I started my online dietitian coaching business with credit card debt in 2016. Today, my wife and I own 87 units of real estate worth about $12 million. Here are some money tips that helped us get to where we are today.
5 Money Tips That Will Help You Build Wealth
1. We followed the 40/30/30 rule with money.
- 40% OR LESS to living expenses
- 30% to taxes
- 30% to savings for investing
Too many people want to skip this step and go straight to owning assets that cash flow.
We worked hard in our careers and then our business to build up a nest egg. And, we lived on LESS than we made for years so we had the capital to invest in real estate.
PS – We don’t pay taxes anymore thanks to real estate 🙂
2. We set a monthly budget and STUCK TO it!
The budget would change according to the month.
If we were traveling for my business, we’d update the budget.
If we weren’t, we’d be able to save more money that month.
Not only should you have a budget, but it needs to adjust!
3. We stopped renting ASAP and bought a primary residence.
There’s nothing wrong with renting to start but when you buy a home, it’s like a forced savings account that appreciates!
Plus, my first home we bought actually turned into a rental property when we moved! Putting 3-5% down on your first home and then turning it into a rental property is the EASIEST way to get your first rental.
4. We didn’t fly first class, eat at fancy restaurants, or go shopping for designer clothes.
We have a few nice things now, but we don’t use our earned income to buy it. Instead, we use our portfolio income to buy our toys and dumb liabilities now.
The poor and middle class use earned income to buy liabilities.
The wealthy use portfolio and income from their assets to buy liabilities.
5. We talked about money every single day together.
Couples that set goals together with money, and talk about money, can build wealth.
If you can’t agree about money with your partner, and don’t work together to budget, save, and invest, it’s impossible to create wealth.
Awareness precedes change when it comes to money management!
How do YOU manage money with your partner? Let us know!
