Can you build wealth from nothing? You would probably say, only a magician can do it! The fact is that you can build wealth, literally from nothing.
Assuming you start off from a situation where you have no money in your account and also have debts to clear; it is still possible to build wealth from such a situation.
It is not easy and will not happen overnight. It is definitely possible to do it, with hard work and a systematic, disciplined approach. Let us discuss how this can be done.
1. Believe in Yourself
Self-belief is believing in your abilities and being confident about achieving success. This is extremely important. There are many strategies to create wealth from nothing, however, none of them involve luck. They all call for focused and dedicated effort and hours of toil. Without believing that you can do it, these strategies may not be useful. Be confident about your ability to put in the effort needed. Have a positive attitude that can help you when you come across obstacles. Building wealth from nothing is a tough job and you will encounter many obstacles in your way. Self-confidence and determination will help you to clear obstacles and achieve your goals.
2. The Formula to Build Wealth from Nothing
The formula for creating wealth is simple: savings (a.k.a. wealth) = income – expenses. To create wealth, you have to increase your income and reduce your expenses. But it’s not that simple because not every penny saved amounts to ‘wealth’ unless you make it so.
The trick to turning ‘savings’ into ‘wealth’ is knowing what to do with the money you save. Even if you start with no money, in a year’s time you can save some money. Once you have some savings, you have to learn how to use that money to create more money. Savings can be the starting point of your journey to create wealth. This brings us to the next section: earning money in the first place.
3. Secure a Regular Income Source
Assuming you start from scratch with nothing on hand; the first thing to do is start earning money. Get a job that can help you earn a regular monthly income. When you start off with nothing, you need a job that can help you earn money. If you wait for a job that will give you a huge income, you may have to wait for long. Start with something that will help you earn money and most importantly gain experience.
You can even work for less money or start work as an intern to learn on the job. Put in efforts on the job to learn. Work hard and perform well and the money will slowly start coming in. Hard work always yields results. When you prove yourself at work, you can get a higher salary. Once you gain experience, you can always look for another job that can help you earn more. There is no shortcut to success. You need to toil hard initially so that you can get a good income.
You need to have an in-depth knowledge of what you do in your job. If you think that you lack on any subject or topic, there are several online course academies like Udemy, which help you take online courses from industry experts for enhancing your knowledge. Further, knowing more languages gives you an edge over others in your professional career. Udemy can help you with the same.
While some soft skills are inculcated in our routine behaviors, others can be acquired by learning. Leadership skills and interpersonal skills help you excel at your workplace. Threshold Knowledge Inc provides counsel through your management and leadership problems and helps you arrive at a solution.
It can be stressful sometimes dealing with so much pressure when you are trying to manage your job along with other business alternatives. Make sure you manage your stress and inner balance by enrolling yourself in programs offered by HeartMath LLC.
If you are not employed and are running a business, then you need to work even harder. The key here is to win the confidence of customers. When you start a business, big or small, you need to earn the trust of customers. You can give something extra or added value to the customer, so they become loyal to you. Once you have loyal customers, they will do the marketing for you and bring you more business. Earning money from a business would be easy when you offer something of value to customers.
There are two things that you may follow to get customer traffic via online mode for your business.
i. Avail Website Hosting and Web Designing Services
There are limitations when you operate your business offline. If you are looking forward to expanding your existing customer base, the first thing you should focus on is creating an e-commerce store for your business. The benefit of online stores is that the customers from any corner of the world can connect with you. Also, you are able to display your entire catalog to the customers when you go online. This increases your reach to customers and brings along more revenue for you.
BigCommerce is an easy-to-use platform that helps you build an online store and gets your products online. Launching new products is very easy on this platform. Another good option is 3DCart which uses e-commerce software for SEO. It gives you access to 50 free themes to choose from.
Apart from having an online store, it is also important to have a website that introduces the world to your business. A well-designed website with an attractive domain name can do wonders in digital marketing.
Service providers like Create provide web hosting services to its users. They also help you find a domain name that suits your business name and create custom mails with the help of G-suite so that you can reach out to a larger audience.
ii. Follow Marketing Tactics and Advertise
Once you are ready with your website, it is time to reach out to the audiences and convert them into your customers. There are different ways in which you can do that and today we are going to discuss many of these ways.
It is a smart strategy to show your presence to customers by way of promotion on navigation apps, maps, local business sites, and social networks. This is because these are the tools that even the customers can easily get access to.
Email marketing is another effective tool that helps you reach the masses. Customers these days look into their mailboxes for exciting offers and deals dropped by businesses. GetResponse and AWeber are great with email marketing and help you to create custom emails with the help of amazing-looking templates. Also, you can create promotions and exciting offers, distribute them via email to potential customers, and track performance thereafter with the help of IntellaSphere.
