Have you ever asked yourself why so many people go to college well some students
go to college to satisfy their parents wishes the majority of students at
college are there to obtain a degree that will offer them the chance to land
a secure high-paying job unfortunately not everyone has access to the same
quality of education and some people never earn even close to six figures a
year so does that mean they will never be rich
not quite and in this video I will share with you how to get rich with a low
salary and if you're new to the channel then hit the subscribe button below for
more life-changing content when it comes to building wealth there are two sides
to the equation there's the income side which allows you
to scale up your wealth quicker the more money you make then there's the savings
side the savings side of the equation is impacted by only one thing how much you
spend now since not everyone has a high paying
job those who earn lower salaries need to be extra diligent in their financial
matters in order to maximize a saving side of the wealth equation luckily even
with a lower salary the opportunity to become rich is more than possible and
I'll now walk you through seven steps you must employ in order to get rich
with a low salary step number one start your wealth journey now one fatal flaw
of humans is our tendency to procrastinate we put off saving for
retirement finding our dream job or making changes that will bring us
financial happiness because we feel as though we have all the time in the world
to make these changes however the truth is that as a low salary earner one of
your most powerful assets in building wealth is time and you must use the time
you have to its full potential don't push off things or spend money
carelessly today thinking that you can just flip a switch tomorrow next month
or next year and be well on your way to your future rich lifestyle start
building financial momentum now by establishing money saving habits curbing
your spending and employing sound financial principles into your
day-to-day life step 2 understand that a frugal life can be an
enjoyable one as I've already mentioned when earning a low salary you must be
diligent in your saving ways in order to grow your wealth but being frugal
doesn't mean your life has to be boring sadly many people see those who save
money as being just that but this doesn't have to be the case I believe
that you can balance living a good life along with saving a come
amount of money there are plenty of ways to entertain yourself with us spending
tons of money like watching Netflix or spending time with family and friends in
fact I would argue that most free activities like the ones I just
mentioned offer us more happiness than buying an expensive car or a fancy watch
ever could therefore while earning a lower income your path to riches may
require you to be financially responsible but it certainly doesn't
mean you need to be boring step number three set SMART goals whether you're
earning millions of dollars a year or just a fraction of that amount having
financial goals is crucial to your overall success first having goals
allows you to set out a detailed path to your success which reduces the time
wasted trying to maneuver your way towards financial achievement second
they act as motivation especially when reviewed daily but what separates the
use of goals by those who become rich and the average person is that they know
the secrets that can exponentially increase the achievement of their goals
one way to heighten the chances of achieving your goals is to use these
SMART goal framework this method requires your goal to be specific
measurable achievable realistic and timely for instance as a low salary
earner your financial goal could be save and invest six thousand dollars in 12
months by setting up monthly investment contributions with my money manager
having a robust school that satisfies all the elements of the SMART goal
framework will make you significantly more likely to reach your financial
achievements step number four build and stick to your budget everyone needs a
budget whether you have a million dollars already in the bank or are
working for a moderate salary unfortunately not everyone truly
appreciates just how important budgets are when trying to reach your financial
goals a recent survey showed that more than
60% of households in the US do not have a budget which if you ask me is a
primary reason why more than 75% of all Americans are living paycheck to
paycheck and as a low income earner you will need to be even more calculated in
your budgeting ways then your high income earning counterparts since you
have less income that you can afford to waste now many people see the creation
and adherence to a budget is a chore but using this powerful financial tool
offers many benefits first budgets allow you to track your progress towards
equals you've just created moreover having a budget will give you a sense of
financial control which will reduce the stress you
associate with the overall management of your money finally having to input your
salary and expenses into your budget forces you to remain cognizant of your
financial state which will lead you to make more financially beneficial
decisions step number five eliminate high interest debt
besides overspending having to pay debt interest payments every single month
will be the biggest obstacle you'll face when trying to become rich while earning
a low salary you see while I often recommend that money not being spent on
living expenses be invested to allow your money to work for you in most
situations paying down that makes more sense as of 2019 the average credit card
interest rate was nineteen point two four percent annually and earning this
type of return in the market is very unlikely which means it is better to be
paying down a high interest debt then leveraging the power of the stock market
to grow your wealth and just how punishing can interest payments truly be
as of 2019 the average American pays eight thousand thirty-seven dollars in
interest per year now some of this interest is reasonable such as paying
the interest on your mortgage or student loans but many other forms of interest
can be easily avoided and can unlock cash that you can use to invest and
