Broke to One Million: A Seven-Year Journey in Seven Steps
I grew up in a typical middle-class family. Money was not an important topic. I had to learn everything on my own.
You may find yourself in a similar situation. If you do not have the tools to begin, you must educate yourself. I will tell you my story, so you can use it as a starting point.
Step 1: Educate Yourself
The first step is acquiring knowledge. Without knowledge, you are going to go nowhere.
Here is a list of books that I personally* recommend:
If you are in debt start with Total Money Makeover. If not, you can read any of the others. To start you do not need to read all five. Just read a couple to get the mind focused. As your journey picks up read the others. They all help in different ways. Podcasts, blogs, and Twitter feeds are also great.
Just begin to surround yourself with knowledge and absorb the wealth of information.
Step Two: Create the Environment
You have the knowledge. Now, let's make some changes to the outside world. Shed any friend who holds you back. Some will sense that you are changing. If they will try to bring you down. You MUST ditch them. They are not true friends.
Recognize what true friends are. True friends want to see you grow.
Tip: Surround yourself with people who are on the same journey. You will feed off each other's momentum.
I am sure you have heard the saying, “You are the average of your five friends.” Always remember this.
Step Three: Relentless Savings
Savings are what you can control. This is where you start. Every time you cut costs it is an automatic win for your pocketbook and an automatic win for your cash flow. Most people want to case cash first. This is the wrong approach. Understand value.
You need to cut out the fat. Question every dollar spent. Avoid “unlimited plans” and negotiate everything.
The first time I got serious I slashed my yearly spending by over $25000. That is not chump change.
How much did you spend last year? Do you even know? You need to know.
Step Four: ACTION
This is where you implement your side hustle. The goal: INCREASE cash flow. What will it be? You have options. Second job. Side Hustle. You could even work more hours if you have overtime. Try different things. Be creative.
I naturally went toward flipping. It is simple. You buy an item. Then you sell it back for more than you paid. I will have future posts detailing my flipping experience. My point right now is you need to get your hands on more money. But what you do is up to you.
Whenever you implement a side hustle, it is a beautiful feeling when it blows up. It is hard to explain. Two incomes at once feels GREAT. Those who have experienced this feeling know what I am talking about. Give yourself a raise.
Step Five: Invest
Now you have more coming in than ever. Your expenses are low and your income is high. Let’s learn to invest.
If you live in the US, take advantage of tax-sheltered accounts. Lower taxes are guaranteed wins. Understanding tax codes are the quickest way to wealth.
If you want to take a different route you can open an account at an investment brokerage. I recommend low-cost index funds that track the S&P averages. YES, I know I personally invest in growth stocks, but I am giving you the guaranteed blueprint. Over long periods of time, you cannot lose with this method.
Step Six: Stoic Mindset
Now you have fewer expenses, more income. and large investments. You need to keep things that way. You need to let all this money snowball. The Stoic mindset is literally the antidote. The problem is lifestyle inflation. Do not let consumer goods and greed run your mind. You run your mind. Learn control through stoicism and arm yourself with the Stoic mindset.
If you are new to this philosophy you can read The Guide to the Good Life by William Irvine. It is an excellent book detailing the stoic mindset from a modern day perspective. You can also read Tactical Stoicism by Success Theory. This book includes journals and worksheets that accompany the text. Both are great options.
Step Seven: Life Begins
Have you implemented the six previous steps? Good. You will be a Millionaire. I promise.
You can thank me now. Give yourself 7 to 10 years. You cannot lose. Once you reach your goal, life will change drastically.
Your mind will change. Trust me. When you have a million in the bank you are free to do as you please. You can call it FU money. I don’t care. If someone at your job asks you to act unethically… FU. You do not have to put up with anything. You are the millionaire. Not them.
You have the power.
*The Art of Purpose is an Amazon affiliate. I am very selective about every product that I endorse.
