Are you looking for practical tips to help you build wealth? If doubling your net worth is something you’d like to do, this article was written just for you!
Below I’ve listed my top 10 tips that will help you not only save more money, but make more money too! Combining both saving and making money is the key to doubling your net worth as fast as possible.
Without further ado, here’s the list below!
1. Start a side hustle
The absolute biggest things you can do to double your net worth is to start a side hustle. A side hustle is anything you do (on the side) to make extra money, whether that’s freelance, play games for real money, sell homemade crafts/goods, or something else – there are so many options out there. While you can side hustle part time indefinitely, I feel it’s a very worthwhile goal to turn your side hustle into a full time business. It will replace your day job income and have the potential to make you hundreds of thousands of dollars every year.
It seems everyone is doing something on the side today! That’s not an accident! There are so many opportunities to make extra money. It truly is the best time to be alive. While working your day job can be incredibly rewarding and pay your bills, having your own business you run and call the shots is an incredible asset to have. If you’re new to the world of side hustling and working on a business, the first step should be to get ideas on what type of good business ideas are available for someone like you. Here’s a great article on side business ideas you can read to get started.
2. Make saving money a priority
After side hustling, saving money is arguably the next most important thing you should focus your time on. You’re probably thinking that saving money is important because it builds up your bank account and helps you retire early. While this is entirely true, and a big reason why you should save money, it’s not the main reason why – at least not in my mind!
Saving money is crucial because the money you save can be put towards your side hustle/business. You see, to grow a business that makes you hundreds of thousands of dollars per year, you’ll need to invest money into it. Whether it be hiring extra help, paying for advertising, or building a product from scratch – all of this requires capital to start. By saving money, you’ll be able to grow your business quicker and generate larger amounts of profits faster too.
3. Create multiple streams of income
If you talk to most people who are “rich” in today’s world, they’ll usually tell you they have many income streams. They have investments, businesses, and other things that bring the recurring income. I get super excited about different ways to make money and I highly recommend you think about creating 3-4 different avenues of income streams.
You don’t need to pursue all of them right now. However keep it in the back of your mind! Besides having several ways to earn income, multiple streams of income also means you’re diversified in the way you make money. Should one or two income streams fail, you’ll have a few others to fall back on.
4. Learn how to create a budget
A lot of things can fall apart in your life when you don’t have a budget. It’s like trying to lose weight without a diet plan. It pretty much never works! A budget is simply a plan that outlines how you’ll spend your money.
Budgets are actually super easy to create. There are phone apps and software that can help you with this, and I recommend them if you want technology to keep your finances together. However I find using a pen and paper super easy and straight forward for budgeting. All I do is write down how much money I make each month and all the expenses I have for the month. I then allocate a certain dollar amount to each expense and adjust as needed based on how much money I want to save. That’s really it! I then make sure I follow my budget (which is the hardest part of it all).
5. Adopt a frugal lifestyle
If you’re new to the term frugal, here’s what it means! Frugal means putting your dollars towards the things you truly need in life, and therefore means not spending money on other needless things.
In other words, you can buy whatever you want in life, as long as it’s something that brings a lot of value to you. For example, I enjoy photography and I spend a lot of money on expensive camera related gear. But I won’t buy a $50 sweater even if it’s my favourite brand and on sale – because I have enough sweaters already.
Being frugal is sometimes confused with being cheap or stingy. That’s not really the case. Look at it as being very “economical” about how you spend money. I highly recommend this lifestyle because it prevents you from spending too much money on things that don’t bring value to your life. For example, if eating a $20 spaghetti meal at a restaurant gives you about the same satisfaction as eating a $50 steak, the spaghetti is absolutely the right frugal choice!
6. Adopt a minimalist lifestyle
If you’re up for a big lifestyle change, try going fully minimal or incorporating some minimalism in your life. What is minimalism? It’s when you simplify your life by owning as few things as possible. You will only buy things you absolutely need in life. Everything else is “extra” and not needed.