Just like emails, SMS also has a far reach. Marketing through bulk SMS can help you target larger audiences. There are service providers like VoodooSMS which can help you create bulk SMS.
If you have significant stories about your businesses that can form part of online media, blogs or print media then you can avail services of 24-7PressRelease or eReleases as they will assist you to disseminate your news to various platforms like journalists, print media, bloggers as well as online media.
Engaging videos attract customers and they connect to your business. If you have interesting texts and blog posts you can convert them into interesting videos with the help of AI-powered video creation platforms like Lumen5.
You can also consider creating attractive banners with effective templates like those provided by BannerBuzz so as to show your business presence. Also these days many businesses opt to promote their businesses through custom designs printed on various products as simple as boxes. If you are also looking for such a service provider that can help you design custom printed boxes for your business, you can reach out to BoxUp.
4. Invest in Yourself so that Your Career Takes Off
If you want to increase your income, you should be a valuable asset for your employer. That will happen with self-improvement. Before you invest money to gain wealth, you need to first invest in yourself. Invest money and time to do these things:
- Acquire an additional qualification. Join a night school or a distance education program, where you can get an additional degree or diploma that will help you in your career.
- Learn skills. Apart from qualification, you need skills that help you excel at work. You can get skills by investing in training. Thanks to the growth of online training, you can undergo the training online in your free time.
- Get certified! For some jobs, you may need to be certified or clear certain tests. This will help in accelerating your career growth. Take a look at the various options available on Udemy.
- Improve your personality. You can use the help of a coach or mentor to improve your overall personality. Good communication skills, a pleasant personality, and a confident approach can help you impress your superiors and customers.
When you invest in yourself, you are creating an opportunity to grow in your career. The more the effort you put in, the higher would be your career growth. This would also help you earn more.
5. Try to Earn Additional Income
When you have too many expenses or debts, then whatever you earn may not be sufficient. In such a situation, you need to try to earn an additional income. Apart from the job where you work or the business you run; you need to find options to earn extra money. You can consider taking up a part-time job in the evenings or nights so that you can earn more. You can also look at a freelance job that can help you earn money in your free time. The growth of the internet has opened up job opportunities online. There are many ways in which you can spend your spare time doing something productive so you can earn money. Here are some ideas:
i. Content Creation
One of the best things you can do if you have a hobby is to turn it into an income source. That way you get to do what you enjoy and also get paid for it! If you want to know how to build wealth through this, the first step is to showcase your talents. Creating a website of your own is the most effective way to do that. Figure out what kind of content you want to create and head over to Kinsta to set up your own managed WordPress website. It is a super easy process, you will have help the whole time. Plus, you won’t even need to get into the nitty-gritty of setting up your website if you don’t want to.
The most popular hobbies you can monetise are writing, video creation, graphic design, photography, and fine art. In the next few points, we will give you ideas that you can perhaps also use for other hobbies.
ii. Get Freelance Gigs
You can find any number of freelance gigs for writers, designers, voiceover artists, photographers, and various others on Fiverr. It’s very easy to sign up and set up your account on Fiverr. Once you’re all set, you have to put some offers in place and start bidding on available gigs. Make use of the Fiverr Forums to learn how to market yourself better and increase your chances of getting gigs. You can use your Kinsta website to showcase your work. This is an incredibly easy way of creating wealth from nothing.
You can start pouring your heart out and share the work with the world on your own website via Kinsta. This could be done via any form of art: writing, photography, designing — anything you like. If you market your blog well, you can become an influencer. Becoming an influential blogger opens avenues like affiliate marketing, authority blogging, paid reviewing, and the likes.
You can make videos of yourself doing things that interest you and put them up on social media platforms across the board. Figure out what you like doing on video and then identify the right platform for that kind of content. Getting the platform right is pretty important so make sure you read up on this before you start out. Once this process becomes familiar, you’ll be on your way to building wealth from nothing.
6. Be Debt Free
One of the major obstacles in wealth creation is debts. The loans you have taken are an obstacle in your road to becoming wealthy. Your top priority must be to clear all your debts. Once you put in effort and start earning well, use this money wisely. Clear your debts, so that you can stop paying interest. Clearing debts helps you save more money and that will help you in your quest to create wealth. Don’t worry even if you have a lot of debts, a disciplined approach can help you clear them and start afresh.
7. Cut Expenses to Save More
One of the most important and difficult things to do is to cut expenses. The money you earn would be spent on taking care of your needs and wants. What you save is the difference between your earnings and expenses. As a thumb rule, one needs to save at least 15-20% of their income. However, if you are trying to create wealth from nothing, this is not enough. You may need to save at least 50% of your earnings so that you can have money in the bank that you can invest. The best way to do this is to drastically cut down your expenses. It’s tough, but not impossible.
