Do you find yourself daydreaming of a life with abundant wealth? Do you envision having such financial freedom that all your mundane worries disappear? If yes, it is time to get creative and pave a path towards building the lifestyle you are craving.
It may seem daunting but by breaking it down into three simple steps, attaining next level wealth doesn’t have to remain an elusive dream! So buckle up and follow along as we explore what it takes to acquire high levels of prosperity.
3 Steps To Next Level Wealth
#1. Pay Off High Interest Debt
Paying off debt isn’t always easy, but if you want to build a high level of wealth, it’s essential. This is because when you have debt, you are making someone else rich, not yourself. Not only are you paying back the amount of money you borrowed, but you are paying back extra thanks to interest.
The only way to start building your own wealth is to get rid of your debt. And you should make it a priority to pay off your debt as quickly as possible. This is where the debt snowball comes in.
You organize your debt, from smallest balance to largest, and make the minimum payment on each, except for the smallest balance. For this debt, you put all the money you can towards it. When it is paid off, you do the same of the next smallest debt, and so on.
Once you have your debt paid off, you can move on to the second step.
#2. Invest As Much Money As Possible
Once your debt is paid off, you need to take that money and start investing it. When it comes to investing, you don’t need to invest in anything extravagant. Simple index funds work best.
Pick a large cap stock fund, a small cap stock fund, and a bond fund. Put 20% of your money into the bond fund, and 80% into the stocks. Of that 80%, put 45% into large caps and 25% into small caps. Then leave the investments alone.
After you set up your portfolio, your only mission is to invest as much money as possible, as often as possible. This is because the amount you invest and the time you invest for have the most significant impacts on your wealth. Too many people get caught up in finding the perfect investment or try to chase returns.
But if you look at the most successful investors, most pick an allocation and stick with it over the long term. It is the best way to become financially independent.
#3. Find A Side Hustle You Can Turn Into A Business
Many people have side hustles these days, but most have them to help them make ends meet. You want a side hustle that you can scale so you can invest the maximum amount. So while that gig delivering food is an easy way to make an extra $300 a month, you want more.
Ideally, you want to work a side hustle you could turn into a business. For example, you could start mowing lawns. Mow as many as you can and do a great job. As your referrals pile up and you can no longer handle all the work, hire someone to help. This snowballs and eventually you aren’t mowing lawns, you are management, earning a nice income without much work.
This is how to attain FU money. If you stick with a go nowhere side hustle, you will always be working for someone else. When you have your own business, you make the decisions and control the show. Eventually, the business is worth a significant amount of money and you can sell.
Invest your windfall and you won’t have to worry about money every again.
There is the three step place to attain next level wealth. The process is simple, but it takes dedication. You aren’t going to pay off all your debt overnight. You won’t have a $1 million dollar portfolio overnight. And you won’t build a thriving business overnight either.
It takes time, discipline, and hard work. But it’s a proven path and if you stick with it, you’ll be the one laughing all the way to the bank.