How Poor People Can Get Rich
Did you know 88% of millionaires are self-made? They didn’t inherit their fortune, but built it themselves over time. The methods they use are available to anyone and everyone, even if you’re “poor”.
When I first moved out of my parents house I only made minimum wage, and I already had student loans to help cover my first year of college. But there’s a neat little trick I learned to start building wealth, even if you don’t make very much money.
No, it’s not a get-rich-quick scam or a Ponzi scheme. It’s actually just one simple thing you can do to get rich. The best part is you can actually just keep doing exactly what you’re already doing. You don’t have to pinch pennies or gamble on #dogecoin. It’s quite simple.
This secret to getting rich only takes one simple step. It will only take a couple minutes of your time, but make major contributions to your financial future and your Financial Liberty.
The Simple Step – How Poor People Get Rich
The next time you get a pay raise… Do nothing.
I mean it. Absolutely NOTHING.
Okay, well… One thing.
- When your next paycheck hits your account, take the difference (as compared to your paycheck before the raise) and invest it.
What I mean by “do nothing” is don’t go out and buy a new car or or a bigger house just because you got a pay raise. You’ve already proven to yourself that you can live on your previous income. So just keep on keepin’ on, and invest the difference.
The simplest way to do this is by setting up an automatic transfer into an investment account, such as an IRA. If your take-home pay was $1,500 before, but your new take-home pay is $1,600 after a raise, then setup an automatic transfer for $100 every payday.
It might not sound like much, but it really adds up.
Say you currently make $14/hour working 40 hours per week. After a year, you get a pay raise to $16/hour. The extra 2 bucks an hour will be an additional $80 per week, or $4,160 per year. It may not sound like a lot right now, but over time this can make you rich.
Investing $4,160 per year at a roughly average 8% return would be $60,000 after 10 years and almost $200,000 after 20 years.
You might say “Oh, but I really need [something probably not actually necessary]. Now I can afford it!” However, you have proven to yourself over the last year that you can live on $14/hour. So do you really need it? You can avoid lifestyle creep and start building wealth now.
Just a $2 per hour raise can become $200,000 of wealth!