How to Build Wealth in 3 Simple Steps

One of the most common questions I have received since starting this newsletter is how to start building wealth fast. It makes me happy to hear that you guys are looking to make more money now and not have to wait until retirement to start enjoying your money.

I will share with you the blueprint for wealth-building. However, it is not enough to read this information and think, "Oh, this makes sense!" Or "I already knew this; tell me something I do not already know."

You can not just read about financial education and not act upon it. You need the discipline to put in the work and stay committed to the journey. Here are three simple steps to help you transition from the low-middle class to the upper class.

1. Increase Your Income

The first step is to make more money. It does not matter if you are making $40,000 or $200,000. You have to start making more money. You can do this in two different ways: either decrease your expenses or increase your income. If you can do both, the results are amplified.

Let's start with lowering your expenses. It is important to track your budget and see where your money is being spent. Then you can analyze where you can save some money. I always recommend cutting out unnecessary spending.

I’m not talking about your Starbucks coffee. But, if you have multiple subscription services, I would recommend cutting back to just one. Consider cooking more often at home if possible. Try taking public transportation instead of using Uber everywhere. Again, it is up to you where to cut back.

Now let’s talk about how you can increase your income. The first thing I would recommend is reading my guide on negotiating a higher raise at your current job.

I would normally advise you to simply switch jobs to get an extra 20–25% raise, but given the current economic climate, I would advise you to avoid doing so for the time being.

The next step is to find a side hustle that can help you generate additional income. It does not matter how much you earn, as long as you earn some type of money. The core focus of this step is to start making extra money.

Once you have mastered a side hustle and are earning enough to replace your 9-5 income, you can start looking at starting a business and stepping away from earned income.

2. Invest Your Money

Now that you are making more money, it's crucial that you do not leave this money sitting in your checking or savings account. It is imperative that you start investing that money.

The main focus here is that you need to make your money work for itself. The easiest way to do that is to start by investing in the stock market. The current economy makes it an attractive time to start investing if you are looking to adopt a long-term strategy.

If I were starting out, I would max out my 401k and Roth IRA before I started investing in a brokerage account. Once you have that taken care of, you can start looking at investing in real estate or cryptocurrency.

My current investment strategy for the rest of the year is currently looking like this:

• 401K: $500/month
• Roth IRA: $1000/month
• Brokerage Account: $1000/month
• Cryptocurrency: $100/day

This also does not include a two-family house construction project that I'm about to start next month.

3. Invest In Yourself

The final stage is educating yourself. You have to continue to learn. If you are not learning, then you are not evolving.

One important aspect of becoming wealthy is that you need to continuously expand your knowledge. You can do this by reading books, listening to podcasts, or attending seminars. There are so many options out there.

Here is the learning strategy that I have been using for the past 6 months:

• I read books on my commute to and from work. This allowed me to read two books per month. This past Friday I started my 12th book of the year, The Compound Effect by Darren Hardy.
• I listen to podcasts daily during slow times at work. Some of my favorite ones include: How I Built This, My First Million, The Mindset Mentor, and NYC Local Guides.
• I try to learn new skills through free education on YouTube. I learned web design from YouTube, which definitely made it easier for me to start this website.

Trust the process and push yourself to educate yourself on different topics.

Have a great week!

Muhamed

📖 Quote of the Week

Rich people take advice from people who are richer than they are. Poor people take advice from their friends, who are just as broke as they are.

From Secrets of The Millionaire Mind, by T. Harv Eker