Wealth. What is it? How do you go about getting it? Why do some find it easy while others struggle?
Growing your wealth is simple but it is far from easy. If it were we’d all be rolling in dollar bills and the banks would go broke because no one would be paying them interest.
It’s possible for anyone to grow their wealth and live comfortably.
The truth is that not everyone is going to do it. Our personalities are too different. Our wants and needs vary.
While others are capable of delayed gratification, patience and hard work, there are those who prefer to squander every penny they earn and then some.
This makes the economy go round. The government doesn’t want us saving all our hard earned cash. They want us to spend it.
Spending isn’t all that bad – if you can afford it.
Society needs to spend money on food, going out, clothes, entertainment, services and other products in order to keep the economical wheel spinning. As soon as consumers stop spending the economy starts to shit itself – panic, an increase in unemployment.
So while frugality may benefit your bottom line (and destroy your sanity – at least it would mine) it won’t necessarily help your community.
That doesn’t give you permission to spend. Nor does it mean you have to give a fuck.
But it does give you reason to find a balance that works for YOU.
Check out these 23 Hacks to grow your wealth today!
1. Automate your savings.
It’s not the amount that matters but the habit. Even starting with $10 from each pay that automatically gets sent to your savings account is a start. Once you stop noticing the amount gone from your spendings account double it or just increase by $5 or $10 each time.
2. Collect your change.
Grab a savings jar and start putting all your spare change in there at the end of the day or week. Come the end of the month, visit your local branch and deposit the money in a savings account.
3. Ask for a pay rise.
This is the simplest way to start earning more money. If you work hard, go above and beyond your normal work responsibilities you could be missing out on extra cash. Create a case for why your boss should pay you more and present it. Always ask for 10% more than you expect to receive. It doesn’t hurt to ask.
4. Chop the credit cards.
Pay off all your credit cards and cut them up asap. Credit cards suck. Unless you pay them off in full each month there’s no room for them in your life.
5. Get a better deal.
Shop around for better interest rate on your mortgage. It’s amazing how complacent people get about their finances. The mortgage is probably the most you’ll spend on one item. It’s also the longest loan term you’ll ever have. Shop around with different lenders to see who can offer you the best rate. (Just make sure that there aren’t any nasty refinancing costs that may eat in to your savings).
6. Make extra repayments.
An extra $100 per month on a $200,000 mortgage over 30 years at 5% interest will save you almost 5 years and $25,000 in interest. That’s no small change.
7. Purchase an investment property or two.
If you’re renting and don’t feel like owning your own home you can still get into the property market. Purchase a place and rent it out and you’ll be able to claim the expenses against your tax and your tenant will pay the property off.
If you buy one at 25 over a thirty year term, when you hit 55 you can either live off the rental income or sell the property and keep the lump sum.
Make sure to talk to a financial adviser before you do anything of the sort!
8. Up your skill set.
Investing in yourself is one of the best investments you can make. What can you do to further your education or practical skills? Join Toastmasters if you find it difficult to start small talk or need a boost in confidence when presenting to your peers or the Board. Sign up for a computer course if you want learn HTML.
9. Get a side hustle.
Having another stream of income is great for the bottom line. You can pay off debt quicker or increase your savings or even go on that holiday you’ve been dreaming of.
What are you good at and enjoy doing that can earn you extra money? Calligraphy, dog walking, babysitting, copywriting, photography, tutoring, anything you can think of – people pay for the craziest of things.
10. Find a second job.
If you enjoy working for the ‘man’ you might be suited to getting a second job. Moonlighting is a great way to earn more. Become a shop assistant, write code, waiter at your local restaurant, drive Uber. Whatever tickles you fancy.
11. Rent out a room.
Do you have a big house and a few rooms to spare? Why not rent out a room to an international student for some extra cash or a friend in need? It’s the easiest money you’ll make.
12. Pay for everything in cash.
Cash is the forgotten king. We’re so used to plastic that we can’t remember what cash actually looks like any more. It’s so common to say ‘Sorry, I don’t have any cash on me.” Start paying for everything in Cash and be more vigilant of what you’re actually spending your money on. It’ll make you think twice before taking out that $50 to pay for a top that you’ve already got in your wardrobe.
