How I Am Building My Wealth

creating wealth is not the only way

Photo by Towfiqu barbhuiya on Unsplash

Creating wealth

I always thought that creating more income streams is the only way to become successful.

Successful in my view is —

1. Paying bills
2. Future secured
3. At least one property in my name
4. Secret savings (my mom taught me)
5. Debt-free life
6. Can take an international vacation
7. Work only few hours after 30s (I am currently working on this. Still long way to go!)
8. and so on.

I am sure you can come more ideas like this one. But you know what, to have a successful life I always paid attention to only creating wealth.

Never paid much attention to my spending habits.

My spending habits

With more income, my expenses also increased.

You know the first time when you hit your dream number? What did you do? Saved up that money? Or put it back to your business?

Most chances that maybe you spend it on — parties, expensive gifts, travel, and shopping, right?

Let me tell you what I did.

Most of the money went straight into the wallet of big online stores where I used to shop a lot.

I bought a cream-colored shrug from Amazon that I wore only once.

I bought a whole YouTube creator set from Amazon that I didn’t used for 5 years.

I bought a bunch of T-shirts, skirts, and even shoes. Yup, the story is the same for all. I used them only a few times before my size changed.

It’s really hard to control our spending habits when our focus solely on making money.

Creating money and saving money. Do it together.

How to build wealth in your 20s

These are only few tips. But I am pretty sure this will help you a lot.

1. Create a budget — Now I have started budgeting. At the end of the year 2023, I calculated my income for the first time. And realize that I actually spend a lot that could have easily put into a savings/investment portfolio. There are many software out there to keep track of your budgets — daily, weekly, monthly, and annually. I use this easy spreadsheet.
2. Have a retirement fund — if not then I’ll advise you to have one. We are not planning to earn even when we are old right? today we can work 20 hours a day. But is this possible when we get old?
3. Increase your income — You can do this by building more income streams. Or the better way is to increase income of your current work. The latter is the best option in my view.
4. Live a minimalist life — I believe in this mantra now — If you want to be rich then simply cut off the expenses wherever possible. Instead of takeouts, have dinner at home.
5. Pay off debts as soon as possible — If you have one, save money from your monthly budget and pay off the debt as soon as possible.
6. Savings. Savings. Savings — The secret of living a financially free life. Save a lot and tell now one — my grandpa used to say.
7. If possible find a financial mentor — for me, my mom and brother are my financial mentor. They know about finances better than me. They HANDLE money much much better. I am sure you must have someone in your life who can handle finances better than you. Learn from them.

Conclusion

These are just a few tips that I thought to share with you. Financial freedom cannot be achieved in a few days or weeks. Or even months!

It takes time consistency and effort from your side.

take one step at a time. This is the only way to become financially free.

See you soon!

If you are interested in budgeting then this is a link to the sheet — Ultimate Budget Tracker.

Related Articles -

How I Track My Finances