though, Andrew took their advice.

Russ became an unexpected mentor. He taught Andrew the power of investing small amounts over long periods of time. He encouraged Andrew to use part of his lunch money — $3.50 per day, or around $100 a month — to open his first investment account.

Andrew listened. He invested small sums throughout college, often as little as $100 a month.

After graduation, he accepted a job as an English teacher. His salary amounted to $28,000 per year in take-home pay (after taxes). Andrew saved nearly half.

He avoided rent payments, placing advertisements in the newspaper in search of house-sitting side gigs. He rode a bicycle to work; he showered and shaved after he arrived. He bought pasta and potatoes at the grocery store, but picked his own clams for added protein.

He repaid $12,000 in student loans within one year of graduation. Then he aggressively began investing in the market.

By his mid-30’s, Andrew became a millionaire on a teacher’s salary.

And by age 40, Andrew was more-than-comfortably financially independent.

In today’s interview, Andrew shares his story.

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Andrew wrote a book called Millionaire Teacher: Nine Rules of Wealth You Should Have Learned in School.

In the latter half of today’s episode, we cover the first three rules of wealth:

• Rule 1: Spend like you want to grow rich. (Don’t waste money on junk.)
• Rule 2: Use the greatest financial ally you have. (Time.)
• Rule 3: Small percentages pack big punches. (Avoid high-fee funds.)

In next week’s episode, we’ll cover Andrew’s other six rules for building wealth.

Enjoy!

— Paula

Resources Mentioned:

Books:

• Millionaire Teacher, by Andrew Hallam
• The Investor’s Dilemma, by Louis Lowenstein
• Your Complete Guide to Factor-Based Investing, by Larry Swedroe and Andrew Berkin
• A Random Walk Down Wall Street, by Burton Malkiel

Websites:

• HFRX Hedge Fund Indices
• SPIVA Performance Scorecard
• Portfolio Visualizer
• The Hulbert Financial Digest, from Mark Hulbert
• Moneychimp.com

Connect with Andrew:

• Andrew’s blog
• Millionaire Teacher on Facebook

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