It is great to know what you have to do in order to be successful, but if you do not APPLY the necessary steps and methods, you will fail to see the results you want.
When I first started investing, it took me a whole year to save up the initial $5,000 I wanted to start investing. Now, you don’t have to be like me and wait to have $5,000.
I would say the minimum amount you would want to save up, in order to start investing would be $1,000. The more you invest the better your returns, so technically you can invest with even just a $1, but it will probably take you more than a couple lifetimes to see the results you want.
If you were like me back in 2017, and had no idea where to even start or how to start saving, I’ve created a list of 7 ways to save and build up your money so that maybe one day you can be in the best position to start investing.
So, here are the 7 ways to start building wealth today:
1. Start putting a certain percent of money aside with each paycheck, into a high-interest or cash-back savings account.
I’m honestly not even going to give you a percentage because the more serious you are about your money, the more you will save. Never mind - aim for at least 10% to start and then increasingly add 1%, wherever you can.
2. Build an Emergency Fund.
This is usually recommended to be 3–6 month’s of your income or more. I find that if you have children or work in risky environments, you should be on your way to saving up to a year’s worth of expenses or income.
3. Change your beliefs about money.
Do you think money is evil? Do you think that the rich are bad people? Do you think that money isn’t meant for you?
You are undeserving of being financially well-off?
No matter what you have been socially conditioned or the stories you have heard based on your upbringing, if you do not believe that money is on your side and wants to grow and build with you, you simply won’t go far.
4. Budget. Budget. Budget.
You can get a free personalized budget sheet on my website, here. This is important in seeing your cash flow - the money coming in and out of your bank accounts - and learn what you have to cut back on or how much more you have to save.
There are also great apps you can check out here, if you are not the stashing money in separate envelopes, or the excel sheet type.
There is this beautiful concept called compound interest. This is pretty much where the term “make money in your sleep”, probably comes from.
You want your money working for you, not you working for your money. How awesome would it be, if the interest on your principal savings amount is also making money?
You can put money in various different investment account types, such as:
Guaranteed Investment Certificates (GIC’s), Government Bonds, Mutual Funds, Electronic Transfer Funds (ETF’s) and Equities (Stocks).
6. Find a money coach or a financial advisor.
A money coach is key to getting the foundation of your wealth habits and behaviors down pat.
They will walk you through, how to budget, create a debt repayment plan, money saving strategies and to build lasting wealth.
A financial advisor helps to advise you on where to invest your money over time and manages these accounts for you, so that you can make money while you sleep. Compound interest, remember?
7. Have fun!
Just because you are saving for your future, that does not mean that you have to stop having fun or enjoying the things you love to do.
One, there are plenty of ways to have a great time for FREE, you just have to get creative and do some quick research on Google for fun things to do in your local area.
Two, if you budget and automatically save a certain amount of money every month, you can use the extra money to do whatever the hell you want, without feeling guilty about not having saved.
Mastering the art of saving will take you far within the realms of personal finance and investing.
Once you are able to build up wealth, you will then see how much your life will transform into the one you’ve always envisioned.
It just takes desire and determination to really see you reach the level of financial stability and success we all dream of.