24 Ways to Build Wealth from Nothing (Ultimate 2022 Guide)

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By Forrest | Last Updated: March 23, 2022

If you want to become a millionaire and reach financial freedom, building long-term wealth is a vital step.

Building wealth can take time, money, and dedication – especially if you're starting from nothing.

But that doesn't mean it's not worth it. Imagine your life not having to stress about your finances ever again. It sounds nice, right?

It's completely possible!

In this post, I'll explore how to build wealth from nothing, some tips to stay motivated on your wealth building journey, and much more. Let's get started!

What it Means to Build Wealth

What Does it Mean to Build Wealth?

Building wealth is the process of acquiring assets that will generate income or appreciate in value over time.

These assets can be cash, investments, property, digital real estate, or anything else that has the potential to increase in value.

When you're starting from scratch, building wealth can seem daunting. But don't worry, there are plenty of ways to do it. And, with a little dedication and effort, you can be on your way to financial freedom in no time.

It's important to note that there is a difference between rich and wealthy. You can also read how to get rich from nothing.

Tips to Build Wealth from Nothing

If you want to learn how to build wealth from nothing, there are a few key things to keep in mind.

Invest in the Stock Market

Time is your greatest asset when you start investing. The early you can invest your money, the more money it can generate in the future.

If you want to build wealth and make more money, the stock market is one of the premier methods to grow your money and make passive income.

With this form of investing, you're buying a piece of a company that is likely to be worth more in the future. As the company grows and becomes more valuable, so does your investment.

Of course, there are risks involved with investing in the stock market. But, if you're smart about it and invest in good companies, you can minimize those risks and maximize your potential for profit.

Investing in stocks works by generating compound interest on your money.

For example, if you start by investing $500, you might only earn $50 in interest for the first year. In the following year, you would generate interest on $550 – which would amount to $55 in earnings. The additional $5 is the power of compound interest.

Below is an example of how compound interest can benefit you. In this calculation, we started with $1,000 with an interest rate of 10% for 10 years. After 10 years, our balance would be $2,593 – without having to do any work!

Compound Interest Chart

And it only get's better from there.

In investing, there's a concept known as the rule of 70. This rule will help you easily calculate how long it will take to double your money.

For example, if you invested $25k at an interest rate of 10%, it would take around 7 years to double your money thanks to compound interest.

To start investing, I recommend using an investing app like Acorns to build wealth. The easy to use app allows you to invest in index funds, mutual funds, exchange traded funds, individual stocks, and more with just a few taps. As a bonus, you'll receive $10 in free stock when you register with the link below!

Acorns 5 · Stock Market · $10 Min.
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Use Real Estate to Build Wealth

Invest in Real Estate

Real estate is an excellent option to build long-term wealth and earn passive income.

One of the big advantages of real estate is that it can make money through several methods.

For example, rental income is just one way you can earn money from your investment. However, you can also make money through appreciation, mortgage pay down, and even rental appreciation over time. This is a great investment that pays monthly you can use to build wealth from nothing.

There are many different forms of real estate investing, each with their own risks and rewards. Below are a few of my favorites.

Crowdfunded Real Estate

Crowdfunded real estate platforms like Fundrise have made building wealth with real estate simple and accessible to almost any investor, new or experienced.

With Fundrise you can invest in a variety of residential real estate assets with as little as $10 to get started.

The returns will vary but it's possible to make over 15% annually. Register with the link below to get $10 free!

Fundrise 5 · Real Estate · $10 Min.
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Rental Properties

Rental properties are another common way to build wealth in the real estate industry.

With rental properties, you'll need some money upfront to get started. To qualify for a rental property mortgage, you'll need a 20% down payment and the income to support the mortgage. But once you have the property and it's rented out, the rent payments will start rolling in month after month.

Owning a rental property will require more work than other forms of real estate investing but it's also one of the more profitable investments.

Read to learn if Fundrise or a rental property is a better investment!

