As an immigrant who arrived in the US with little knowledge of money, most individuals can’t believe how much my life has changed since then. I met a mentor who encouraged me to learn about money, and everything changed for me.
Watching my own journey from the bottom 10% to the top 1% was a testament to the power of understanding money and wealth.
Over the years, I have documented and saved all the valuable lessons that have helped me on my journey to creating generational wealth. These lessons are simple, yet powerful, and can make a significant difference in your financial life.
By following these principles, I have been able to build a solid foundation of financial security and create a life that I once only dreamed of.
1. Spend less than you earn 💰
Living below your means is one of the most important steps in achieving financial security. It is the foundation of wealth building. By spending less than you earn, you will have money left over to save and invest, which can help grow your wealth over time. If you spend everything you earn, you will have no money to create wealth with. If you spend more than you earn, you’ll always be behind financially.
2. You don’t need a lot to start building wealth 💸
You don't need a lot of money to start investing. Even small amounts of money invested over time can compound and grow into significant wealth. The key is to start investing as soon as possible and be consistent. I started investing with $100 by purchasing two shares of Netflix for $50 each. That is how I started to be able to eventually get to multiple 6-figure portfolios.
3. Acquire more assets (& less liabilities)
Assets are things that put money in your pocket, while liabilities take money out of your pocket. Focus on acquiring assets that grow in value or put money in your pocket. That is the secret to wealth creation. Building a portfolio of assets that generate income or appreciate in value can help you achieve financial independence and create generational wealth.
4. Focus on owning (& less on consuming)
Instead of focusing on consuming, focus on owning assets that appreciate in value. Owning a rental property or stocks that pay dividends can provide a steady stream of income and help you build wealth over time. I believe Oprah was giving us a hint with the name of her network OWN. Yes, ownership is the key.
5. Cash spends once (pay me in equity) 🐝
Cash is a necessary part of life, but it has its limitations. It can only be spent once, and it loses value over time due to inflation. Equity, on the other hand, can provide long-term growth potential. When given the option, consider taking equity in a profitable venture or partnership because it has the potential to grow, rather than a cash payout.
6. Debt isn’t bad. Depends on its use 👏🏾
Debt can be a powerful tool when used correctly. Taking out a mortgage to buy a rental property, for example, can provide a steady stream of income and build wealth over time. However, taking on high-interest credit card debt to spend on depreciating liabilities can be detrimental to your financial health. When taking on debt, always ask yourself, is this making me money or costing me money.
7. Don’t put money into anything confusing 👌🏾
Stick to investments that you understand and that have a proven track record of success. There are people who will sell you complicated financial and insurance products. They are not looking out for your best interest. The quickest way to lose money is by purchasing things you do not understand.
8. Very expensive to wait to invest 🗣️
Time is one of the most powerful tools in investing. The longer you wait to invest, you will need more money to catch up in the future. Start investing as early as possible, and let the power of compounding work in your favor.
9. Surround yourself with the right people 🫂
Surrounding yourself with the right people is crucial in achieving success in any area of life, including finance. There is a saying you are the average of the five people you spend the most time with or listen to. Be intentional about getting around the right people.
10. Your wealth can’t grow if you don’t grow 🧠
Investing in yourself and your education is essential for achieving long-term financial success. By taking courses, reading books, attending seminars, and participating in mastermind groups, you can continue to learn and grow, and acquire new skills and knowledge that can transform your life. Just like the stock market, your knowledge can compound over time, leading to improvements in your life and wealth.
11. Everything worthwhile takes time ⌚️
Building wealth is a long-term process that requires patience and discipline. Don't expect to get rich overnight, but focus on making consistent progress. This universal law of patience applies to everything worthwhile in life. Your relationship, career, health, etc.
12. Giving is the secret to receiving 💫
Giving back is not only good for the soul but can also be good for your financial well-being. Generosity attracts positive energy and can open up new opportunities for growth and success. By giving back, you create a ripple effect that can benefit not only yourself but others as well. Giving when it is initiated triggers the receiving process.
13. Diversification is how to protect wealth 🔒
Diversifying your investments across a variety of asset classes can help protect your wealth from market fluctuations and reduce your risk. Investing in a range of different assets, including stocks, bonds, real estate, crypto and commodities, can help you create a well-balanced portfolio that can weather any economic storm.
14. The stock market does not discriminate 😊
The stock market is open to anyone who is willing to invest. It doesn't matter your age, race, or gender; anyone can participate and potentially benefit from the power of the market. The stock market is a great way to build wealth over the long term and is an accessible option for anyone looking to start investing.
In conclusion, these 14 lessons have helped me to achieve financial security and create the life I want. By following these principles consistently and with discipline, you too can achieve your financial goals and build the wealth you desire. Remember, building wealth is a journey, not a destination, so enjoy the process and keep learning along the way.
If you need help starting your wealth building journey, check out Generational Wealth+
This article is for educational purposes only and should not be considered financial advice.