Minimalism is very powerful because it helps you save a lot of money. It’s also a huge lifestyle shift because it means you’ll own maybe two pairs of shoes, just enough variety in clothing, and your home won’t have tons of stuff everywhere. Minimalism is the opposite of consumer culture where we are persuaded to buy new things and to keep up appearances!
You may not want to go fully minimal, however adopting some of it will help keep your life more straight forward as well as help you save a lot of money in the process.
7. Focus on paying off all your debts
A lot of people want to get ahead in life but aren’t sure where to start financially. Should they pay off debts, start investing their money, focus on their business, etc. In my opinion, the first and most important thing you should do right away is to pay off your debts. Here’s why:
Your debt is this thing that holds you down and keeps pulling you away from moving forward in life. Those interest payments are likely very high and outweigh anything you can reasonably make with investments. It’s mentally and financially smarter to start at ground zero (zero debt) rather than try and build up (like starting a business) while having all this debt continually weigh you down in interest payments.
There are some circumstances where it makes sense to pursue other things like starting a business over paying off debt. If a great opportunity comes along that can make you a lot of money (whether it be an investment opportunity or business opportunity, etc), you may benefit more from pursuing that.
Otherwise, take the time to pay off your debts as fast as humanly possible. You may want to eat a “beans and rice” lifestyle until you can dig yourself out of debt. There are some instances where you may not want or need to pay off your debt quickly. If your interested payments are zero or close to it, it’s not necessary to pay it off quickly. Also, certain debt like a mortgage and maybe a business loan don’t need to be paid off as fast as possible because these types of loans are typically looked at as long term loans that you’re expected to pay off over decades. However, if you want to get ambitious with paying them off fast then go for it!
8. Invest in stocks
Stock are an incredible way to make money (long term). There are many ways to invest in stocks. I recommend investing in stocks as a way to make money for long term goals (for example, buying a home, saving for education for your kids, retirement, etc.)
A lot of people don’t understand stocks and think of them as super risky because they hear about people losing it all overnight. While that has happened to people, they’re awful investors because that should never happen. You should ONLY invest money you’re willing to lose. Perhaps 10% of your monthly income for example. And more importantly, you want to invest in stocks that fit your risk tolerance. For example, if you are risk averse (you hate losing money), you want to invest in stocks that show a history of being stable and growth.
Stocks isn’t something you learn overnight. However it’s something you should learn over a period of a few years and continually learn about as you go through life. Investing is something you need to take control of in order to retire super rich. Stocks can be your primary way of earning investment income. It’s actually not a lot of work when you know what you’re doing. Spend some time every day to learn a little bit about investing and you’ll be well on your way to managing your own wealth.
9. Invest in appreciable assets
Stocks are the most popular way people “save money” for retirement and other life events, however they certainly aren’t the only way to make a great return on your investment. Many other types of investments can be super valuable to get into. I highly recommend owning several types of assets so you can diversify your investment income.
A few other popular investments you can dive into are real estate, collectibles, antiques, artwork, businesses, or anything that can increase in value over time or provides you with recurring income.
As a side note, investing in your own side hustle/business is a form of appreciable asset that can pay you back big time over time!
10. Invest in yourself
My final tip for you isn’t a “personal finance” tip per se, however I’d say it’s the most important “tip” in life. The best thing you could ever do for yourself is to invest in you. It’s nearly impossible to build a business or save money for retirement when you aren’t someone who is disciplined, goal oriented, and can stay consistent – among other things. You’re not born with these desirable attributes. However you can certainly attain them by practicing them daily.
I recommend taking a few days to really hone in on what skills you’d like to improve on this year and create a plan of action for it! For example, spending 20 minutes per day learning about how stocks work is a very manageable task that will help you get smarter with investing while building your consistency muscles at the same time!
I hope you’ve found these money tips helpful! Good luck the rest of the way!
About The Author
This post was written by Jason, author of minthabits.com.
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