What’s your biggest dream?
We all dream of pursuing successful careers, raising happy families, and living long, healthy lives. But, if we’re being honest, there’s a greater dream: to be fabulously wealthy.
Admit it! Wouldn’t you like that have a billion dollars? With a lot of money comes financial freedom, and it’s this freedom that powers our other dreams. For instance, you might dream of giving your kids an Ivy League education, but without the funds, that dream will just remain that; a dream.
You can achieve all your financial dreams. You just need to know how to build wealth – from nothing.
Are you intrigued? Keep reading and we will fill you in with expert financial advice.
Set Wealth/Financial Goals
It’s fine to dream about being super-wealthy, but when it comes to putting in the hard work, you need more than a dream. You need specific goals.
What are your wealth goals? Or, how rich do you want to get?
Sure, we’d all want to be as rich as possible and own the finest things on the face of the planet, but that’s not realistic. There’s a reason only a handful of people ever get to become billionaires.
You don’t need a billion dollars to be wealthy. It would be nice to have such a stash of cash and assets, of course, but even being a millionaire isn’t a small feat.
As such, start your building wealth journey by setting proper wealth goals. These goals should be measurable and specific. Here’s a list of good financial goals:
- Double your net worth in 5 or 10 years
- Own a rental unit in 5 years’ time
- Clear your debt in 5 or 10 years
- Become a homeowner in 5 years
- Start a business this year.
With clear wealth goals, you’d have set the foundation of your journey to financial success. You’ll wake up every day with a clear roadmap of where you’re going.
Create a Frugal Household Budget
To build wealth from nothing, you need money to start investing. Where does this money come from?
If you’re lucky enough to have parents or grandparents who will give you a nice check to start with it, well and good. But if you’re anything like the average American adult, you’ll have to find a job and use your income to fund your household budget and other living expenses while making room for savings and investments.
Here’s the harsh reality, though. Over 80 percent of American workers were living paycheck to paycheck, and this was before the COVID-19 pandemic happened.
Most of these workers live on paychecks not really because they don’t earn enough. Yes, every worker’s life will be better with more pay, but most don’t budget their finances. If you don’t have a budget, you’re likely living beyond your means.
When creating a budget, think about frugality. The idea is to spend as little as possible on your living expenses (without over-compromising your quality of life). This will leave you with more disposable income, which you can then use to save and build an investment fund.
So, if you’re starting out in the workforce, learn how to make your salary work for you. Living a frugal lifestyle might not be appealing to you, but it’s a sacrifice worth making. In a couple of years when you have achieved financial freedom, you’ll look back and thank yourself.
Learn About Wealth Building
There are people who were born with the ability to build wealth. But for most people, wealth building is an acquired skill.
You need to learn how to make profitable investments; otherwise, you could lose your hard-earned money making bad investments.
You don’t have to go to college to study economics or finance to become good at investing or managing money. The costs of college are skyrocketing and you don’t want to accumulate more student debt.
There are online resources about wealth management. Find books and watch videos. Podcasts like WealthAbility are also ideal.
If you can find a mentor, do it. Learning from someone who has excelled at building wealth is more effective than learning on your own.
And, keep in mind that learning about wealth has no end. Don’t think that taking a short course or reading 10 books is enough. It’s a life-long process. There’s always something new to learn about wealth.
Start Investing Early
You’re never too young to start investing. You don’t even need to reach the legal adult age to make an investment.
If you need some inspiration, look at Warren Buffet. He purchased his first stock at 11! And this was back in the age where there weren’t any robust investment tools and technology.
When you start early, you give your investments enough time to grow. The stock market is a perfect investment destination for people who want to start investing early.
To illustrate, think of people who invested in Amazon during its IPO launch back in 1997. The share price was $18. Over 20 years later, the share price is a jaw-dropping $3,400!
If you were a young adult in 1997 and had $10,000 to invest, an investment in Amazon will have made you a multi-millionaire by now.
Along with starting early, embrace the fact that you don’t need a million dollars to start investing. Even with as little as 100 bucks, you can make an investment.
It’s Possible to Build Wealth from Nothing
Wealth isn’t just for people who were born with a silver spoon. There are billionaires who have built their empires from nothing. You can achieve the same feat, too. With proper financial planning and advice, you can build wealth from scratch.
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