Many people don’t know what they need in order to take the next step.
“All my life I knew there was all the money you could want out there. All you have to do is go after it.
I have always considered myself a disciplined person with clear financial goals. As far back as I can remember, I had saved money for something I wanted to buy (toys when I was a kid, phones when I was a teenager, etc.), and I always had savings emergency.
My first investment was when I was 18, a certificate of deposit in the bank where I worked, and I always used at least 30% of my salary to grow my wealth.
However, it wasn’t until I was 21 that I started accumulating real wealth and my net worth started to increase significantly.
But what has changed?
Even if I had the right mindset from the start, a financial goal alone won’t get you far. There are certain things I should have to be rich besides a correct mindset and good money habits, and in this article, I’m going to show you what those things are and why.
Like I said before, I’ve never had a problem saving money. However, I didn’t know many investment options.
When I started investing I worked in a bank so I put all my money in a certificate of deposit which gave me a 5% APY since I trusted where I was working but I did nothing else to make this money grow.
While an investment can help you fight inflation, the right investment can help you fight stability.
When I turned 22, I started exploring other investment options, learning about the stock market, cryptocurrencies, and business. In addition, I realized that I had the possibility of buying a house.
A safe asset can give you up to 8% return, but a correct asset can give you 100% to endless possibilities if you do it right.
What I did was start diversifying my bank savings. Instead of having everything secured at 5%, I left only the emergency savings there and started moving the amount I was comfortable with to the various options I was investigating.
Depending on your needs and ability to take risks, you may have different definitions of “own assets”, in my case these are:
- A stock portfolio of companies I trust.
- Index funds and bonds
- actual state
- Lateral jostling and
If you investigate the investments of millionaires, you will realize that they all have at least 3 of the things on this list. Therefore, if you ever want to get rich, you should consider researching these options, not just having a savings plan.
In 2020, I had five sources of income. Three of them asked me to be present and work there daily.
I realized that even though I was making a lot of money at the time, it wouldn’t last long. I had to get up at 5 a.m., and even at 8 p.m. I was in front of the computer finishing a project.
This is where I realized that I could delegate my tasks to be more free (and even work on more things).
I hired someone to work on my freelance projects and started automating repetitive tasks, and in 2021 I had enough time for another job that increased my monthly income by 100%.
All wealthy people use other people’s time to achieve their goals.
This gives them the ability to delegate things that, while important, don’t need their presence, like software building, marketing, or employee compensation, to focus on more important things that will empower them. to increase their profits, such as new business. ideas or their personal development.
Although I started working at 18, it wasn’t until I took my experience and value as an employee seriously that I started making money.
In my first two jobs I earned the minimum wage in my country without any change or incentive, and I didn’t do anything else to change it while I was there because I thought I would. deserved because I didn’t have the experience.
However, once I started the new job, I realized that I was not only underpaid but not properly evaluated. From there, I started working for a 20% annual salary increase and side hustles to match my goals and financial interests.
To put you in context about the potential you can have with a 20% raise, imagine you have the opportunity to save $1,000 a month right now; in one year, these savings would be $12,000 and in 10 years, $120,000.
But if you find a way to increase your income by 20% each year, you could grow your annual savings from $12,000 to $62,000 annually over the same period, and by the end of the 10th year, you could have over $300,000 in savings.
A job alone can make you a millionaire, but if you are already working in a profitable business or have a good 10-year investment strategy. But one (or more) side hustle can bring you closer to your goals sooner.
Before 2020, I had never thought of buying my mother a house in the near future. But when I started working and trying different activities and businesses alongside my full-time job, it became a project that became a reality in 2021.
This was possible because I tried many sub cheats and picked the ones that worked well based on what I wanted.
For me, good side work is one that I could do alongside my full-time job, that I could delegate to someone else if I wanted to use my time differently, giving me enough profit to cover my goals.
And finding one can be a life-changing opportunity if you know how to handle it properly and manage your profits to achieve your goals.
The right mindset can be what makes you fail or succeed over time.
When I started investing in the stock market and crypto, I didn’t have the right mindset, and it almost cost me everything I built until 2020 because I was focused on the short term.
When I learned the benefits of long-term investing and proper portfolio analysis, my life changed.
I’m not afraid of the slow period anymore because I have a plan, and I know what I’m investing in, and I think that will determine my success over time.
If I had followed my plan from the start, I would probably have twice as much money as I do now, but I let fear change my investment plans.
The ability to stay calm regardless of when your investments are will help you stick to your plan and realize better profits over time.