List out all your essential expenses, like house rent/mortgage payment, clothing, transport, grocery, expenses on children, etc. These are your needs; they are essential you cannot do without them. It doesn’t mean that you can’t reduce these expenses. Here’s how it can be done:
- Try to move to a smaller home so you can save on rental expenses.
- Cut down on the expensive clothing. When you want to build wealth for your future, you need to be prepared for a few sacrifices.
- Get a cheaper vehicle, maybe a used one. You can even consider using public transport until you are financially strong to be able to afford a car.
- Look for discount shopping options, where you can save on grocery bills.
Once you take care of your needs, next come the wants. These are things you have to sacrifice if you are starting with nothing. You don’t need an iPhone when you can do the job with any smartphone. Similarly, with everything being online, do you need to spend money for a huge TV with cable? You can cut down visits to the cinemas and fancy restaurants to save money. All this is definitely tough, but the sacrifices you make for the initial few years will help you build wealth that you can enjoy later.
Cutting down your expenses will help you save more money. Make sure you use your credit cards wisely. Pay off the entire balance to avoid paying high interests. Look for a card that gives you low-interest credit and allows you benefits like reward points. You can encash these reward points to buy fuel and groceries.
8. Start Investing and Do It Wisely
Once you have done all the hard work, earned money, scrimped on expenses and cleared your debts; you would have started saving money. Your bank account that had nothing will now have something. Now start investing your savings to build wealth. This requires careful planning and a systematic approach. Just as you worked hard to earn money, you need to put in effort to understand various investment options. This is hard-earned money; you wouldn’t want to lose it. Investing wisely is essential so that you can build wealth through the money you have saved. Here is how you can go about doing it:
- The stock market is the one option that allows you to earn big from your savings. The stock market has its risks, but when you stay invested for a long-term, you can look forward to earning good returns. You can become a millionaire in 30 years if you invest 1000 every month in the stock market. If you can increase this amount to 6000, then you can accumulate a million in 10 years. This doesn’t mean that you invest everything in the stock market. Remember there is a risk involved, so don’t invest all that you have. You can have a systematic investment plan, where you invest a sum of money every month to buy stocks. Diversify your stock purchases by buying stocks from different types of companies. If needed take the help of an investment advisor. If you are not comfortable buying stocks, then you can invest in a mutual fund. A professional fund manager would handle your money and use it to invest in stocks. The performance of the mutual fund can help you earn good returns. It has a lesser risk than directly investing in stocks.
- Invest money in safe investment options like bonds, securities, and bank deposits. You will earn lesser interest than you would in the stock market, but your capital amount is safe. A thumb rule is that you should invest a percent of your investments equal to your age in debt and the rest in equity (stock market or mutual funds). If you are 30 years old, invest 30% in debt and the remaining in equity. When you turn 40, reduce your equity investment by 10% and shift it to safer options.
- Make sure you follow a disciplined approach to investing. Invest regularly and invest every month. Don’t panic when the stock market crashes. What goes down will come up. Stay invested for a long term and you will definitely accumulate wealth. But you need to keep reviewing your investments. In case the company or mutual fund you have invested in doesn’t have good prospects, you can sell it and invest in something else. You need to do research and learn about the market.
- Real estate is yet another option to earn money. You would have an asset and can earn rent on it and sell it when its value goes up. Whether you invest in real estate or the stock market, do it only if you understand the market.
- Don’t empty your bank account when you start investing, keep three months of expenses as an emergency fund, you never know when you may need it.
- Investing in real estate directly can take up a lot of funds and that is why you can also opt for investing in units of Real Estate Investment Funds (REITs). These funds directly own and manage the properties and the income that they generate on the properties is distributed amongst the unitholders.
- Cryptocurrencies are a good investment option as it can help you yield high returns. If you are a trader and know about investing in crypto assets then you can utilize the platform of BlockFi that helps you manage your crypto assets and earn interest on your crypto account. But if you are a beginner then you may use trading software like BTC Loophole or Bitcoin Traders that automate the trading process for you to yield profits.
- Currency trading is yet another lucrative investment product that is opted by traders for building wealth. In forex trading, it is important to develop an effective strategy that can help you achieve profits in the long run. If you want to know more about forex trading strategies, you can avail courses provided by ForexMentor that will help you understand the long-term trading approach.
- If you understand stock markets, you may head towards day trading as well. Before you carry out your first trade, make sure you research well and learn about day trading strategies. While Top Dog Trading and Algo Signals help you improve your trading skills by providing you useful trading lessons, Motley Fool helps you stay updated with market news and stock updates. If you are looking for a trading platform where you can carry out your trades, you may head towards EasyMarkets or invest using platforms such as Public.
Hard work, patience, and a commonsense approach can help you become rich even if you start from scratch.