Below, I’m going to provide you with a road-map to show you some examples of everything I’ve ever researched and practiced in my own financial life to grow my net worth.
By the time I was 23 years old, I had built up a six figure net worth for the first time in my life.
During my journey as a young adult, I learned a lot about budgeting, stock and real estate investing, and mastering my skills for personal money management at an early age.
What I discovered was this:
- There’s no magic formula for making money that works the same way for everybody. If there was, everyone could do one thing and be rich!
- The only way to honestly and ethically build your net worth is to educate yourself on the basic principals of personal and business finance. You do this by reading blogs, financial news, and learning from books. Then you have to put that knowledge to work in real world investments like real estate or the stock market. Or start a unique business idea.
- Remember the number one financial rule that matters the most: It does not matter how much money you make, it’s how much you keep that matters.
First, Focus On Buying Your First Home
I did not achieve my first 100k of net worth until I bought my first home. I was 21 years old and achieved that goal by saving a small amount of money and using a first time home buyers loan.
Since I live in California where rents usually just keep going up, I wanted to own my home so I could lock in my monthly payment and not worry about rents going up and up.
Second, Invest In The Stock Market For The Long Term
Time in the stock market matters more than trying to time the market. After you build up savings account to cover 3 – 6 months of living for an emergency fund, you’ll be ready to invest. Every month put as much money as you can out of your monthly budget to build up a long term investment portfolio.
Third, Make Sure Your Career Can Keep Growing Your Income (Or Start A Business Instead)
If you hit a plateau in your career and can’t generate anymore more money it may be time to start thinking about a new career or business idea. This is obviously a very big decision you’ll have to make and everyone is forced to think about it at some point during your working years.
As I write more articles on this blog, I’ll be building this page out with links and other resources to help you through these three easy steps for building your net worth.