How to build wealth with no money — The 3 options a person without connections or financial help has to accumulate wealth. I am not a licensed investment advisor and this post is not financial advice.
Some people start off life with a silver spoon.
Life comes easy to them.
Their education is paid for. They are gifted a vehicle. Their parents help them get a job through connections. They are gifted a down payment for a house. In some cases, they receive large financial gifts.
On the other hand, people without those privileges must learn how to build wealth with no money. They have to learn how to start from nothing.
For the record, I am one of those people. I paid for my own education. When I used to have a vehicle, I bought it myself with cash that I personally saved from working. All of my jobs and work experience were obtained by submitting a resume and going through the interview process — not because my parents worked at the company. I have never received a down payment for a house, nor do I expect to. I have never received any large financial gifts.
Simply put, I have done everything on my own. I’m proud of that. I wouldn’t want it any other way.
Furthermore, I built my investment portfolio up on my own on a relatively modest income. Prior to this year, I’ve never made more than $60,000 annually.
The moral of the story is this — if I can do it, you can do it.
In this post, I aim to teach you how to build wealth with no money or help.
Let’s dive in.
How To Build Wealth With No Money
In a previous post, I focussed on the mindset needed and some of the steps you can take to build wealth without help from parents.
In this post, I want to focus more on the only options a person with no money truly has to get money.
To put it bluntly, unless you are some kind of special athlete or actor, you basically have three options:
- Be frugal and save prudently for decades
- Create something or start a business
- Focus on gaining career experience
How To Build Wealth With No Money — Your Only 3 Options
1. Be Frugal And Save Prudently For Decades
If you have no money from parents and you do not have a special talent, the truth is that you will have to be frugal and save prudently for decades. That’s all there is to it.
Like it or not, you’re going to have to work hard and save money for decades.
There is no other way to build wealth when you lack financial help.
If you aren’t frugal and if you don’t save money, you will never be rich.
It doesn’t matter if you are the best investor of all time — you need money to invest.
So stop being envious towards people who are spoon fed and save more money than them. Live more frugal than they do.
Ultimately, saving money is the most important part of becoming wealthy.
2. Focus On Gaining Career Experience
Some people get jobs through their parents’ connections.
But if you lack connections, you are going to have to build connections on your own.
Also, you’re going to have to drop your sense of entitlement.
Nobody cares about your education. Everyone has a diploma or degree nowadays.
Yes, there are certain jobs where education and the school you went to matters.
But for the most part, experience matters the most.
Therefore, the best course of action for a person without connections is to focus on gaining career experience.
Start at the bottom and keep building experience to the point where you can get the job you desire.
For instance, I wouldn’t have been able to obtain the job I have now without gaining ten years of relevant experience prior to it. I had to put in the work.
3. Create Something Or Start A Business
If the idea of working for a company and being frugal for the next twenty years makes you sick to your stomach, the only other option you have is to create something or start a business.
Of course, the risk is that you might not be savvy enough to run a business. If that’s the case, attempting to start a business could be a major setback. It could even prevent you from ever becoming wealthy.
So, it’s wise to proceed with caution if you are to go this route.
It’s probably best to create something as a side hustle and prove that it is a worthwhile endeavour before you quit your job.
But if you are skilled enough to create a product, service, or legitimate business, it could lead to extraordinary wealth.
How To Build Wealth With No Money — Final Thoughts
In summary, people without financial help and experience have three options to build wealth:
- Be frugal and save money for decades
- Gain job experience
- Create something or start a business
At the end of the day, you can only build wealth if you have an income.
Therefore, you need to be able to earn money.
As such, you need to gain career experience to be able to make more money, or you need to create something or start a business to generate income.
From there, you will likely have to remain frugal and save money for decades to become wealthy.
Otherwise, you will never be wealthy like the people who are spoon fed.
So accept your situation and get to work.
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