it is easier to become a millionaire today than it ever has been in history
One of the common misconceptions in modern life is that life is hard. There are certainly aspects which have made life harder for many in the dreary economic conditions we hear about relentlessly in the news, but that makes things better for you. Think about it – everybody is worried and fearful. That means all you have to do is be bold. Always be bold while others are in fear. In this way you’ll conquer much. Let’s break down how you can hack your lifestyle to start banking some serious cash, even if your income is lower than almost everybody.
1. Eliminate Every Expense
Do you smoke? Drink coffee? Do you really need to drive everywhere? Do you treat yourself out to eat every day, week, month? Stop. There is a time for enjoying life. But if you’re neck-high in student debt or you don’t have two nickels to rub together then obviously now isn’t that time! Remove absolutely every expense you don’t need. This may require some discipline if you’re used to doing whatever you want to do, but that’s no problem. I’ve got a solution in rule #2.
2. Occupy Your Mind
You must keep your mind on the goal. In fact, this should have been rule #1 – have a big goal that seems un-attainable. 6 figures is middle class now, so shoot for a million. You only need to make a little over $300,000 per year to be considered part of the 1%, did you know that? That means you need to figure out how to keep your mind occupied until you get there. After all, you’re not going to have time or funds available to go out to eat and drink coffee at Starbucks everyday now. The trick to this is to get into reading and networking. You can join most Meetup groups in your area for $5, and library cards are free. The top earning CEO’s read 1 book per week or more. Audio books are acceptable if you’re always on the go. So get seriously interested in studying with your extra time, particularly on a topic you’ll decide on in rule #3.
3. The Job & Business Hustle
There is no shame in working a full time job while getting your business started and up off the ground. But there is shame if you are only working and not starting to move toward the creation of a business at some point. I will detail later in another post a bunch of ways to make money while working and types of businesses you can start while working, but you’re going to need a second and third source of income at some point and, let’s face it, your job is not going to get you rich. Your job is voluntary slavery in the new economy. That worked well for the last generation, but us millennials came up during a different era. 1 out of 6 of us don’t even have a job at all, and 3 more out of 6 of us only work part time. That means there are 2 out of 6 millennials have a job with a satisfying income or is filthy rich. And if you know the income statistics of this country that isn’t too hard to believe.
4. No Girlfriend
If you’re a woman, I would presume that you’ve picked a man good enough to cover the tab at dinner. But if you’re a man, I’m urging you to leave women alone until you’ve built up enough of a foundation. This isn’t a testament against women, it’s a testament against your own emotions. We men will buy things for the women we love. We will spend every last dollar on them if we want to and our hearts will bypass our heads every time. So lay off them for a while.
5. Choose Your Work Location Wisely
Ideally, you’ll want to work at a place that you can walk to. And by “walk to” I mean within 7 or 8 miles. I’ve walked to and from work personally up to 10 miles before. You can do it every day. This will save you a car note, insurance, gas, and repairs while keeping you in tip-top shape. Remember, you’re trying to stash some cash on a $12 / hour salary, which is fairly average in 2016-17.
6. Pay Yourself & Make It Hard To Borrow From You
First order of business during each pay cycle is to determine an amount you’re going to pay yourself. The math doesn’t lie and is real simple. How much money do you want to have in 6 months or a year? That isn’t a long time. If you want $10,000 by next year, that will cost you $200 per week in savings. But you’ll have enough money to open up a small store-front or buy advertising for a website. There are a lot of options. Also, a little trick I learned, make your savings number a little odd. For instance if you want to save $10,000 in a year, put away $206.77 or something weird like that. That $6.77 adds up and you wont notice it that much. Then just don’t think about it.
Now, even if you’re on a $12 / hour salary, you can still save at this rapid pace. What you’ll have to do is raise the amount of dependents you have on your taxes to 5 or 6. Your goal is to try and pay little to no taxes whatsoever, then worry about it later. You can often defer tax payments for a while. But the better news is that in your income bracket, you likely will still not pay any taxes. You just might not get a refund. If you do end up paying any taxes it will be negligible.
This is probably the most important step in all of this. It will require you to live on salads and sandwiches that you prepare ahead of time (tuna-fish and eggs too). Your grocery budget will be about $35 / week and your housing expenses will allow for about $100 / week. This means going into shared housing. But news gets better! Here’s how to save even more than you put into it.
7. Gold, Silver, and Diamonds
You can go to your local pawn shop and buy gold and silver bars. Instead of holding onto $200 of cash every week, buy gold and silver in the mean-time. Silver is a very strategic commodity to hold right now because you can buy so much of it for so little. You can buy 10 ounces of silver for only about $160 – $170 at any coin shop (as of Jan 1, 2017). The best part of this is that you can’t spend it while it sits there increasing in value every month or so. The same goes for gold. During the 2008 financial meltdown, gold and silver spent the following 2 years skyrocketing in price. Gold became higher than platinum at nearly $2,000 / ounce and silver was over $40. If you double down on silver now and those returns come again you’ll end up with close to $30,000 with the $10,000 you just saved. Chances are the market will repeat itself very similarly because we’re headed for a similar financial event at some point or another. It is inevitable. In 2010 diamonds also saw a massive rise in value. Traditionally, gold and silver are the de-facto safe-havens for money though. That’s why the rich always have gold and silver reserves.
Cashing out is easy, too. You simply go back to the same pawn shop you bought the gold or silver from and sell it. Because of the amount of it you saved up, the owner will be happy to give you 90 – 95% of its market value due to the high volume of it. Pawn shops are able to sell it very quickly (when I owned one, I was able to sell gold I bought the same day I bought it). So you’ll never be stuck with this investment. A word of advice though, always buy it in physical form, never on paper.