You must have heard of the term, self-made. Have you pondered on the core meaning of this word and how it has shaped the minds of many financially successful people across the world?
Anyone who’s self-made is someone who figured out how to get rich from nothing. No inheritance. No rich family. No initial big connections. Just pure hard work, strategic thinking, and some risks taken. This is how many rich folks you know today attained financial success despite coming from humble backgrounds.
In 2019, a report by Wealth-X revealed that 67.7% of the world’s ultra-wealthy population (people who own at least $30 million in assets) were self-made. This is real-life statistics and factual data to prove to you that it’s possible to skyrocket your finances from the bottom to the top.
In this post, we will walk through the actionable steps to getting rich from nothing. You’ll learn the practical ways to build wealth and accomplish a life of total financial freedom. Let’s dive in.
What Does Being Rich Mean?
Being rich means you have millions of dollars in assets. It means you can easily afford anything you want to make your life pretty comfortable. Most wealthy people set up reliable passive income streams that regularly bring in cash. They don’t even have to work hard anymore.
Is It Possible To Get Rich From Nothing?
Getting rich from nothing obviously seems far-fetched, but it’s very possible. When you possess the right skill sets, network with high-profile individuals, and then tap into the right opportunities at the right time, you can make yourself a lot of money that will last for generations.
Actionable Tips To Help You Get Rich From Nothing
Wishful thinking won’t get you anywhere. Rather than fantasize about how you can make all the money in the world, get to work and do what has to be done to realize your dream. Here are 10 tips to help you get rich from nothing:
1. Start Learning About Money
If you want to change your life, change your mindset. This is because everything you do stems from your way of thinking. Hence, learning about money is paramount.
Invest time in acquiring financial education and start understanding terms like income, expense, return on investment, passive income, and financial independence. The information you seek is freely available in books, podcasts, and online courses on personal finance.
If you are listening to finance podcasts, for example, you can create a short list of seasoned financial advisors that you regularly tune in to. You shouldn’t just listen to any random podcaster talking about money. Getting first-hand information from experts will fast-track your learning journey.
2. Get A Reliable Stream Of Income
If you want to learn how to get rich from nothing to millions, you have to begin by stabilizing your stream of income. What you earn should be enough to pay for your bills, make debt payments, save, and make meager investments. Until your income allows you to do all these things, there will be nothing for you to build on. So get another job if your current paycheck seems too small.
Aside from finding a better employment opportunity, you can start a side hustle to increase your income. Affiliate marketing, dropshipping, and freelancing are some of the profitable online businesses you can do on the side to make extra money.
3. Create A Budget
Managing your money the right way is crucial if you want to know how to get rich from nothing. By building a budget, you can make better buying decisions, save money, and keep track of your expenses. Every household needs a monthly budget to ensure they don’t overspend or live above their means.
A well-known strategy for budgeting is the 50/30/20 rule. This technique suggests that you spend 50% of your income on essentials such as rent, mortgage, food, and healthcare. 30% will go for non-essential expenses like shopping and entertainment, and 20% should be put toward your savings and investments.
4. Get Enough Insurance
Building wealth is good, but it will be devastating to lose your finances in unforeseen circumstances. This is why you have to insure the things that are most valuable to you. Even if you can’t protect assets like properties and cars, you should have health insurance at least.
If at any point you fall critically ill, you won’t have to break the bank to get back on your feet. Besides, if you have kids or dependent relatives, it will be best to subscribe to term life insurance.
The people you care about should have something to fall back on if you are no longer available to look after them.
5. Save Money Consistently
While using the 50/30/20 rule to budget, you may have to increase your savings extremely.
Begin by looking for ways to drastically reduce your living costs. If you have been dining out, this is probably the best time to ditch that habit. If you are subscribed to premium services or memberships you rarely use, it’s high time you cut them off completely. If your rent is a bit high, you can move into a smaller apartment.
Here’s the thing: living below your means will save you a lot of money. The more your savings grow, the more resources you have to plan with and increase your net worth.
6. Create An Emergency Fund
Part of learning how to get rich from nothing is getting prepared for emergencies. You need to be financially stable even when you encounter unforeseen events or circumstances that eat into your income. Building an emergency fund is how you protect your financial life. This self-funded insurance will help you pay for emergency expenses like car repairs, home repairs, etc.
Besides, if you lose your job or find yourself in another pandemic that keeps everyone indoors, your emergency fund could be the only financial backing you resort to. Instead of incurring debts that will damage your credit history, you can bank on the savings you have long reserved for emergencies.
7. Improve Your Skill Set
To make money most times, you need to either equip yourself with new and relevant skills or improve your current expertise.
As an employee, improve your skill set by getting more knowledge in the field you work in. Take professional courses that will contribute to your career development. If your employer knows you are becoming more skilled and efficient at what you do, you may be promoted.
