Did you know it’s possible to become a millionaire on a minimum wage? 3 Steps To Get Rich On A Minimum Wage
Becoming rich is not about how much money you make but how much you’re able to save and invest therefore in this guide, I’m going to be sharing with you 3 steps to get rich on a minimum wage and if you’re new to the blog then subscribe for more life-changing content
Table of Contents
Step number one: embrace frugality
The first secret to getting rich on a minimum wage is to embrace frugality
Although many people often misinterpret frugality; it simply means being intentional about how you manage and spend money. One of the reasons why many people are poor today is not because they don’t make enough money, but because they don’t know how to keep it.
Frugality helps you differentiate your needs from your wants so that you can avoid spending money on things that are not necessary
Another reason why you need to embrace frugality is that it is one of the fastest ways to achieve financial independence and even retire early
6 Ways to embrace frugality
The first step to embracing frugality is to make up your mind that you want to change your financial status; once you’ve made up your mind, it becomes easier to adjust your lifestyle to reach your financial goals
Next, you need to have a budget; that will help you understand how much you earn and spend. According to a survey, 65% of adults don’t even know how they spend their money, and that’s why most people remain poor. However, by creating a budget you will understand how you are spending your money, and you can quickly adjust your spending
A budget will help you realize that you might be spending too much money on a particular thing that you can do without
Another way to embrace frugality is by planning your meals and cooking in bulk. Food is one of the three major expenses and finding a way to reduce its cost can help you save a significant amount of money; by planning your meals you can save money by buying only what you need. If you fail to plan your meals, you may go to the grocery store and get food items that you don’t need which will later just go to waste
Furthermore, you can embrace frugality by always watching out for ways to save money; one of the ways to save money is by using coupons and shopping for discounts, saving a few dollars on every item you purchase can become a significant amount in the end of the day.
If you do it right you can also save some money by avoiding brand names when you go shopping also you can save money by buying used items and there are several items that you can buy used such as clothing, textbooks even a car, and finally you can save money by comparing the prices of items before making a purchase
With the internet, it has become easy to do a quick search of an item that you want to buy and get an estimate of how much it costs at different retailers
Again, one other place you can save some money by being frugal is to cancel your subscriptions; likely there are many subscriptions that you don’t use that are taking a ton of money away from you every month.
One of the subscriptions that many people are guilty of is having a gym membership they don’t use, so if you’re paying for a membership right now, see if it’s worth spending the money on every month
Remember being frugal isn’t about not spending any money, being frugal is about spending money on the right things and spending on services you don’t use doesn’t meet the essence of frugality
Lastly, you can save money by avoiding going into debt. One of the reasons why most people are struggling financially today is that they have too many debts. It’s often difficult for people to save money when they have debts that they’re battling; debts today can come with very hefty interest fees, so avoid high-interest debts at all costs
step number two: leverage free education
If you’re earning a minimum wage right now, one of the possible reasons is that you don’t have enough qualifications to be employed in a well-paying job. Going back to school is usually expensive and most people graduate with student loans that take years to pay, however, there are opportunities for you to learn almost any skill even if you don’t have money therefore the second step to getting rich on a minimum wage is to leverage free education
5 Places to get free education
The easiest place to get free education is in a public library, one of the habits of the richest people in the world is that they devote a lot of time to reading and learning new things
Billionaires like Oprah Winfrey, Mark Cuban and Warren Buffett all have attributed their success to what they learned from books; for instance, Warren Buffett goes through hundreds of pages of books he’s reading every single day and also reads the newspaper to understand what’s going on in the world
Another billionaire that spends a lot of time reading is Bill Gates, it’s said that he makes sure that he finishes a book per week on average or roughly 52 books per year
The next place to get free education is on YouTube. There’s virtually nothing you’re searching for that you won’t find on YouTube, it’s currently the second-largest search engine in the world with millions of videos on different topics. Every day people watch a total of 1billion hours of video on YouTube alone; you’re likely going to find channels dedicated to various things such as personal finance, technology, freelancing, copywriting, fashion, food processing and many more; all you need to learn from YouTube is a device connected to the internet, and you already have that so what are you waiting for start learning a skill immediately today
Another place you can get free education is by using Google or any other search engine. If you have any questions that you don’t have the answer to, you can simply ask the search engine, and it’ll return several pages of answers to you; however because of the numerous search results there are some forms of information that may not be accurate, so you need to do your due diligence before using them also, there are several authority sites where you can always confirm the accuracy of any result you find on the internet
Another place you can take advantage of is our online platforms like Allison and Coursera. There are different courses available on these platforms such as business management, programming, design classes and many more. Another place to get free education is on Udemy, this platform features experts from various fields across the world teaching many skills although, most of the courses require you to pay a certain amount there are always free ones too
Finally, you can get free education from mentors. Mentors are people who have achieved the level of success that you desire, therefore by following a mentor you can learn from their mistakes and successes
A mentor also helps you stay focused and accountable. Another benefit of having mentors is that they can help you identify your goals and create an actionable plan for you to achieve them
step number three: invest for the long term
The last step to getting rich on a minimum wage is to invest for the long term.
I understand that investing is easier said than done, especially when you’re on a minimum wage. With just a minimum wage income you still have to pay for transportation, food, housing, clothing and several other bills; however, by embracing frugality as I’ve just mentioned earlier you should be able to have enough money to start investing
Many people believe that they must have a lot of money before they can invest, but this isn’t true. Investing is a way to grow money, so you can start with any amount; the one dollar that you invest today has the potential of becoming hundreds or thousands of dollars in years.
For instance, a thousand dollar investment in Amazon during the initial public offering in 1997 would be worth more than a million dollars as of May 2020 when the stock price was at its all-time high
Now let me show you why the only way to become rich on a minimum wage is by investing; calculate your monthly take-home multiply by 12 months; then you will know how many years it will take to make a million dollars
The best way to get rich on minimum wage is through investing