ultimately grow your wealth the first step in eliminating debt is to realize
why you have debt in the first place and this is especially important when it
comes to credit card debt I believe if you don't understand where your problem
with debt stems from then it will be hard to make a positive change ask
yourself am i spending to deal with my emotions or am i trying to show off to
my peers by finding the root cause of your debt issues you can take action and
eliminate any bad habits you may have built up over time after you realize why
you were in debt or why you keep going back into debt the next step is to
figure out how you will eliminate it there are many different ways to attack
your debt and I think you are the most successful when you do the following
five things number one quit adding more debt to your life you may want to cancel
or freeze your credit cards think harder before each purchase and avoid spending
temptations like them all number two be realistic with your income and spending
if you have debt then you either have an income or spending problem you may need
to start earning more money and starting to spend less if you want to learn how
to become wealthy number three decrease your spending and expenses
depending on how quickly you want to get rid of your debt there are different
things that you may want to cut out you could cut out Starbucks Lori your
restaurant spending or find a cheaper way to work out number four make more
money by earning more money you will have more money to pay off your debt
which speeds up the debt elimination process number five pay more than the
minimum if you have that you should always be paying more than the minimum
so that you can lower the amount you are paying towards interest ultimately
paying off your debt will lessen your stress levels and will allow you to have
money to put towards something more worthwhile like investing when making
changes to your current financial lifestyle maintain your momentum by
imagining how much more money you will have to put towards your goals when you
stop paying high interest fees step number six start investing up until now
all the previous steps have set the foundation for becoming rich while
earning a low salary but it's a power of investing that will ultimately allow you
to accrue the funds will make you a millionaire you see as someone earning
just a moderate-sized income the strategy of collecting your paychecks
and saving them until you have a seven-figure balance in the bank it's
just not gonna work for instance if you were earning $40,000 a year and save
five thousand dollars it would take you two hundred years to save up a million
dollars and that's before installation of roads the value of your money
therefore as you can see the only way you can build wealth on a low income is
to invest investing works so well in the creation of wealth because it relies
upon what's called compound interest compound interest is when your interest
is earning interest and this can turn the amount of money you have saved into
a much larger amount years later this is important to note because $100 today
will not be worth $100 in the future if you let it just sit under a mattress or
in a checking account however if you invest then you can actually turn your
hundred dollars into something more when you invest your money is working for you
and hopefully burning you income for example let's say you're 22 years old
and earn $40,000 a year if you can allocate just over 20% of your bi-weekly
paychecks for investing assuming you realize a 6% return you will be able to
amass two million dollars by the age of 67 now that you realize just how
powerful investing can be here some easy steps you can take to embark on your own
invest jurnee first set aside your money
specifically for investing in order to invest your money you need to start
setting aside money specifically for it the amount of money is safe for
investing is entirely up to you but in general the more the better second do
your research before you start dumping your money into the stock market and
other investments it's a good idea to know what you're putting your money
towards reading about various investment related tips and researching each
investment will help you become more informed about your investing decisions
which will then help you make better decisions well into the future
third find an online brokerage or someone to manage your investments there
are two main ways to invest your money you can either invest your money
yourself to a brokerage or you can find someone to manage your investment
portfolio for you you will need to take part in one of these options to actually
start investing your money next determine how you will invest your money
now that you've opened an investment account you will want to decide where
you will put your investments how you invest depends on your risk tolerance
the time period for which you are investing and more generally the sooner
you need your funds the less risks you will take on whereas the longer your
time period is the more risk you may be willing to take on then you should track
your investment portfolio the next step when learning how to get rich by
investing is to regularly track the things you have invested in this is
important because you may eventually have to change what you were invested in
put more money towards your investments and so on finally be consistent as
you've seen in the previously mentioned example leveraging the power investing
to become rich takes years of consistent effort but as shown the payoffs are well
worth it step number seven supplement your salary as I've now proven it is
entirely possible to become rich while earning a low salary however it will
take a significant amount of time luckily for those who are not the most
patient of people there are ways to speed up your journey to riches and one
way to do this is by supplementing your income this could come in the form of
picking up a part-time job doing freelance work or starting your own
business as long as the income or into these money-making endeavors are used to
pay down debt or supplement your investing efforts increasing your income
will shorten the time horizon on your path to achieving true wealth thanks for
watching if you want to go from the life you have to the life you deserve
then hit the subscribe button now