If you run a small business, on the other hand, increase your knowledge of the market. Learn about your competitors and figure out creative ways to reach more prospects. This will help you close more sales and boost the revenue of your venture.
8. Explore Passive Income Ideas
While trying to increase your income, you should also explore various passive income opportunities that could make you financially successful. Passive income is money earned without continuous labor. This means you don’t have to put in any active work or invest a lot of time to earn.
For example, if you create a digital product (an online course or ebook) that people are interested in buying. All you have to do is promote it as much as you can and then relax as your sales roll in.
Blogging is another way to earn passive income. Once your blog is monetized on Google Adsense, you can make money continuously even without publishing new content.
9. Embrace Passive Investing
Learning how to get rich from nothing requires strategic investing, especially in the area of buying assets and being a part of passive income ventures.
Many of the millionaires you admire today acquired most of their wealth through passive investing. Warren Buffett, one of the world’s richest men, once said that making money while you sleep is the best way to earn.
Investing in the stock market, for example, is one way to achieve this. When you buy stock ETFs in several large successful companies, your investments will be allowed to grow and yield interest. You don’t have to do any work to grow your profits. That’s the responsibility of the company you have invested in. You can only monitor your investments and watch how they perform in the market.
10. Learn To Manage Your Portfolio Of Investments
As you figure out how to get rich from nothing through passive investing, don’t forget you sometimes need to manage your portfolio.
Investment options like stock ETFs, bond ETFs, and REIT ETFs are usually monitored from a single portfolio. It’s the only way to observe the risks in the market and make better investing decisions in the future.
Thankfully, you can now use a robo-advisor to manage your investments easily. It usually analyzes the market and tells you the right way to diversify your portfolio, thereby minimizing the risks that come with passive investing.
Examples Of Rich People Who Came From Nothing
Having discussed some of the ways you can build wealth from nothing, let’s crown it all by briefly looking at the lives of people who have actually succeeded in this. Here are 5 wealthy and revered figures who came from nothing:
Steve Bisciotti
Steve Bisciotti was raised by working-class parents in the US who struggled to make ends meet. While in high school, he was often b#llied for being “poor”. Steve couldn’t accept the harassment anymore and decided to drop out.
Although he grew up in poverty, his determination to succeed financially couldn’t be hindered by anyone or anything. Steve went on to build a lifestyle and fashion company from scratch using his savings.
As of today, he owns one of the world’s largest collections of contemporary art. He’s also one of the richest entrepreneurs in France.
Larry Ellison
Larry Ellison is another revered businessman who figured out how to get rich from nothing. Long before he became the co-founder of Oracle Corporation, he grew up with his aunt in Chicago where he had an ordinary life.
He later lost his aunt to a sudden d##th and couldn’t attend high school anymore. But after working several odd jobs for almost a decade, Larry established his own company in 1977.
As his establishment grew, he attracted wealthy investors who grew the company into one of the largest ventures in the world. With a net worth of $103 billion, Larry is now considered the third wealthiest person in America.
Howard Schultz
How many times do you grab a Starbucks coffee a month? Well, Howard Schultz is the chairman and CEO of this amazing company with thousands of employees.
Having grown up poor in a housing complex, Howard was desperate to escape a life of poverty. After graduating from college, he worked at an obscure coffee shop where he later took over.
He brilliantly built that one coffee shop into the worldwide franchise and multi-million dollar establishment everyone knows as Starbucks.
Do Won Chang
If you are looking for the perfect example of someone who learned how to become rich with no money. You should read about Do Won Chang’s success story.
Born in South Korea, he moved with his wife to the United States to evade a poverty-stricken life. He wanted the American dream so badly, and he eventually got it.
After working as a gas station attendant for several years, Chang invested his life savings of $11,000 in starting a clothes retail store in 1984. He grew the company into a multi-billion dollar establishment before selling it in 2020.
Ralph Lauren
Ralph Lauren is another interesting figure who believes anyone can know how to get rich from nothing.
Born in Bronx to immigrant parents, he was one of the poorest kids in high school. Although he later went to college, Ralph couldn’t complete his education. He dropped out due to financial constraints.
After working as a salesman for a tie company, he chose to start designing his own ties. He eventually started selling them to small shops in New York before opening his first store.
After 5 decades of hard work, Ralph has a net worth of $6.6 billion and remains one of the most revered names in the American fashion industry.
Recap: How To Get Rich From Nothing
If you have ever wondered what it takes to become financially successful despite having nothing, you probably have your answer now. This post has clearly examined the most basic steps to help you understand how to get rich from nothing.
Practice them consistently and watch how your life begins to tilt toward the bright side. Don’t forget you are solely responsible for your finances. It’s high time you stepped up and did the needful.
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