Building Wealth From Nothing | 11 Tips To Save Like A Millionaire

by | Mar 12, 2021 | Personal Finance, Saving Money | 0 comments

Would you like to know how you can start building wealth right now? Check out these 11 awesome tips on how you can start building your wealth from nothing and change your life!

Have you heard or read about someone that is financially successful and thought, “How can I become more like them?”. You are in luck, my friend! At Self And Wealth, we aim to help you become more financially responsible and generate long-lasting wealth.

Building wealth starts with an idea, a change, or an action. It might involve all 3 of those at the same time! We’ve compiled our favorite ways to start building wealth from nothing. Some of these topics cover crushing debts, shifting your money mindset, earning extra income, investing, and more.

11 Ways To Begin Building Wealth

1. Shift Your Money Mindset

Are you wondering what we mean by money mindset?

Your money mindset is basically the way you view and think about money. It’s easy to get caught up in the “keeping up with the Jones” mentality. It’s super important that you part ways with that type of thinking.

You should begin to shift from a spender/consumer and become a saver/investor. Making small changes in your daily habits and tracking your finances will embark you to level up your money mindset.

2. Investing In Yourself

Your brain is your largest asset. I know that sounds like a joke, but take it seriously! The knowledge that you possess will massively help you achieve your financial goals. It is easy to look past this when you begin budgeting and tracking all of your expenses, but building your understanding of wealth, investing, and making good financial decisions is crucial.

This doesn’t mean that you need to spend thousands of dollars on a Guru. There are plenty of great books and courses that you can start with. If you pick up one tidbit that helps your future financial standing, the money will be well spent!

Here’s a few of our favorite books:

3. Create A Budget And Live By It

Do you know where all of your money is going?

Budgeting is absolutely necessary when building wealth from nothing. If you don’t have anything to start with, budgeting will show you the way. I’m willing to bet that you could save at least $100 a month just by creating a simple budget.

Stay consistent with your budget and review it weekly and monthly. Make adjustments to your budget as your income fluctuates.

Related Content: Budgeting For Beginners

4. Crush Your Debts

Do you have credit card debt? It’s time to put together a plan to pay it off!

Credit card debt can cost you tons of money every month. Begin by analyzing your balances and figuring out how much you can pay down per month. It might be easiest to use the snowball debt method by paying the minimum on all but one credit card. You can then take all of your extra money and focus on paying off one card at a time. Repeat this process and use all of the money from paying the previous cards to attack the others.

Revert back to shifting your money mindset when it comes to credit cards. Do not use them for anything that you cannot pay off at the end of every month.

Considering using 0% interest to transfer existing credit card balances to escape paying some of that high interest. Make sure to have a plan to pay it off before the introductory rate expires.

Analyze all of your remaining debts and see if it makes sense to tackle others while building up your savings.

5. Build A Cushion/Emergency Fund

Can you withstand a $500 or $1000 surprise expense?

It’s shocking how many people have little to no savings. This is a recipe to rack up credit card debt. Don’t do it!

After you’ve knocked out your credit card debt, continue with the snowball method. But instead of paying down credit cards, you will be paying yourself and building up that emergency fund.

Some people advise on having 3 – 6 months’ in living costs saved. I think you should have at least 2 months. Everyone’s situation is different and you will be the best judge of what sort of financial buffer you will need.

6. Begin Saving Income

It’s now time to start putting away more of your income after crushing your credit card debt and building up that emergency fund. The money that you are saving now is going to help set you up for a better financial future. These savings will be set aside for investments.

Start by using your budget to see how much extra you have after all of your bills are paid. This should give you an idea of an amount/percentage that you should be shooting to save. Every little bit saved counts! Try starting with 5% – 10% and build from there.

If you have the option of a 401k, you should consider starting to put money there or upping your contribution amount.

7. Get Rid Of Costly Liabilities

When budgeting, you will quickly discover where a majority of your money ends up. I’m willing to bet that your rent/mortgage and transportation costs consume a large amount of your income.

If you have excessive housing costs or car payments then you might want to consider downgrading. Push your ego and desires aside and think with a financially savvy mind. Ask yourself,  “what do I really need to be happy?”.

Any toys or liabilities that are rarely used or have monthly payments should be questioned. You want to shed materialistic items and begin purchasing investments/assets that help you to begin building wealth.

8. Start Buying Assets – Begin Building Wealth

Did you know most millionaires have at least 7 different assets/income streams?

Budgeting, crushing debt, building savings are the beginnings of building wealth. By now you should have a strong money mindset and vision for where you would like to compound your wealth.

Throughout this process, you should be reverting back to step 2 and continue investing in yourself. Identify types of investments that you would like to use to grow your money. You might want to reach out to a CPA, financial planner, or financial coach to help you out.

Here’s a list of a few examples of investments.

  • Real Estate – Building up a rental portfolio or flipping can be great wealth builders. We are using real estate to help us reach financial freedom!
  • Stocks – Contribute to a 401k, pick individual stocks, or invest in ETFs (exchange-traded funds).
  • Businesses – Create your own or invest in a new/existing business.
  • Cryptocurrency – These can be very volatile and risky. Be sure to do plenty of research before jumping in!

No matter what you invest in, make sure to do your due diligence to fully understand your investments. At the end of the day, it’s your money that is getting put on the line.

Building Wealth Bonus Tips

We have a few more ways that you can further increase your wealth-building ways. You can combo some of these tips with the others to create wealth faster!

9. Side Hustle To Earn Extra Income

Are you a go-getter that is always looking for opportunities to add to your wealth? Consider starting a side hustle to boost your income.

Think about your hobbies and passions. Brainstorm to find out if there is a way to turn those into a side hustle. You are far more likely to be successful and stick with a side hustle that you enjoy.

Since you’ve already got all of your bills paid, take all of your side hustle earnings and put them towards your assets/investments. If you are really lucky, you might be able to turn your side hustle into a full-time gig.

10. Get Creative With Your Housing To Expand Building Wealth

Do you have extra space or rooms in your house or apartment? Consider renting out any extra space to help cut into your mortgage or rent. This is known as house hacking. You can rent by the room or even rent out unused storage space.

House hacking experts can potentially completely offset their housing costs. How would you like to pay $0 towards a mortgage or rent?

Consider becoming a roommate to split up housing costs. Take the savings from that and use it to tackle debts or increase savings/investments.

Related Content: How To Save Money Each Month | 21 Game-Changing Tips

11. Change Job/Ask For A Raise

Do you know that you are underpaid? Why not ask for a raise?

Even if you are told no, you still haven’t lost anything. Make sure to paint a good picture of why you should get a raise. Don’t ask without having proof that you deserve the raise!

If a raise isn’t available, considering switching companies or jobs. Know your worth and find a job/career that compensates you accordingly.

Wrapping Up Our Tips On Building Wealth

Thanks for taking the time to read our wealth-building tips! We hope that you are able to take all or some of these tips and apply them to your life. Remember, it all starts with shifting your money mindset and taking action!

What is your favorite way to build wealth?