It may be hard to think it is possible to build wealth from $0 given the current economy. From inflation to massive job loss to the housing market uncertainty. You may wonder if it is even possible to get ahead and build wealth. Well in this post I’m going to talk about some very practical things that she can do TODAY even if you’re starting at zero.
1. Quit Your Job
Yep, I said it! Now, this may sound like absolutely ludicrous news, especially with the massive job cuts that are happening particularly in the tech industry. However, research has shown that if you stay at your job for more than two years, you make 50 percent less than those who leave after two years. The reason is that your job increase or promotion does not necessarily keep up with inflation. Versus when you go out in the job market looking for a new position with the intention of a higher income, you have a greater chance of increasing your salary at a much larger rate.
2. Practice the 72-hour Rule
Oftentimes if you are making purchases it is due to impulse. You may think that you need it and it’s a necessity right now but try and wait 72 hours to see if that urge is still there. This is so important to try to do because you want to make sure that you’re maximizing your dollars to their fullest potential and you’re not just buying things because it gives a dopamine hit at the moment. Try the 72-hour rule let and let it sit in that online cart. The price tends to go down the longer you let it sit and you can use that money in a more resourceful way.
3. Create a Budget
A budget is so beneficial to your finances because it helps you understand where the money is coming in from and where it’s going. A budget creates a very visible picture of what your finances are doing today. Without a budget, I honestly do not know how you will ever actually get the best of your finances. If you are not budgeting it is going to continue to feel like a treadmill going around and around. If you need budgeting I do have a free budget template that you can download with step-by-step video instructions.
4. Automation
Automation will be your best friend once you master your budget. There are things that you can put on automation as far as your bills, savings, and investment. It takes out the guesswork and the mental power for you to have to do these things manually each month. With automation, you can set it and forget it.
5. Invest in Yourself
Investing in yourself means you are committed to being a lifelong learner. What can you do in your industry to heighten your skills? Or maybe you can learn a new skill. Some of my favorite places to kind of gain knowledge are figuring out what certifications can I get quickly in my industry, listening to podcasts, reading blog articles, and my favorite YouTube University!
6. Invest in the Stock Market
Do your research on what are some low-risk index funds and look into different retirement accounts like a Roth IRA. I highly encourage obtaining an additional retirement account outside of your job. Research low-risk index funds and set that on automation and you will begin to build your wealth one dollar at a time. Read this post with step-by-step instructions on how to start investing!
7. Pay Down Debt
If you have debt there’s an interest rate associated with it. As that interest rate is growing on that debt it is increasing the liability that you owe. Understand that the interest or compound interest on your debt is working against you and not for you. The more you pay it down you reduce your liabilities and increase your net worth.
8. Make Extra Money
Now there is a lot of information on different side hustles and things that you can do for extra cash. However, I want you to know the difference between a side hustle vs a side business. A side hustle is an activity or task that you do and immediately or very shortly after you are compensated for completing that task. Versus a side business is something that you actually have to invest time and resources in before you see a return. Think of side hustles like Amazon Flex, Uber Eats, Instacart, Upwork, etc.
9. Live Frugally
Now, this is something that your budget will help you do. Look for ways where you can cut down on your expenses and make sure that you are not living above your means. Doing this will allow you to reallocate that money and put it toward your investments, savings, and education.
10. Self-Worth ≠ Net-Worth
Know that you’re self-worth does not equal your net worth. You are worthy regardless of how much money you have in your account or how much debt you accumulated. It does not equate to who you are as a person. Do not allow the numbers in your bank account to determine who or how valuable you are. I want you to know regardless of where you’re starting or even where you’re going you were worthy since the day you were born and don’t you ever forget that.
Until next time dream, believe and achieve.
