How you can build a fortune with $2000 to have more freedom and more security in the
future or to fulfill your personal financial desires.
How you can achieve this, I will show you in today's video.
Because wealth can be achieved even with a normal income, if you divide it properly and
this is possible without neglecting certain areas in life.
About 3 years ago I helped a friend who had $20,000 in debt and showed him the division
that I'm showing you today and after 3 years not only were his debts gone, but he had also
built up a 5 figure investment portfolio in the meantime.
How he did it and how you can do it too, you can find out right now!
But before we get to the main topic of the video, first of all welcome back and if you
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But first of all, why do people fail to build wealth in the first place?
After years of research and personal education through books, coachings and mentorings in
the area of money, investing and wealth building, 3 main reasons for failure emerged.
The first reason is lack of clarity.
By clarity I mean on the one hand that many don't really know why they want to build wealth
and on the other hand don't really know where they want to go i.e. financially.
This means that before you even think about how to build wealth, you should think about
what your goal is.
A ship must also know its destination in order to be able to cross the ocean.
So first of all think about how much money you want to have in the end and why you want
to have it.
For example, do you want to travel more or spend more time with your family?
Do you want to be secure in your old age?
Do you want to retire earlier?
No matter what your why is, it's important to know it.
The 2nd reason then is that most don't have a plan on how to get to their goal.
They don't think about how to get there or they just don't know any better themselves.
And if you don't have a plan, you don't get there and if you don't get there, in 5 years
you'll still be exactly where you were 5 years ago.
So that this doesn't happen to you, you should definitely watch the video to the end so that
you have a clear plan afterwards on how to reach your financial goal.
However, we need to take care of the 3rd reason first.
The 3rd reason is the lack of continuity or discipline to follow through with the plan
in the long run.
Now this does not only refer to wealth building, but to every area of life.
It can be compared to the gym, where everyone goes at the beginning of the year highly motivated
and in March you see no one anymore.
This is also the reason why discipline is more important than motivation, because discipline
takes you to places where motivation could never take you.
How do you build more discipline?
Through fixed routines and what those are for wealth building , you will also learn
later in the video.
Now let's look at the exact breakdown of how you can build wealth with $2000.
The easiest way to build wealth is to divide your monthly income into specific areas on
a percentage basis.
Why is this the easiest way?
This makes wealth accumulation predictable and can even be automated once the division
is set up.
So what exactly does the division look like and what details are to be considered in the
areas?
50% fix costs
The first point is the fixed costs, i.e. the costs that are debited every month or that
are fixed.
This also includes insurances that are only debited once a year.
Now if you earn $2000 a month, then $1000 goes for, for example, rent costs or home
loan installment Water and electricity (possibly gas if you
cook with a gas stove) Heating (gas, oil, pellets, wood - the easiest
way is to divide the annual total by twelve months)
Insurances Taxes and fees (for example garbage)
Mobility costs: bus or train ticket, car or bike insurance, parking space rental, gasoline,
car tax, leasing costs, motorcycle costs Media: internet and telephone connection,
cell phone, streaming services, pay TV and Food.
You're probably thinking to yourself now that $1000 can't do it and 50% is way too little
for fixed costs.
To that, my mentor used to say, "If you can't live on 50-55%, simplify your lifestyle.
Wealthy people think long term."
5% Education This means, for example, buying books or courses
that will help you professionally or personally.
This is also a big point in wealth building, because through further education, especially
in the professional field, you create more added value for your employer, which is why
it will be easier for you to achieve a salary increase later, which again helps you build
wealth.
15% Investments 15% goes to investments or what I call the
"Financial Freedom Account".
This account is used exclusively for asset accumulation, i.e. for investments in stocks,
commodities, ETF's, real estate or even in side hustles, which in turn can create a higher
income for you.
This account may never be used for any other purpose.
10% Retirement provision 10% goes to your retirement plan so is used
as a reserve for your pension.
Far too few start early enough to take care of their pension.
Many rely on the state, however, in my opinion, the times are over and everyone should take
personal responsibility for his future and do something for his pension, so that you
are secured in old age and can enjoy your life without having financial worries.
It is also a good idea to put the 10% into the investment area if you are investing for
the long term anyway.
15% Free Time 15% goes to the area of leisure time, such
as travel, restaurant visits and other leisure activities.
Even if we want to build wealth, we must not forget the fun in life to continue to be in
balance and enjoy on the way to your goal or to celebrate certain milestones.
5% Savings 5% again goes into saving for later expenses
such as house, car repairs, etc.
It can also be considered as an emergency fund, which you use in case of unexpected
expenses and you do not have to take on debt or sell shares of your investments to cover
the expenses.
Why saving is valued less than investing should be clear, because saving alone will not make
you rich, especially with the current inflation rates.
But what routines or habits can help you implement this plan consistently?
To really stick to this breakdown of your monthly income, it's essential that you track
your income and expenses regularly so you know if you're on track or not.
To give you a starting point, I'll tell you how I do it.
During the week, I keep a small notebook with me and list my income and expenses there,
no matter how small or how big they are.
At the end of the week, usually on Sunday, I sit down at my PC and open my tracking sheet,
which I have online at Google Docs.
If you would like to have the same tracking sheet, feel free to check out the video description
there you will find the download link.
In this tracking sheet I have also stored my budget, i.e. the breakdown that I have
each month with my monthly income and now enter my expenses and my income in the tracking
sheet and see immediately whether I am still on track or not.
Wealth accumulation does not have to be complicated, on the contrary, I am even of the opinion
that it can be very simple and it is only always presented as extremely complex.
It really only needs the things I shared with you in this video:
1.
clarity 2.
a plan, i.e. splitting your monthly income and tracking it on a weekly basis
3.
and the discipline to follow through on point 2 for a long time.
And if you want to know how you'll never have financial problems again, check out the video
to the right!
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