More than 700 million people or 10 per cent of the global population — still live in extreme poverty, which means they are surviving on less than $1.90 a day according to UN Global Impact. They lack access to water, food, better education, and other basic needs. This article will teach you how you can get rich at any age without starting the next disruptive company like apple, amazon, Tesla, or Bitcoin to break away from a generation curse of pervert.
I understand the harmfulness that poverty brings to people because I was born in a low-income family too. My family was not extremely poor when I was growing up, but we were not rich either. I spent my entire childhood in the Kiziba refugee camp from 1996 to 2008, when my family was lucky enough to move to the United States of America through the refugee resettlement program. When we arrived in the United States, I went to South high school In Denver and later went to Metropolitan State university. When I was in college/university, my main goal was not to work for anyone for the rest of my life.
I believed that I could make more money working for myself than trading time for money.
However, the tricky part was to create enough income from the job I was working at that time. In mid-2018, I dipped my toes into investing in stock market. It was challenging and confusing at first, but I did not give up on it since I had a goal that I was shooting for. In 2020, Covid-19 happened, and the stock market collapsed. Still, it did not affect me since I was able to move my money into tech companies like Apple, Tesla, Snapchat, and more. As a result, I made more money than before since I bought stocks at the discount.
On February 21st, 2021, I quit my job. I was making enough to live off in the stock market. After quitting, I started my own business because I could afford to live off the stock market while growing my business and now, I am making more money than when I was an employee. If a kid who grow up in the refugee camp can become financially stable in the United States at the age of 28, you can too. Here is a list of things you have to do to become financially stable. That way you can live the life on your own terms.
1. Define what rich means to you
Believe it or not, people have a different definition of what being rich could mean. For instance, some people define rich as being financially free. Others define rich as being a millionaire or having more money than they need.
Once you find out what rich means to you, it would be a lot easier to get to where you want to be. For example, let’s say having a million dollars in your portfolio is what you call rich. You can invest 5 dollars a day in the stock market ETFs that pay 10% in annual dividends plus capital gains, and become a millionaire in 20 years, if that is your goal. You can become a millionaire in less than ten years, but that means you have to invest more time and money than usual. Investing in Stock market is boring but effective. you can stock investing using investing platforms life Webull, Robinhood, Fidelity, TD Ameritrade and Acorns if you want to invest as little as spare change. What I life about Acorns is that you can open an account for your children and yours under the same account. Click here to learn more about Acorns.
2. Change your mind-set about money.
Many people see money as an object instead of seeing it as a tool to make their life easy. This ideology makes people put their small savings in investment vehicles that generate low interest. For example, if you invest all your money in the bank savings account and another person invests in the stock market, who will be rich faster?
The person who invested in the stock market will beat the inflation by a lot since the S&P 500 pays investors at least 8% in stock dividends. Those who keep money in the bank savings account will be losing money since the inflation is around 3% every year. A person who invests in a savings account will lose about 3% of the money's value every year since the bank pays between .01% and 1.75% in interest.
All I want to say is that you should invest your money in bonds, CDs, the stock market, or other investments that would beat the inflation rate. Your wealth will grow a lot faster if you change and understand how to make your money work for you.
3. Get a good-paying job.
Honestly, I am not a big fan of trading time for money. I believe that money should work for me, not the other way around. However, you have to start somewhere unless you win a lottery or have a rich uncle or untie who can give you a loan to invest in your idea. Jokes aside, we all have to start somewhere. You have to work and manage your earned income wisely. If managing money is hard for you, then consider seeking professional help.
4. Learn how to manage your money
Managing money is not as complicated as you think. Sadly, they don't teach these it at school. You can learn to manage personal finance by watching YouTube videos or reading financial blogs and books. You do not need a financial advisor to help you manage your money, especially since they do not come cheap. You can manage your money by writing down your expenses and put the leftover cash in the high-interest savings or stock market.
5. Set up an emergency fund
A lot of people around the world do not have emergency savings. When covid-19 shut down everything in 2020, many people panicked because they did not know what to do and had no personal emergency fund to back them. However, those who had stashed around for a rainy day lived a comfortable life while others were crying for help.
It is wise to always have emergency money saved in safe accounts like bonds, bank CDs, and bank accounts because you never know what tomorrow might bring. Save something small like $5-$100 on every paycheck adds up fast.
6. Live a Frugal Life
Every first generation of wealthy people has lived frugal life. Noone can get ahead unless they sacrifice something in their lives first. It could be something like, not going on that beautiful trip to Africa or Europe, stop buying unnecessary things like expensive mortgages and expensive cars, and more.
People live a frugal life so they can live the life of their dreams tomorrow. It's not easy to be financially free unless you sacrifice a lot of your time and live frugally for a certain amount of time. If You don't plan your life ahead of time, you will end up broke for the rest of your life. However, I assume that you don’t want to die broke since you are here on this page. Try to spend your money on the necessities to have some leftovers to create a second income stream.
7. Create multiple income Streams
I haven’t met anyone who became wealthy from living paycheck to paycheck Unless they are a CEO of a major company. However, The CEO of these significant companies has stock options and other streams of incomes that help them generate more money while working from their jobs.
You can start with something small like a side hustle, invest in bonds, CDs, the stock market, invest in cryptocurrencies, buy a house and rent it, and more. There are many ways to make money without doing any actual work other than putting the money in the investments and watching it grow. The main point is that you need to increase your income. You can never get ahead living off one income stream. Try to create as many passive incomes as you can, and you will finally become financially free in a short time. Rember, the more you work, the luckier you become.
8. Create a passive income
Have you ever heard the saying rich people make money while sleeping? Well, that is a passive income. A passive income is simply the money you earn while doing nothing other than the upfront work. All rich people have passive income either from investments or their businesses.
For example, if you buy a house and rent it to someone, that money the renter pays you every month is a passive income. All you had to do was buy a house and collect rent money every month for as long as you own that house.
Another example of passive income is to invest your money in dividend-paying stocks or ETFs. These companies will keep paying you some percentages for as long as your money stay invested in them. The best thing about dividend income is that it can get to where your dividend income is more than your initial investment if you live it in for a while. Many people live off dividends, and you can, too.
Inconclusion
You can't say that you want to get rich and expect it to happen without making a few changes in your life. If you pay off your debts, save some emergency funds, track your spending, create extra income, invest, and you will get rich in no time. There are many ways of getting rich, so make sure you do your due diligence before investing in any type of investments.
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