I spoke to a few of my friends at a get together not too long ago and I was listening to their aspirations. Lots of them knew what they wanted to do but none really had an idea of how to get there. Of course, everyone wants to be financially stable. To do this you must know how to manage your money and build wealth, here is the less common methods I have been able to find.
Quick Disclaimer: There is no instant method to wake up tomorrow a million dollars richer. However, there are proven techniques and strategies you can use to build wealth quickly, starting from no money at all.
Build your own business.
Every wealthy person owns a business. I am not saying you have to become a master day trader or a real estate expert investor. You simply need a skill or interest. Think of ways you can turn nothing into something. What skills are people dying for that you have? You can be a freelance writer, blogger, store owner, franchise owner, real estate investor, etc. If you’re starting from nothing I would recommend Rich Dad’s Guide to Investing by Robert Kyosaki to get your foot in the door. The book will teach you the basic skills you need to create your business and build your assets.
Do not be discouraged if it’s not the most lucrative thing in the world at first, you have to build a customer base and a loyal following. These things are very possible, it just takes time. The mental battle is 70 percent of the journey.
Tax Free Millionaire
This one is pretty self explanatory and obvious, this current generation has no guarantees for retirement benefits. Do not rely on social security. Set up an account and pay whatever you can a month. Your future self will thank you immensely when you get that tax free check.
Budget, Budget, Budget
Budget your money and reinvest in yourself. Sacrifice that Starbucks latte, Chick-fil-A combo, and that super cool shirt that you cannot live without. Cut your expenses, consider getting a roommate, or buying a two, three or fourplex and live in one unit and rent out the rest to live rent free. In order to be financially free you have to make short term sacrifices. Take the money you’re saving and use it as a seed. Invest in index funds, save for your first real estate property. Star bucks isn’t going to care when you have to work into your 70s. Take care of yourself now so you don’t have to later.
Build your credit and clean out the mattress.
Build your credit any way you can. Never, never, never miss a payment. You should also consider getting a credit card with decent cash back rewards so that you can build wealth while also setting yourself up for success. With a good credit score you can get better interest rates, better opportunities and less stress. Discover has excellent options for credit card beginners.
A Quick Warning: Avoid maxing out these cards because that can actually be very counterproductive and lower your credit score.
Get rid of the money under the mattress and sitting in the bank. It’s losing value my dear hopeful entrepreneur. Inflation is eating at your savings and leaving you with nothing. Get a high interest savings account or invest in the market. Financial advisors cannot outperform the market. Even your rainy day fund should be working hard to bring you back profit.
I recommend putting a rainy day fund in something FDIC insured, such as a high interest savings account because your risk is relatively non existent and you’re still building interest on your money.
Wrapping it Up
It doesn’t always take money to make money, but it always takes time. Learn a new skill, get familiar with index funds, read investing books, follow a market watch news paper. Build several streams of income for yourself. If you are only relying on a paycheck you’re asking for trouble. Even if you make 10 cents a week starting out as a business owner, you’re 10 cents richer. Invest in marketing, promote yourself and build your brand. Keep your job until eventually you do not need it. Jobs are to supplement your bills while you invest. Make your money work for you, cut the useless expenses, and track your spending. Make these changes and you will notice a difference in your bank account. Your mind is your most powerful weapon and it is what makes you an individual. Brain storm ways to make money with no money, no matter how outrageous, practice getting ideas out. Build your business, invest, pay yourself first, rinse and repeat.
If you like what you read, please share this article. I’m sending you so many virtual thanks in advance—to making life better.