Want To Get Rich? Do These 4 Things.

What you do with your money right now is so important if you want to become rich. But why? Well, the world is on shaky ground, with a wealth bubble set to pop, an energy crisis in the works, and a looming threat of recession. It seems like all hope is lost. Well, not quite. However, millennials are running out of time to build wealth.

It’s no surprise that American household debt just hit a record high of over $16 trillion, and credit card balances increased by $46 billion in the second quarter of 2022. I completely get that the current situation has left some people in dire circumstances, and sometimes debt is the only logical solution. That’s why today, I’m going to be running through the four things you should be doing with your money right now. And they might not be quite what you think.

Step 1: Humble Yourself

Hi guys, it’s Mark. So 72% of US adults now use social media, so it’s no surprise that a lot of people waste time and money trying to keep up with the Joneses. This means striving to achieve or own as much as the people around you. When it comes to pushing yourself to achieve more, this isn’t a bad thing. However, when it comes to stretching your budget to buy things you don’t need, it’s a big problem.

In reality, luxury goods are often purchased to increase self-esteem and provide a sense of belonging that often isn’t found elsewhere. Trying to keep up with the Joneses with excess spending and credit card debt is a bad move.

When I was much younger, the way I was able to beat my family and friends was actually by doing the polar opposite to them. Instead of buying things I couldn’t afford to impress people on the street that I didn’t even like, I began to think about the kind of future I wanted for myself and my family. This led me to making the minimum payments every month on all my debt. And then using any extra money to pay off the debt with the highest interest rate. This is now commonly known as the Debt Avalanche Method. This is proven to be one of the most efficient ways to clear debt fast. Give it a try if you’re struggling with debt. I always found it beneficial to gamify things by striving to beat targets. Ripping the debt chain off your neck allows you to think freely and move on to the fun part: saving money and growing your net worth. Because after all, money makes money.

I’d like to set you a fun, small challenge that, if completed correctly, will open your eyes to the power of saving money and compounding. Today, save one penny in a piggy bank. I know it doesn’t sound like much, but stick with me. Tomorrow, save two. On the third day, save three. We’re really building up the cash here. But seriously, keep increasing your saving amount daily by one penny. And at the end of the year, you will have over $650 saved up. All starting from one simple penny.

If you don’t actually want to use a piggy bank, then you can use one of those apps that round up your purchases, then saves the difference for you. If you can afford more, then of course this is great. While doing this, it’s important not to inflate your lifestyle.

I actually recently had a guy called Hugh on my podcast Strike It Big, who lived on $10k per year while still paying a mortgage.

Hugh’s Experience:

• Sold his car and biked 2.5 miles every day to work.
• Made packed lunches every day and didn’t buy new clothes unless absolutely necessary.
• Goal was financial independence by age 40, achieved by getting expenses down.
• He believed the key was recognizing you can only save so much, but there isn’t a limit to how much you can earn.

Step 2: Spend Strategically

Now this might sound like the opposite to what a lot of people tell you, but usually, when you go against the crowd, you end up achieving far more than the average person. It seems like there’s a theme appearing in this video.

When I was younger, my dad would always stress to me the importance of saving as much money as I could in my bank account. However, this is playing into exactly what the banks want you to do. Here’s why.

Throughout the years, the most influential companies of each generation have been in different fields. At the moment, six out of the top ten companies in the world are in the tech sector. However, as these industries shift in popularity, one thing remains constant: the banking system. But how do banks consistently manage to stay on top, grow their power over the years, and build bigger and bigger skyscrapers?

Well, an economist named Richard Werner had the same question. He gained access to the back end of the banking system and did an experiment. The aim of his test was to monitor where exactly the money was coming from. Surprisingly, it didn’t come from the bank’s deposits, nor did it come from the reserves. It effectively just appeared from thin air, backed only by an IOU note. And he states, this is where 97% of money comes from.

Debt creation on a massive scale like this is only possible because of the millions of people that save the majority of their money. Therefore, by doing this, you’re just helping more bankers get rich. Of course, I believe you should have at least an emergency fund of three to five months of your living expenses. However, once you’ve done that, you should be focusing on using the money to increase your earning potential.

You’re paid in direct proportion to how much value you bring to the marketplace. Therefore, your main aim should be to increase this value so you have even more cash to play with.

Think of it like leveling up your character. Instead of just saving useless gems in your game vault.