Commercial Real Estate

Commercial real estate can be a great way to keep your portfolio diversified and earn a passive income.

Like other forms of real estate, commercial real estate can provide rental income and appreciation over time.

You can get started with a platform like Crowdstreet. This platform has a larger minimum investment than residential real estate platforms, but it's a great option to start building wealth. You can check out my Fundrise vs Crowdstreet comparison for more info!

CrowdStreet is an one of my favorite real estate investing platforms. There are many options available for every type of investor and you can get started today for free. Sign up below! Open my Account
Disclosure: This link is an affiliate link, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

REITS

REITs (real estate investment trusts) are somewhat similar to crowdfunded real estate in that you can easily start investing without needing a fortune to get started.

These are publicly traded on the stock market and provide a way to invest in a variety of real estate assets with a small investment.

You can expect returns in the 10-15% range with many REITS and you can use an app like Acorns or M1 Finance to get started.

Acorns automatically rounds up your purchases and invests for you. Get started below!
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Disclosure: This link is an affiliate link, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Use Alternative Investments

There are more investments than just real estate and the stock market. These can be great options to help strengthen your returns and reduce your risk.

For example, it's possible to invest in wine with a platform like Vint. The average return is around 10% – which is a solid yield for many investment accounts. But wine investing really shines when the market is down. Because there is limited supply, the value of wine can hold steady during an economic disruption.

Vint 5 · Wine Investing · $50 Min.
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You can also invest in art with Yieldstreet. Art investing has seen returns greater than 15% in many cases and it a good option for many investors.

Finally cryptocurrency can be another lucrative investment if you want to grow your money. You can use Coinbase to buy and sell all of the most popular coins available.

While these investments can be great options, it's important to have a solid foundation and a financial plan before investing all of your money in them.

Diversify Your Portfolio

One mistake some investors make is putting all their money into a single asset class.

This can be a disaster for your investment portfolio if that asset class happens to crash.

That's why it's important to diversify your portfolio across different asset classes. This way, if one asset class crashes, the others can help balance out your portfolio and keep you in the black.

For example, if you place a large portion of your funds into stocks or real estate, one bad year and you could see your portfolio plunge over 50%. By using other investments you can help balance your portfolio and weather the storm of poor performing years.

There's no rules when it comes to the makeup of your investment portfolio, but some financial advisors recommend using a 60/40 split between stocks and other assets as you age.

Portfolio Structure

This means that if you have $10,000 to invest, you would put $6,000 into stocks and $4,000 into other asset classes like real estate or bonds.

You can adjust this split to your own risk tolerance but remember, the goal is to diversify your portfolio so don't put all your eggs in one basket.

It's always wise to consult your financial advisor before structuring your investment portfolio as they can guide you based on your circumstances.

Budgeting to Build Wealth

Budget Money to Build Wealth

While budgeting is simple in theory, it is difficult to execute on.

Spending less than you make is a simple concept to understand that only a small portion of people do.

If you want to get ahead financially and build wealth, you need to make a budget and stick to it.

To make a budget, start by taking a look back at your finances in the past few months to get a better understanding of your spending habits.

This can help you identify where you can cut back on your spending. Once you have a good idea of where your money is going, you can start to allocate more money to your savings account and cut back on other areas.

Budgeting can take some time to master, but it's one of the most important things you can do to improve your financial future and build wealth from nothing.

Avoid High Interest Debts

High interest debts like student loan debt, credit card debt, and other personal loans can cripple your finances.

The interest you pay on these debts can sometimes be more than you earn, making it impossible to get ahead.

If you have high interest debt, it's important to pay it off as quickly as possible.

If you have multiple debts, sometimes it can be smart to consolidate them into one lower interest rate loan to save money.

For example, if you have credit card debt, a car payment, and a personal loan, you can lump them together for a lower interest rate that can help you to pay it off sooner.

Start a Side Hustle

Side hustles can be a great way to increase your income and build wealth.

