How to Build Wealth From $0 in 2022
***Disclaimer – I’m not a financial advisor, just a normal guy with financial success. The information shared here is purely for educational purposes only***
Is it possible to from $0 to $1,000,000 or more in assets if you start out with nothing? Yes! It’s absolutely possible and many have done it, and many more will do it in the future. So why can’t that person be you? It can be with some solid planning, determination, and good work ethic, you can absolutely go from having no assets to have net worth well above $1 million dollars.
Part 1 Develop a mentality of being a saver
***Disclaimer – I’m not a financial advisor, just a normal guy with financial success. The information shared here is purely for educational purposes only***
If you are starting out with $0, it won’t just magically grow on its own, $0 times whatever return will always be $0 so you will need to invest your money in order to grow. You won’t be able to save or invest in anything if you spend it all. So if you want to have a good life later on, cultivate a mentality and lifestyle of being a saver.
Some people choose to live well and spend their hard earned money to live in comfort now and not being able to invest for their future. So you can either mortgage your future and enjoy instant gratification or wait for your investment to grow and enjoy the fruit of that hard labor later on. Personally, I recommend the latter option because you will get to enjoy it more when the investment grows to a certain mass.
Part 2 Set a Goal
What is your end goal? How much do you want to have and why? Is it for retirement or just month to month expenses? Do you want to save up a huge amount just so you can buy something big like a house, a nice car, a yacht?
So it’s important to know what you are saving up for and what it’s going to be used for. It’s always a great idea to have at minimum, three to six months of living expenses saved for emergency and unforeseen events. Having savings of six months to twelve months of expenses saved is a much safer bet in reality though, and some people like me prefer to have more than one year of living expenses saved up for emergency.
Once you have determined how much and why you want to save up for, it’s time to move on to the next stage, the roadmap to accomplishing your goal.
Part 3 Roadmap
Roadmap is just a fancy way of saying, how are you going to get to your goal. To reach a goal, often time you have to go through multiple stages and landmarks to achieve them. For example, your goal might be go from $0 to $500,000 in net worth in 20 years and how are you going to achieve that? You’ll want to have a ballpark idea on how much you’ll have to put in each month in order to achieve your goal.
On average you’ll need to save just under $900 a month for 20 years at 8% annual return to reach $500,000 in your balance. Step one might be to save $500 a month in the first year and put them in your savings account. Year two might be to sock away $600 a month into an investment account and allow it to grow. Year three might be to save $700 a month, year four $800 a month and so on and so forth.
Instead of simply put money into your investment account, you might want to save some money to invest in real estate properties. If that is the case, you’ll have to plan how much to set aside each month in order to save up a down payment to purchase a property. Sometimes you can find undervalued cheap properties in auction or simply on real estate websites.
Part 4 Execution
Here comes the real deal. Once you have starts to laying out your plans, it’s now time to go and make it happen. Money won’t just show up at your doorstep for you to invest, so you still have to keep working hard at your day job. You may even have to pick up an additional part time job, side gig, side hustle, or start a secondary business if that is part of your roadmap to achieve success.
You can also try to do a great job at your day job and shoot for promotion. Working hard at one primary job and getting promotion or switch job might just be as good as getting a secondary income from a side hustle.
Shoot for excellence in whatever it is that you are doing. Whether that is doing a great job at your full time job, in your relationships, in your hobbies; and often time you’ll see that money tends to follow you when you are looking to achieve excellence.
Part 5 Be Persistent and Stick to the Plan
Often time people fail because they give up too quickly. If you have planned well and worked hard at achieving your goals, even If you don’t “quite” reach your goal, chances are, you’re going to be so much better off than if you didn’t plan and try in the first place.
Having a lofty goal will most likely mean you will have some speed bumps or setbacks on the path to achieving your goals. It’s important to remember why you are doing it and stick with the plan. Be persistent and stubborn in achieving financial success.
In Conclusion
Any can become a millionaire in net worth, especially if you live in one of the western nations like the United States. It comes down to if you are willing to work for it and if you are working smart to achieve it. There is a path, find your path, and stick to it.
***Please feel free to reach out to us at contactus@savingformore.com if you want some free advice on your finance***
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***Disclaimer – I’m not a…