Introduction

In this post, I will be discussing “How to Get Money Fast” and the myths about it. I will also share some tips on how to build your wealth steadily.

NOTE! Nothing here is financial advice.

Myths About How to Get Money Fast

First and foremost I want to clear some of the myths about how to get money fast.

Number #1: Make money overnight

Many people that they can make money overnight. Well, I would like you to clear that kind of thinking out of your mind unless you want to gamble. There’s no such thing that you can make a million dollars overnight unless it’s gambling or some other action that is illegal. Usually, that kind of money can only be achieved with illegal means unless you have legal business, stock market position or you make money only but even those things require some time. But you should never even get closer to any illegal means.

So before we move on, I highly recommend removing this kind of mindset from you, because it is not sensible to even try to achieve, you will only stress yourself and bring more burden.

I remember when I was one day listening to Jim Rohn’s lecture on YouTube about how his teacher taught him a good lesson about making his first million dollars. He told him “When you set a goal to achieve your first million dollars, it’s not the point that you have gained such amount, but the point is what you become to achieve that one million dollar.” That clicked on my head immediately and started to change my thinking.

Think about that for a moment and reflect on it.

Number #2: It takes ages to build wealth

It takes time to build wealth but not ages. It all depends on your goals what you want to achieve and how much.

All you need to do is clear good plan, not any plan, but a good plan, that is well created and then executed. When you build wealth you will always have some risks and face difficulties during your journey but that’s normal. Life is not meant to be easy and from difficulties, we learn and grow.

So also clear this thought from your mindset, that it would take ages to build wealth. You can make money quite easily if you know what you are doing, and know how to lower your risks.

Number #3: I can’t build wealth

This is another myth that should be also cleared from your mindset. Any person can build wealth, for some it’s going to be more difficult and for some, it’s going to be easier. The reason behind this is because of the environment they live. For example, a person who lives in the US can have better opportunities than a person who lives in the EU or a third-world country. Why? For example in the US you have great business opportunities, the market is there much bigger, and more money is being used than in any other place in the world.

How to Build Your Wealth Steadily Tips

Now that we have cleared some of the myths away, now comes the fun part. Here I will share with you some tips you can use to build your wealth.

Tip #1: First source of income

Source of income job salary
Source of income job salary

Before you start to build any wealth you need a source of income that you can use to build the foundation blocks of your wealth. Usually, this first source of income is a job and that’s what I also recommend doing. Looking for a job that pays you enough to have some savings too is mandatory. Enough salary to pay all your necessities and bills and without any savings can’t get you anywhere when it comes to building wealth.

So the essential and first step is to get a job that pays you enough salary to have some savings too.

Tip #2: Save money from your source of income

Let’s assume you have a job and now you are also able to save some money. What I recommend is to save that money as long as you have a clear plan on how you are going to build wealth.

First of all, you need to do some research about what different wealth-building options you have. Let me share with you now one of them:

  1. Save money
  2. Establish an emergency fund of 3-6 months worth
  3. Pay off your debts
  4. Build your wealth
  5. Save for retirement

That’s one of the simplest plans you can have and is also easy to implement. The earlier you start the better.

Tip #3: Establish an emergency fund

One of the most important steps when it comes to building wealth is to create an emergency fund.

What is an emergency fund?

An emergency fund is money savings that you can use to cover your living for a specific amount of months to survive, or it can be used for unexpected events in life where you need money. For example, you might lose your job at some point or God forbid something bad happens to you or your family and you need money to cover or solve the issue.

A good rule of thumb for the amount of an emergency fund is usually 3-6 months’ worth of covering. I like to extend that later up to 12 months.

The reason why it is very important to create an emergency fund as your second step is because life can be very surprising and you need to have a good cushion for your finances. This emergency fund will provide such a thing, so you don’t have to worry if something unexpected happens. You have your emergency fund ready.

An emergency fund should not be used for anything else, not for investing, not for buying a car (unless it’s essential), not for gambling obviously, and so on.

Another good rule of thumb is that once you have an emergency fund worth 3-6 months, it’s a good idea to extend it up to 12 months just like I stated above. Now the question is when this should be done?

In my opinion, it should be done once you start to make more money or your investment has grown enough to be good that you are able easily to save for it from your savings or maybe sell a portion of your investment for it. It’s very difficult to say what “investment has grown enough to be good” because this is case by case.

Tip #4: Pay off your debts with this awesome strategy

Pay debts off
Pay debts off

Now that you have your emergency fund created the next thing is to get rid of the debts.

At this point, you have two options:

  1. Allocate your savings to pay the debt off faster
  2. Allocate your savings in a such manner that XX% goes for paying the debt faster and the rest of the XX% will go for investing or for a business that you want to create

But one thing for sure that I highly recommend doing is to try to pay the debts off faster. This way you will have less burden and you get rid of all debts that you have and on top of that you will save much more money that you can use for your retirement savings or even investing. What you wish to do with your savings, it’s up to you.

How you should pay off your debts?

I recommend using the snowball effect. What this means shortly is that you pay first your smallest debt off, then take it monthly portion and add it to the next small debt that you are paying, then the next, and so on. So this is creating a snowball effect.

Here’s a quick example. You have debts A, B, and C. For A you pay $100/month, for B $150/month, for C $350/month. First, you pay off your debt A, once it’s done then you add that $100/month to debt B’s monthly payment, then it would be $250/month for debt B, then once it’s paid then you take that portion to debt C, which will make it $600/month to pay it. This will pay all your debt quite fast.

