Turn $12 per hour into $500,000
With all the financial advice available now, it’s easy to get confused. Credit card reduction companies and different investment strategies that are sometimes scams. They often take advantage of the financial ignorance of a population obsessed with consumption but hate budgeting and saving. Blacks, according to Nielson, read more financial magazines, 28% more than any other group, but lag behind in wealth and resources as a group.
In terms of wealth—that is, home value, what you earn after paying all the bills, retirement account, emergency savings, and stocks and other possessions—the black-and-white disparity is staggering! According to the Washington Post, in stocks, bonds and other holdings, whites have $180,000, blacks have $1,100. We could go into all the stats and disparities, but today I’d rather focus on the potential.
Having the right mindset to build wealth is the starting point. Understand that wealth is a gradual process based on practical economic decisions where compound interest broadens your reach and lifestyle decisions protect you from external conditions. You must already know that my first rule is to live below your means, if possible well below. This needs to be repeated and emphasized as simply as it sounds due to the constant need to live large or keep up with the Joneses in American society.
The next question is after living below your means, which would allow you to create emergency savings, what do I do with my excess cash? Anyone who builds wealth should always be looking for ways to make their money work for them. You may want to invest in your own business or in a family business. You may want to invest in real estate. We just mentioned the disparity in stock holdings. Don’t be afraid to jump. Do your research thoroughly, but take action. You can invest in the companies you already spend money on that you like. Check to see if they have drip beads. A drip account allows you to invest in stocks with as little as $25.
I have to bring you back to a story I read about 3 years ago. Mr. Earl Crowly worked as a parking attendant for 40 years and never made more than $12 an hour, but he did manage to amass a $500,000 worth of stock portfolio using drip accounts! This was his wealth strategy! You could use it yourself and add other strategies with this. Mr. Crawley has no credit card debt and I think his house is paid off. Although he was not a millionaire at the time of the report, he probably is now. If not, it doesn’t matter because he has established a foundation of wealth and a strategy for his children to follow from just $12 an hour! Mr. Crowley is the perfect example of The Trillionaire Next Door. I know he was living below his means based on his income, he had no choice but he saved and invested wisely! It just proves my point that hardworking people can create a foundation of wealth and financial independence for themselves and their family by playing defense! It doesn’t matter how much money you make as long as your mindset is correct. Eliminate frivolous spending, live below your means, save and make smart investments.