With a side hustle, you can bring in extra money each month to help you save and invest for the future.

There are plenty of different side hustles for just about anyone to start. Whether you want to make $50 a day or $500 a day, there are options out there to help you reach your goal of wealth creation.

Some of my favorite side hustles include:

If you're not sure where to get started with a side hustle, check out these fun side hustles for anyone!

Ask for a Raise

Asking for a raise is a great way to make more money fast.

Before asking your boss for a raise, you'll wan to do some research to determine the current market rates and have some numbers to backup your performance at the company.

You'll also want to consider how long you've been at the company and if you have any upcoming projects that could warrant a raise.

If everything lines up, schedule a meeting with your boss to discuss your raise and make your case.

You need to ask yourself, “what's the worst that could happen?” and the answer is that they'll say no.

Find a New Job

Finding a higher paying job is a great way to boost your income and start building wealth.

If you're unhappy with your current job or feel like you're underpaid, it might be time to start looking for a new one.

There are plenty of great jobs out there that offer a higher salary and better benefits. It's possible to find a new job in the same field with a 20% increase in pay over your current position.

Surround Yourself with Wealthy People

There's no doubt that the people you surround yourself with matter. In this Business Insider article, the author studied 177 self-made millionaire and found that nearly all of them surrounded themselves with other rich people.

So, how does it help you with wealth building?

While it's difficult to measure the exact reasons, it's likely that these people are a source of inspiration, motivation, and knowledge. When you're around other people who have achieved success, it can be easier to achieve success yourself. It can help you attract money.

It's important to note that not surrounding yourself with other wealthy people won't necessarily hurt you – in some ways, it might even help.

Establish an Emergency Fund

Having an emergency fund is one of the smartest things you can do for your wealth building journey.

When something unexpected comes up, like a car repair or medical bill, you'll have the money you need to cover it without going into debt.

Ideally, you should try to save 3-6 months' worth of living expenses in your emergency fund. This will help you to stay afloat during difficult times without having to resort to debt.

But it's also critical to know what constitutes an emergency. You should not use your emergency fund on things like vacations, clothes, or other non-essential purchases.

Instead, these expenses should be budgeted for ahead of time.

Multiple Income Streams

Create Multiple Streams of Income

If you want to build wealth fast, having multiple income streams should be at the top of your list.

By taking advantage of the different types of income you can start making money on autopilot without having to do anything.

For example, working a day job, starting a side hustle, and investing money can all generate income for your finances.

Prioritize Passive Income Over Active Income

For most people, earned income is their primary source of income and way of making money.

And while this type of income is a great way to pay your bills and keep your basic needs met, it also requires the most amount of your time and has the highest tax rate.

If you want to build wealth fast, it's important to focus on passive income so you can earn money while you sleep instead of having to work for it.

However, passive income isn't as simple as that. You'll need to either have some money set aside to get started, or be willing to work a large amount upfront.

Some examples of passive income include:

  • Investing in stocks or real estate
  • Writing a book
  • Blogging

It's also worth noting that many passive income streams will require some amount of work. For example, once your blog is up and running, it might require a few hours of work each week to keep going but the majority of your income is passive.

Start a Business

Starting a business can be an excellent way to build wealth and make more money if you have the skills and passion to make it work.

While it's certainly not for everyone, becoming an entrepreneur has many benefits.

There are many profitable businesses you can start with less than $1,000 – making it a viable option for just about anyone.

For example, starting a car detailing business can be a great way to make great money with low startup costs.

Owning a small business also comes with tax benefits that you might not otherwise get. You can deduct any business expenses from your taxes which could include a home office.

Use Apps to Automate Your Finances

There are plenty of finance apps that you can use to help manage your money.

For example, you can use an app like Truebill to have your bills automatically negotiated for you to save you money.

You can also use Personal Capital to track your net worth and watch your wealth build.

There are plenty of apps to help make your life easier. Give a few a try and see what works for you.