The only exception that would take much longer time to pay is the mortgage because usually, it’s the biggest one.

I have covered “how to pay debts off fast” in this post. You can check it, there’s another strategy beside of the snowball effect that might be useful in your case.

Tip #5: A strategy to allocate your savings

Now let’s discuss a bit about how you should allocate your savings. You have different options:

  1. Allocate your savings based on your build-wealth plan
  2. Allocate your savings in a such manner that money goes for an emergency fund, paying debts off and investing at the same time
  3. Allocate your savings for investing and once they have grown enough then you will create your emergency fund and pay off all your debts (not recommended)

Let’s discuss quickly about two latter points.

Allocating savings at the same time

When it comes to allocating savings at the same time it’s a feasible option when you have gained enough experience in your field and you are sure that you can get easily a job in your field even if you get fired. The reason why I point this out is because of the importance of building an emergency fund as soon as possible.

For example, one good way of allocating savings is the following:

  1. 50% for an emergency fund
  2. 25% for paying debts faster
  3. 25% for building wealth (investing, building own mini business, etc.)

The reason why that kind of allocation is good is because you save most of the money first for an emergency fund. Once you have saved enough for your emergency fund then you can change the allocation for example to the following:

  1. 50% for paying debts faster
  2. 50% for building wealth

You can of course adjust your percentages based on your state and needs. If you are interested in paying debts off more than building wealth at that moment then I highly recommend using a bigger percentage for paying the debts off.

Allocating savings only for investments

If you plan to go with this route, be prepared. The reason why I say so is because if you have put all your savings into investments, whether it’s stock market or business, you can lose them in one or few days. This is why I don’t recommend allocating your savings in this way.

Now imagine you have allocated all your hard-earned money into the stock market and then a stock market crash happens in 1-7 days. You are going to lose a lot of money, but usually, they tend to recover, or you have a business built and then suddenly you don’t make any more money from it, because people have lost interest in such industry, or for God forbid your business gets destroyed by fire or any natural event or anything like that. Doesn’t that hurt or piss you off?

Now let’s imagine you are okay with it and that you can handle the situation, but what would happen if you just needed so badly money to survive at that moment and you don’t have any dime in savings? This is the reason why this route is quite dangerous especially if you don’t have an emergency fund created and lots of debts to pay.

This route could only make sense once you have an emergency fund created, paid all debts, and have saved some amount of money for retirement as well and you are a long-term investor or you like to take risks when building your business.

Tip #6: Building other income streams to build your wealth

Now that you have an emergency fund and let’s assume you have also paid off your debts except your mortgage or you might have some small debts to pay off, then this is a good time to start building your wealth by building not only one income stream but several.

The reason behind it is that if one income stream fails you have others that are generating your income. The cool thing about building income streams is that you have so many options and you can even build them all, but not cool thing about them is that it is sometimes not easy to build them.

For example, you can build the following income streams on top of your job:

  1. YouTube channel (get paid from ads, selling products, affiliate links, etc.)
  2. Online business (sales)
  3. Affiliate business (sales)
  4. Blog (product sales, ads, etc.)
  5. AI business (SaaS)
  6. Ghostwriting
  7. Completing tasks or surveys
  8. Building and selling websites
  9. Buying and selling domains
  10. Tester
  11. Selling game
  12. Selling service
  13. Amazon KDP
  14. Selling on Amazon
  15. Stock market
  16. Crypto market
  17. And much more…

As you can see you have lots of options to choose from. You can build even them all but it requires lots of time because you need to learn them.

What I usually recommend is to build one income stream at a time, manage it, and try to automate it so that it doesn’t involve you doing much of the work and analyzing it. What you can do better about it or shortly said optimize it. Once it starts to generate steady money flow then keep it as it is and then jump to the next one.

Unfortunately, I will not write here on how to build some income stream because it will bloat this post much bigger, but maybe I might consider in future to provide such a post.

Tip #7: Save for retirement

Save money for retirement
Save money for retirement

Let’s assume that you have now built your income streams and you generate some money, it’s a good idea to pay yourself from that nicely generated money and one good part of it is to use that money for saving for retirement.

I don’t honestly rely so much on the retirement pension because I know anything can happen to it and it will be small if you have not worked enough to pay retirement from your salary. Different countries have different rules.

This is why it’s a good idea to save money for retirement just in case. Now the question you might ask is how much I should save for my retirement.

My rule is following:

  1. Ask yourself “What kind of lifestyle do I want to live when I retire?” Do you want to be able to travel around the world? Do you want to live a luxurious lifestyle? Or is it simple life enough for you?
  2. Once you know the answer, then ask yourself “How much do I need for such kind of lifestyle?“. Let’s suppose you ended up with a number of $4000/month.
  3. Now take that number and multiply it by (100 – your age when you plan to retire) * 12 months. Let’s assume that you want to retire at the age of 65. Then it means (100 – 65) * 12 * $4000 = $1 680 000. That’s the amount of money you need to save for your retirement. This is only based on how much you need to save money.

If let’s say you get a retirement pension on top of that, then obviously you can save less money because you can minus the pension part from the $4000/month. So for example, if you get a retirement pension of $2500/month, then all you need is to save $1500/month. But, you need to remember that in some countries they don’t pay pension till 100 years old.

Conclusion

Here you have it. I hope this post was useful on how to get money fast. We went through myths of how to get money fast, and then I gave you some good tips on personal finance and how to build wealth and gave you some examples along the road.

Did you find this post useful? Are you planning to build your wealth or implement any of the tips I gave you in this post? Please let me know by writing your comment below.

Have a great day.