7 Ways to Grow Wealth
We have to move away from the habit of saving to spend money to saving to make money.
The Misfit explores the existential questions facing our world. It brings together the diverse topics of economics, society, human thinking, and bitcoin. Here’s an archive of my latest articles. If you’re new here, my aim is to get you thinking each week about the way the world works, why, and how we can make it a better place. If you are one of the few subscribers who has already signed up - thank you! If you’ve been forwarded by someone else, get your own here.
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I live in a very expensive city; Vancouver, Canada. A city where a median wage earner can barely afford to buy a house, where wages are painfully low while cost of living is insultingly high; where foreign real estate investors are put on a pedestal, but local residents must fend for themselves.
I know how punishing it can be to live here as a millennial. That’s why it always boggles my mind to see Vancouverites spend a lot of money on things that don’t really matter in the long-run.
They forget that the goal isn’t to look rich. It’s to be wealthy. And to be wealthy one must have a long-term vision of their lives. To think about the actions that can be taken today to get to the promise land later on.
Here are seven steps you can take to bet on your future-self today.
1. Spend less than you make.
Too many millennials live well above their means because well, we’ve been trained to consume, consume, consume.
We live in a world dictated by powerful rich people and corporations whose best interest is for you to spend your hard-earned money. In a way, cutting your spending is a big F U to the system that be. It’s an act of rebellion and self-defense.
So next time your pay cheque hits your bank account, pay off your bills/debts, save and invest. Everything else is frivolous. You do not need it.
Lucky for us, we have the privilege of youth, energy, time and willpower to make sacrifices today that will catapult our wealth forward in the future. Use it to your advantage.
Side note: if you feel you’re not spending that much money and somehow you still don’t have enough, then you might need a new job - one that pays you more money.
2. Get out of your debts.
Don’t let debt drag on, like paying the bare minimum amount due on your credit card.
Not paying off your debts is a nightmare. Debt accumulates with growing interest the longer you leave it unpaid. It’s the epitome of being in a rat wheel.
Plus, this affects your credit score and your ability to make big purchases or take out big loans in the future.
Remember, we must always think of our future selves. Future-you needs today-you to be dependable, responsible and savvy. Pay off your debts on time and minimize it in order to open up doors for yourself in the future.
Side note: having said that, the only debt you should have is one to build wealth (but more on that another time).
3. Don’t be a snob. Buy second-hand stuff.
I was a snob until recently. I used to think: “eeww, it’s kinda gross to buy clothes that other people have worn. Who knows where they’ve been or what they’ve done.”
Ah yes, a little arrogant. But in my quest to build wealth I had a talking with myself. I got off my high horse and walked my snobby little self into a thrift shop… and guess what I found. A beautiful, classy new attire for just $20!
You’d be surprised by how many people donate expensive, un-used clothes at thrift shops.
The best part is looking good, while saving money and the planet. It doesn’t get better than that. I dare you to try.
Side note: don’t be a snob like old-me. You’re not above anything, my friend.
4. Have a job that values and rewards you.
You are never going to thrive as a professional if your job does not value you, give you the skills necessary to grow AND financially reward you for your skill sets.
I know this first-hand because I spent 4.5 years stuck in a job I hated and did not value me. It did not pay well either so I resented the company for it. I became cynical, turning into a person I did not recognize, sabotaging all the my future opportunities with the negative mindset I had. (Don’t ask me why I stayed there so long, I have no clue.)
That’s when I learned a powerful lesson I hold dear to this day.
Your job today plays an active role in the wealth you create. Not just for monetary reasons. If it’s not serving you, it’s killing your spirt, which will destroy your inner hustle, your belief in what you can achieve and your ability to create wealth.
Your job matters more than you realize, don’t sleep on it.
5. Get multiple streams of income.
Warren Buffet once said: “Never depend on single income. Make investment to create a second source.”
One year, I got laid off twice - both times due to mass lay offs. Regardless, my spirt took a massive hit. I spent endless hours on the phone with Employment Insurance. I wasted time and energy figuring out how to stay afloat. I was filled with fear.
Had I had a side hustle, or investments generating income, I wouldn’t have struggled as much as I did. I could’ve fallen straight into my hustle and been OK.
I quickly learned that I could not trust any employer, that I need to always prepare for the worse, and if possible attach my name to a personal project that can become profitable.
After all, nothing is more powerful than having something you create with your name attached to it. Who knows… it could become something bigger than you ever imagined.
“You just might be a black Bill Gates in the making, cause I slay” - the wise Beyoncé.
6. Get out of cash and into investible assets.
Our world punishes savers. Inflation rates are at an all-time high. Our purchasing power is decreasing year after year. Our savings account are quite literally shrinking before our eyes.
Instead invest your money in the stock market, real estate…whatever it is you believe in, invest in that. The ironic thing is that the same inflation that shrivels your purchasing power is also growing your investable assets.
Now, if you want to be wise about investments, consider buying bitcoin. It’s the best hedge against inflation and the best way to protect your purchasing power.
Bitcoin is a digital asset that is scarce and hard to produce. It cannot be manipulated, or censored, or taken from you. In this way, it’s a safe haven in a world where market manipulators are making themselves disgustingly rich while the rest of us struggle.
If you’re afraid of bitcoin, that’s ok. It’s normal. We fear what we do not know.
Consider having some quality time with youtube and when you’re ready, buy bitcoin. The good thing is that you can buy fractions of a bitcoin, like $10 if you’d like!
Bitcoin is here to stay, make sure you have a foot in that door because it’s only going to blow up more in a few years.
7. If all else fails, vote with your money and feet.
If it’s getting hard for you to build wealth from the place you’re at, remember you have a choice.
You can vote with your dollars by buying and investing in what you believe in. If that fails you, you can vote with your feet by moving to another city or country that will make it easy for you to grow wealth. You are by no means bound or stuck to the place you live in.
As a Venezuelan, I know first-hand how quickly a governing body can turn on you. Trust nobody. Practice your rights. Protect yourself and your wealth.
A Final Thought…
It’s your younger self’s job to look after your older self. Take a moment to imagine the person you want to be. The very same person who will be affected by the choices you are making today. Then plan to take care of future-you by investing consistently, automatically and wisely.
Thinking and planning for the future is the greatest act of self-care and self-love you can practice. Do it like a motherfucker.