How To Build Wealth With No Money From Start, Let’s break away from some of the common, cookie cutting information out there telling you how to build your wealth with no money…here’s my advice, enjoy it!
VERY careful who you listen to and who you take advice from.
There are a lot of people out there who are totally broke, who have no clue what they’re talking about, but who LOVE to give financial advice at any chance they get. Listen to people who are where you want to be. THOSE are the people who have done what you want to do, and chances are, THAT is the advice you should follow.
Second: You GOTTA make money. I
If your goal is to build wealth FAST, you aren’t going to get there by making money with a traditional job, unless that job is going to pay you some exorbitant amount right off the bat. Pick a career or a business that ISN’T dependent on how many hours you work.
Third: Don’t be afraid to invest in yourself.
It doesn’t NEED to cost you money, you can invest in yourself for free if you want to. There are SO MANY videos on YouTube for you to learn from, and you can pretty much learn whatever you want to by just googling how to do something. But I also recommend investing in yourself in the sense that you’ll actually go and USE these things that you learn, and by practicing them firsthand, you’ll eventually get good at them.
Fourth: Minimize your tax bill
-Minimize your taxes with a 401k Contribution
-Re-Invest back into your business so you show the IRS less NET income that you’re taxed on
-Learn how the tax code works and HIRE THE BEST CPA YOU CAN.
-That CPA might set you up with an LLC taxed as an S-Corp, or a straight-up S-Corp that becomes the entity you run your business from.
-Consider buying items that you can depreciate, too.
Moral of the story: The more you make, the less of your money you keep…so you MUST learn how to keep your money, or at least HIRE someone who can do this for you. This is REQUIRED. LEARN TAXES.
Build Wealth With No Money
Fifth: Save Money
This is by far our biggest expense. Look into what’s called “House hacking.” This is where you buy a 2-4 unit property, you live in one of the units, and you rent out the others. This is what I do, and it means I can pretty much live here in Los Angeles ENTIRELY for free. If buying a property isn’t in the cards for you, just consider living with a roommate.
Second, your car is another big expense…
This is where it gets a little more nuanced depending on your situation, but if you’re running a business where people don’t see or care what car you drive…go for a 5-7-year-old car that’s already taken most of its depreciation, that’s reliable, and that’s good on gas. Learn how to car hack here:
Another great money-saving trick I use is to NOT buy anything without first sleeping on it, or waiting a few days.
Most of the time, those impulse purchases go away after one night…and you realize you didn’t really want it that badly to begin with.
Finally, AUTOMATE YOUR SAVINGS. Make sure to put a set amount aside every single month no matter what happens. The funny thing is that even though it might seem like a lot of money to go without all of a sudden, you usually just find a way to make it work, anyway, until you don’t even realize you’ve cut back your budget. Paying yourself is a MUST, so get in the habit of always doing this.
When it comes to this, I also recommend tracking your spending – this is fairly self-explanatory, I won’t go into too much detail on this, but use a site like Mint.com or Personal Capital that’ll track everything you spend, so you can see where you’re blowing money on random stuff.
AND FINALLY…JUST INVEST YOUR MONEY in something OTHER than your business, in something that you intend to keep a very long time that will constantly pay you. When it comes to me, I like index funds and real estate – that’s pretty much all I do.