Are you a professional who makes really good money yet you are always broke? I hear that a lot, and I judge not. Knowing how to manage your money is key, and chances are you never learned how to do it.
You didn’t learn how to manage money in school and chances are you never learned from your parents either. Money has been a taboo topic for so long. You probably don’t even talk about money openly with friends. It is a very private topic.
But you’re tired of this. You want to stop living paycheck to paycheck and start building your wealth. You’ve decided it’s time to get your finances in order. And you are in the right place!
Start by taking The Personal Finance Money Method Program. This 7-step money management course will teach you everything you need to know on how to get rich from nothing. You need to create your plan and set yourself up for money success. Register now!
It can feel overwhelming in the beginning to take the steps to change your life, but when the steps are broken down into actionable, manageable pieces, it’s a lot easier to learn and adopt a new lifestyle.
If you want to get rich from nothing you will need to change your behaviour and lifestyle. I will show you how.
How to get rich quick
Everyone wants a quick and easy way to get rich quick, however, it takes discipline, time and patience to build your wealth. You need to be educated on how to get rich and maintain your wealth. I hate to break it to you, but there isn’t a how-to get rich quick scheme here. I teach the foundation of getting rich and believe that everyone is capable of this.
I have seen it with my own eyes. When I was practicing tax accounting, I remember vividly when doing individual personal tax returns at how surprised I was by who was wealthy and who only looked wealthy.
It was always the ones who lived in modest houses and drove dependable cars that were the wealthiest. These are the people who knew that strong and steady wins the race and that you don’t get rich quickly. They know that how to get rich is a lifestyle that you need to adopt. Getting rich involves clipping coupons, saving money, and investing that money in assets that will appreciate over time and generate passive income.
Winning a lottery is a fantasy for many, as the odds are stacked against you. The odds of winning that jackpot are one in 302.5 million, according to Mega Millions.
The best way you can get rich quickly is to invest in yourself. Take the time to learn about finances and how to create your personal financial plan. Establish SMART goals which are specific, measurable, attainable, realistic and timely.
Knowing how to create a personal financial plan with passive income is ideal for getting rich quickly.
How to be rich
How to get rich quickly and how to be rich are two completely different beasts. Have you ever heard the story of the people who won the lottery only to lose it all in the end? Yes, there are several stories about losing it all.
The reason why people lose it all is they weren’t prepared to receive that wealth. There’s a misunderstood belief that when you are rich you have an endless supply of money. This is a falsehood. You can blow millions of dollars in no time and end up losing it all, and it’s scary to think of how easy that is.
Knowing how to be rich and staying rich is a mindset issue. Staying rich is the key to preserving your wealth. Rich people focus on investing their money in assets that will grow in value over time and pay a passive income while the asset grows in value. This is essentially how to stay rich.
Money management is a learned behaviour. It is very much like a diet and exercise program where you need to not only reach your goal but continue on a maintenance program.
You need to be making mindful decisions every day that will lead you to not only wealth building, but maintaining a level of wealth as well.
It’s not difficult to do, but you need to know what to do. Getting rich from nothing requires a strategic plan and knowledge. Practising to be wealthy is a tip I offer all my clients.
So when you want to start a plan on how to get rich from nothing, you need to follow certain steps and ensure that you have covered the financial areas of your life.
Follow these how to get rich from nothing steps:
1. Create a budget
The quickest way to get rich from nothing is to live under your means. That means that you spend less than you are earning and leave plenty of money to invest. Creating a budget will help you allocate your money each month to ensure you stop spending your money on things you don’t need and taking that money and start saving and investing.
2. Create a debt repayment plan
Nobody ever gets rich when carrying debt, especially expensive credit card debt and payday loans. Make getting out of debt a priority so that you can start saving money and get your money working for you.
3. Build your emergency fund
Having a buffer to carry you through the hard financial times is essential for controlling financial stress and keep you feeling good about your finances. Make sure you have enough money in your emergency fund that will carry you through 3-6 months of unemployment.
Insurance coverage
You are your biggest income-earning asset and you need to protect that. Having disability insurance, life insurance and critical illness insurance will keep you protected from financial disaster. Unfortunately, bad financial things happen to good people, so keep yourself insured against risks.
5. Values-based financial goals
Knowing which financial goals are important to you and aligned with what you want out of life will be very helpful in ensuring you are staying motivated to working and achieving your goals.
6. Learn how to save and invest
Taking the time to learn how to save for retirement and invest your money so that you can earn passive income is a key to wealth.
7. Live mortgage-free
Retiring not only mortgage-free but debt-free should be the goal. Mortgage rates are cheap now, but they are at risk to rise, so being mindful of how much of a mortgage you are willing to carry is important. Even if mortgage rates are cheap, you are paying interest charges to carry that mortgage, so be sure to include paying off the mortgage in your financial plan.
You can follow these steps and ensure you have a healthy financial foundation, but if you find that you want to grow your wealth there are many ways to do it.
How to get rich quick the real way
Once you have covered your basic personal financial plan and you feel good about the goals you have set and how you plan on achieving them, there are a few things you can consider to get rich quicker without getting caught up in the get rich quick schemes.