Truebill (Now RocketMoney) helps you take back control of your finances and start budgeting with ease. Register below to get started!
Register Now!
Disclosure: This link is an affiliate link, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Live Below Your Means

Living below your means is one of the most important things you can do if you want to build wealth.

If you're always spending more money than you have coming in, it will be very difficult to save money and get ahead.

But it's also important to remember that this doesn't mean you should live a life of deprivation. You can still enjoy your life and have some fun, but you should be mindful of your spending.

Utilize Low Interest Debts

If you really want to get ahead of the wealth building process, using low interest debts can be a good way to reach your goals.

For example, a 30-year mortgage could have an interest rate as low as 3%. Every time you make a payment, a portion of your money will pay interest but the rest will be applied to your balance.

The average return on the stock market is around 7% to 10%. This means, in theory, you could instead invest your extra money through a mutual fund or other investment instead of paying off your mortgage. The amount of money you'd have at the end would be larger if you choose to invest.

So, what are low interest debts?

I think of any debt less than 4% as low interest. Others might consider anything under 5%. Ultimately, it will depend on your situation.

If you do choose to take on additional debts, don't fall for any get rich quick schemes (aka multilevel marketing) because these can hamper your ability to pay off your debts.

Setup Routine Check-Ins

Building wealth from nothing will take time. It's important to setup routine financial check-ins to stay on top of your finances and stay motivated on your journey.

For example, set aside one hour every couple of weeks to check the progress of your wealth and analyze your net worth.

It's a good idea to discuss what's working and what areas you need help with. If you need help saving money – write down your goals

Live Frugally

Cutting your monthly expenses can have a drastically impact your ability to to build wealth and reach your financial goals.

There are plenty of frugal living tips you can implement to start saving money. When you cut expenses you can use your additional cash to invest money and start the wealth building process.

Break Down Wealth Building Into Smaller Goals

It might seem ridiculous to get rich overnight, but it's certainly possible to achieve small wealth building goals more quickly.

For example, your goal could be to save $1,000 in the next six months. Once you've achieved that goal, set another goal for yourself.

This will help keep you motivated and on track to reach your long-term wealth building goals.

Celebrate Small Victories

Whenever achieving a milestone on your financial journey, be sure to celebrate your victory.

This will help keep you motivated and focused on your goal of becoming wealthy.

Even if your milestones seem small, remember that each one is a step closer to your ultimate goal.

Learn from Others

There are plenty of people that have built wealth from nothing.

Learning from them can help you on your own journey to financial freedom. Try to find inspiration in these people and use their stories to help motivate you.

Invest in Yourself

One of the worlds most famous investors, Warren Buffett once said “The best investment you can make, is an investment in yourself.”, and it's completely true.

By expanding your knowledge and skills you can increase your future income that can dramatically impact your ability to build wealth.

So, how can you invest in yourself? Here are a few ideas:

  • Further your education
  • Take care of your mental and physical health
  • Network with others
  • Strengthen relationships with friends and family

Utilize Retirement Accounts

Retirement accounts like a 401k or IRA can be great ways to save for retirement and build wealth.

Many employers will also offer a match on retirement account contributions which is essentially free money you can save for the future.

Retirement accounts offer many tax advantages when compared to other types of investment accounts.

But keep in mind that you can only withdraw from these accounts when you reach retirement age otherwise you can face stiff penalties and tax liabilities.

Final Thoughts on How to Build Wealth from Nothing

Learning how to build wealth from nothing is easier than you think. There are plenty of investment options to consider to start building wealth in a matter of minutes.

The difficult part of building real wealth is sticking to your goals.

It can take a significant amount of time to generate long-term wealth so you'll need to stay focused and motivated if you want to achieve your dreams.

Forrest is a personal finance, entrepreneurship, and investing enthusiast dedicated to helping others obtain life long wealth. He owns several different blogs and is also passionate about health and fitness.
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