All the Wealth Secrets in 3, 2, 1

Don’t make wealth harder than it is.

Establishing wealth is not hard. I’ll prove it with three concepts. The one thing that I learned early while studying Accounting, is that there is always a weed out class. That class was Cost Accounting II. The concepts came at you fast and ultimate 70% failed.

The goal of that class was to elevate the Accounting degree. Why? The less people that were able to attain it, the more mystique it would have. The best part is that those who fail became additional mouthpieces to how hard Accounting was. The harder it was, the less people applied and the more money the field could garner.

While accounting and taxation are difficult to grasp, it isn’t Impossible. The same goes for Financial literacy. Financial advisors love the fact that you don’t know or are unclear.

Most of them aren’t even advisors but glorified insurance salesmen. So let’s make you a harder target.

Secrets to Wealth in Three Steps

Seriously, I don’t care which book you read or which mastermind group you join, the formula is simple. Gain control of yourself by cutting down your expenses. Step up to make more income especially when you are younger and healthier since the future is not promised. And finally, invest the difference wherever you can. Too often people go on spending with no restriction as if we were mandated throw away money as soon as it hits the account.

If you don’t want to work forever or don’t want to live in financial stress. Fix it. If you need a visual cue look at the picture below. Don’t worry I’m a visual and auditory learner. They work for me.

Decrease your Expenses

Don’t waste your time focusing on the small fry i.e. your $15 per month Netflix account can stay. While you still need to do spring cleaning on the frivolous category, you need to level up.

You are better off targeting the big ticket items i.e. housing, transportation, and food.

While the food cost is harder to break but just remember every dollar you spend might increase your waistline while making you poor. Your transportation is a luxury vanity project. You don’t need a Mercedes. Worst part, those things are normal every day cars in Germany. They laugh at Americans since all their Mercedes are custom built. Finally, the house is were you are throwing away your life. Get a roommate if you need to. Move in with mom. Do whatever it takes to downsize your housing expenses to 25% of your after tax i.e. your paycheck.

Rough math, if you are making $60,000 pre-tax multiply by 21.25%, and divide by 12. For someone making $60k, they can only really afford $1,062.50 per month. Here’s a table for the non math wiz. Tell your friends that I didn’t leave you behind.

Salary	After Tax (-15%)	Total Housing No more than 25%
$40,000	$34,000	$708
$50,000	$42,500	$885
$60,000	$51,000	$1,063
$75,000	$63,750	$1,328
$100,000	$85,000	$1,771
$125,000	$106,250	$2,214
$250,000	$212,500	$4,427

Increase Your income

There is only so many cuts you can do to your budget until you bleed to death. At some point, you will have to work afternoons and/or weekends to make additional money to cut down credit card debt and etc.

Look it’s not all bad, you might even find something that you love more than your own job. Take the opportunity to push it to the limit. If you can get to a passive income even better. I’m not telling you to become for MLM salesperson. This is real work with steady cash and opportunities.

You can also go for promotions at work but don’t hold your breath. Seek extra income opportunities, and learn from others.

Temp work if need be. Gear up for the holiday rush. If you work retail for the holidays, you can also great the extra employee discount.

Invest the difference.

This is where it gets tricky. Investing is the most important concept in building wealth. You can either invest in your education to make even more income, in relationship to build your network, or into cash flowing assets. With the left-over money, make those dollars work for you in this order:

1. Save at least $2,500 in a Bank Savings for your own confidence and don’t touch that money. Make sure to pay the minimum on your credit cards. You’ve done enough damage
2. Looking into an employee match at work through your 401k, 403b, or 457b at work. It’s FREE money grab it and go, since your contributions also reduces your taxes.
3. Payoff extra on the credit card debt to reduce your monthly interest to save your money and time.
4. Go back and drop the max to your 401k, 403b and 457b.
5. If you start getting more money, invest in an HSA and/or IRA.

Voila. The path is now open and clear. Investment at the base level will make you a millionaire. But don’t skip on the wealth of investing in relationships, experiences, additional education and ownership. The end goal of investing is to buy back your time.

He who doesn’t not own simply rents or leases forever.

Do yourself a favor. Make your wealth Journey easy.

Don’t let the world intimidate you on your path to wealth.

It’s easier than you think, you just have to start. Every guru and financial advisor knows this one secret. You don’t really need them but you are paying them anyways whereas you can invest that money into yourself to dig you out of your own misery.

Also stick to a better plan that can make you rich in less than 15 years. In the end, all these secrets have been known for all of human history, it’s not new. You just need to act.

About Author