Living within your means
The most effective way to build wealth and preserve wealth is to ensure you are living within your means, which means that you are spending less money than what you are bringing in. Be mindful of what you spend money on and understand that the more money you spend on items that are not in your budget, the further you will be from your financial goals.
Having a financial plan in place helps guides you towards achieving your financial goals. A goal without a plan is just a wish, so getting that plan into action is vital.
Invest in yourself
Invest in your education, whether it be formal education or education of knowledge and experience. It’s no secret that the higher education level that you have, the higher you will be compensated for your work.
But also invest in the time it takes to learn financial skills that you know how to manage your money and build your wealth. The return on that investment of knowledge will be invaluable. It will allow you to save thousands year after year.
Make more money
When you realize that you want to make more money than what your full-time employment offers, you have other ways of making money. Some ideas include:
Sell some stuff
We’ve all been guilty of buying stuff we don’t need or having stuff sitting around unused. Why keep it? It’s just collecting dust. Sell your items and use that extra money to either pay off debt or start investing it.
Get a part-time job
A part-time job is a great way to earn additional income to go towards getting out of debt faster or saving money. If you have the extra time you can either find a job or work online.
Join the gig economy
Short term work or working when you need to is a great way to bring in supplemental income on your own terms. It’s a great way to earn extra cash without the long term commitment.
Start a new business or side hustle
Start a blog
Starting a blog that you can monetize is a great way to earn extra income. You need a strategy to get organic traffic and it takes time and a lot of work at first, but it has been known to pay off for many.
Sell a product or service
It’s never been easier to start a business from home, so if you have a special skill that you can capitalize on, go for it. It’s a great way to bring in extra money, especially if you enjoy doing it.
Create digital products
Digital products create some work up front, but once they are created they can be sold and you can earn an income on them.
Diversification in investments
When you diversify your investment portfolio you are reducing risk.
Examples of investments you can make that create passive income:
Stock portfolio
When you invest your money in stocks or other financial instruments, you have the opportunity of investing money in something that should grow in value over time, and offer you either dividend or interest payments in the duration.
The key is to be educated and understand what you are investing in and what your returns should be.
Rental income
Investing in real estate that you plan on renting out means that you are investing in the property that is expected to appreciate over time, and you are earning rental income from your tenants that will be renting out the place.
- Fractional investing
Fractional investing is relatively new to the market and it makes it much more practical and affordable to invest in markets such as stocks and real estate when you can’t afford to go all in. There are many new products that allow group investing and you still get the benefits of the investment but at a fraction.
Do as the rich do – create passive income
When you have created passive income and achieved that level where you can live off that income comfortably, you have reached what many might consider euphoria.
The don’ts of getting rich
We are covering a lot of tips on how to create wealth and manage it, but there are a few things you should stay away from that can easily kill your dreams of building wealth.
Stay away from get rich quick schemes
Anything that sounds too good to be true usually is. This is why education in personal finance and business finance will always pay off. The knowledge offers you a better understanding of how wealth is built and you will sniff out a scam a lot quicker when you are armed with financial knowledge.
Don’t put all your eggs in one basket
Do not invest all your savings into one sure thing, because quite often these things don’t pan out the way you want them to.
Don’t leave your money sitting in a bank account
A dollar today is worth more than a dollar tomorrow, so be sure that you protect your money against the cost of inflation. If you have money sitting in your bank account that is not collecting interest, ultimately your money will be losing value.
I had a client who had $1 million dollars sitting in her account for years because she didn’t know what to do with it.
Lending money to family and friends or investing in their business
Mixing business with friendship can take a toll on relationships if the deal goes south. As much as you want to help and support loved ones, be cautious of entering into deals where you get nothing in return.
Knowing how to stay rich
Rich people know that preserving wealth is key to staying rich. You need to learn how to build your investments so that you can live off passive income. The key to staying rich is to preserve the principal amounts that you have invested and diversify your portfolio.
Diversification is important so that when an industry gets hit hard or goes through a slump you aren’t depending on one income stream. It’s smart to be dabbling in various income streams so your wealth level won’t suffer.
When you have invested your money in assets that grow over time such as real estate or stock values, it is smart because
Remember that nothing is guaranteed
Investing your money doesn’t mean that you are ever investing in a sure thing. Stock values plunge, real estate markets crash, and such is life. You need to protect yourself from such events.
When investing your money don’t forget to consider short-term planning versus long-term planning.
Short-term planning is knowing how much money you will need in the next year or two. If you know you will need access to cash within the short term, it’s best to invest in bonds or GICs, or even put that money in a high interest-earning bank account, so that way you know your money is safe and will preserve its balance for when you need it. There is no risk attached to that money.
Long-term planning is knowing that the money you have invested will be there for the long term, so if there is a dip in the market, getting that money out is not urgent. You can ride the market downturn and cash in on an upswing.
Conclusion
There are many moving parts to get rich from nothing but it is completely achievable with the right plan and the right mindset.
Take control of your personal finances and grow your wealth.
Sign up for The Personal Finance Money Method Program that will help you gain financial confidence and create your personal financial plan to build your wealth.