13. Take advantage of points.
Use credit card points to your advantage (free christmas shopping provided you’ve never had to pay interest!). If you’re good with credit cards and pay them off at the end of each month than it’s worth having one that offers points. You can redeem the points for vouchers at the end of each year and use the money to buy Christmas present. Makes December much cheaper!
14. Shop around.
Don’t be lazy. Laziness creates bad money habits. Competition is fierce and it’s becoming easier to find better deals on almost everything from kitchen toasters, to cars, holidays, and bananas.
15. Invest in quality over quantity.
Less is seriously more if you’re willing to invest in quality. Especially when it comes to things like clothes, shoes, furniture, pots and pans.
16. Create multiple streams of income.
It’s hard to build wealth with just one income stream. The wealthy of the world have multiples of them. That’s what you need to do.
Create extra income streams whether it’d be through investing in shares (they pay dividends), getting a rental property (the tenant pays your income), a blog (affiliates and ad networks can give you extra cash), mowing the lawns on your street (the neighbours could be lazy). Increase your streams so that you never just rely on one.
Now that’s what I call job security.
17. Invest in yourself (cut the tv and start listening to podcasts/reading books).
Further education is vital to your self-worth and your ability to grow as a person.
We are not here to stay the same for all eternity. Growth, progress and evolvement are as vital for you as a person as they are in business. If you have areas in your life that are not up to par then start by working on them a few minutes every day.
I love podcasts on author-entrepreneurs (my goal is to make money from writing fiction) and they motivate me to keep going and teach me about the industry.
18. Clear out the clutter and sell.
Clutter is exhausting. If there’s a lot of it in your home, car or desk, then it’s likely that there’s going to be a lot of it in your mind too. Sort through each room in your house and segregate items into four piles – KEEP, DONATE, SELL, CHUCK. Start sorting. Be honest. Feel refreshed and satisfied once you’re done.
19. Start your own business.
Ok, so most businesses fail and go bust within the first two years but no one is telling you to open a coffee shop, or keep thousands of items of stock in your garage. These days you can start a business with as little as $100 if not less. Love dogs? Why not offer dog walking services in your area? Do you like working in the garden? Get into the landscaping, lawn-mowing, or gardening in your community. Enjoy writing and have a decent hang of the English language? Start pitching your ideas or approaching businesses with your services.
20. Create your own success.
Do what makes you happy instead of copying those around you. Stop keeping up with the Jones’, Browns’ and Smith’s it’ll only lead to dissatisfaction with life. We’re all created differently. We all have different likes, dislikes, passions, and pet hates. Discover your own and tread your own path. That’s the only way you’ll find your happiness and your tribe.
21. Improve your health.
Health is the one thing that you cannot buy and is difficult to get back if you screw up.
While there are illness that we have zero control over ensuring that we eat healthy most of the time, keep moving, laugh lots, get enough sleep and maintain a comfortable weight will ensure that we are healthy most of the time. As you might invest financially you have to make room in your life to invest in your wellness too because there’s no point in having wealth if you can’t enjoy it because of bad health.
22. Take up a sport/hobby.
Having a passion is important to your health, wealth and happiness. It’s an opportunity to spend time with different people, learn new skills, get out of your comfort zone and have some fun. If you only concentrate on the money side of things wealth will be difficult to come by and you want to make it the process enjoyable.
23. Surround yourself with people who will bring you up instead of pull you down.
Hopefully your friends are awesome and supportive. But sometimes you find the odd one one out who just can never be happy for you and always brings you down.
That’s not who you want in your life.
Ok, if they’re telling you that jumping out of a plane without a parachute is a bad idea you probably should listen to them but if they are dissing your goals of saving a 50% house deposit, starting a business, going back to school, or publishing a novel, then you might want to question your relationship.
There’s 23 hacks that can help you grow your wealth. Which one are you going to start with today? How many can you get started on this week? Month?
I challenge you to pick THREE things that you can do today, right now, to start growing your wealth. It doesn’t matter how big or small they are as long as you get started and don’t look back.
You can email me at firstname.lastname@example.org and let me know which one’s you’ve chosen and how they’re going to change your life. Have you any other ideas to start growing your wealth?