My son Curtis started his business as a videographer. However, continually spent his money strategically to learn new skills. Quickly, he bought more cameras that allowed him to increase his day rate from $200 to $300. Next, he gained a drone commercial license that allowed him to start charging $500 per day. And now, after learning copywriting, editing, presenting, social media, branding, and leadership, he’s charged up to $10,000 per day.

No matter what job or business you have, there is always a way to spend your money strategically to level up your earning potential.

But we need to discuss how to spot the good investments from the bad ones. But first, I’d like to thank today’s sponsor, public.com. Public is an investing platform with a strong focus on helping you be a better and smarter investor. On Public, you can invest in thousands of stocks, ETFs, and even 30 different cryptocurrencies. The best part for the first time ever, not only can you build a portfolio that features stocks and crypto, you can also soon add blue-chip NFTs, like a CryptoPunk or a pair of game-worn Michael Jordan sneakers. Overall, Public is a great app that I trust. And for a limited time, when you sign up at public.com/mark, you’ll get up to $10,000 when you transfer your account from another brokerage, depending on the transfer amount. See additional terms and conditions of this offer by following the link in the description.

Step 3: Develop Your Spidey Sense

You know how Spider-Man has the ability to know when something bad is about to happen? You need to be like this with your money. There are so many sharks out there looking to scam you out of your hard-earned cash. During the crypto rally, I unfortunately saw so many 18- to 20-year-olds YOLO their life savings into scam coins. This is so disappointing, as it isn’t just about the money they lost. It is also about the opportunity cost involved with throwing that money away.

There is a phrase that making your first $10k is the hardest. And that is often very true, as you’re able to leverage that $10k to earn even more. Everything is easier once you have momentum. However, when you lose a lot on a scam or a bad crypto coin, it can completely halt that progression.

There are three main things I look out for when I’m unsure about something:

1. Does it sound too good to be true? I took one look at many of the crypto lending platforms and wouldn’t touch them. This is because they were offering eye-watering amounts of interest, and it just wasn’t sustainable. This was a good decision as many of these companies are now bankrupt, like Celsius and Voyager.
2. Is the utility of the investment obvious? When I look at most NFTs, I can’t see any obvious uses for the product. This is because during a bull market, most people are buying them in the hope that they will increase in value, so they can sell them later on and make a nice profit. This means that it is only a matter of time before the asset crashes in value. And unless you want a very stressful life of checking your investments on the daily, then I’d steer clear.
3. Are you being driven by your brain or emotions? This one is hard to identify, as it is very common for people to convince themselves that they’re making a logical choice. However, often, it’s just a way to justify their emotions. Many scammers and hardcore salesmen rely on this by pushing certain mental triggers to make you buy whatever they’re selling. A lot of the time, it’s digital products. Most of these online courses can often be useful. However, before making any big purchase decisions, it’s a good idea to wait seven days to see if you still want it. This tricks your brain into giving you the dopamine hit and allows you to think far more clearly about your purchases.

Step 4: Build Your Empire

Becoming a millionaire is a lot like rolling a snowball down the hill and watching it gain momentum. In my early 20s, I had a house worth $150,000, a flat worth $46k, a business with $116k worth of stock that was all paid off, and $100k in cash. My business was also turning over half a million. And I could have easily sold it for $300,000. I know this because I had suppliers that would have purchased it instantly, as they were expanding like crazy.

When you have an abundance of cash, many opportunities open up and accelerate the snowball. At this point, you no longer need the majority of your money for increasing the value you offer to the marketplace. This is because of the rule of diminishing returns. When you first start investing in your skill set, even small amounts make a huge difference. However, once you get to a certain stage, it becomes increasingly more expensive for marginal gain.

Now lots of people will say that you can become financially free from property investing, which can be true. However, to do this effectively, you would almost have to treat it like it’s its own business. It’s then no longer the passive investment it was promised to be.

Therefore, in my opinion, you should firstly build up a liquid asset portfolio. I’m talking blue-chip stocks and crypto. Recently, I heard someone say that if you can’t write a check for $1 million within the next couple of days, then you aren’t actually a real millionaire. This is a good way to look at it. As there are so many millionaires that have their net worth tied up in their family home and never get to benefit from it.

I built a sizable stock portfolio rapidly. And then reinvested the cash flow into more stocks and finally investment properties. Now I’m getting a bit older, I’m so glad that I have those investments that bring me in money without me having to even think about them. My stock portfolio is mostly made up of index funds with quite a bias towards the American market through the S&P 500. This has served me unbelievably well over the years.

If you just take one thing from today, then it should be, never lock your baby money away. As you won’t reach the major leagues. Let it play so your wealth journey can get underway.