Wealth Management

Managing Wealth

We are all shocked when we read about a famous celebrity with wealth who made millions over the course of his or her career, but who dies bankrupt. When actress Judy Garland of Wizard of Oz fame died in 1969, she had over $4 million in unpaid debt. The million dollar estate of Mickey Rooney, whose acting career spanned nine decades, had been reduced to only $18,000 when he died at age 93. Michael Jackson was $500 million in debt when he died in 2009, and Burt Reynolds, immensely popular in the 1960s, 1970s, and 1980s, declared bankruptcy in the 1990s. “I’ve lost more money than is possible because I just haven’t watched it,” Reynolds is quoted as saying in 2015, three years before his death.

Mr. Reynolds’ statement is a powerful one. It does not matter how much money you make, you have to learn to manage it wisely. And as these celebrities’ situations indicate, it’s not how much money you make, but rather how much money you keep. Unfortunately, these celebrities fell victim to what is known as lifestyle creep. The more money they earned, the more they spent, eventually borrowing even more money to support the lavish lifestyles to which they had become accustomed.

Avoiding lifestyle creep requires a disciplined approach, but it need not be a complex endeavor. One simple technique is to employ a bucket money management system. Using this system, you distribute your income among five buckets: a necessities fund, an emergency fund, an investment fund, an education fund, and a fun fund.

Necessities Fund

The money in this necessities fund is held in cash or in your checking account to pay for life’s necessities, such as housing, utilities, food, transportation, and insurance. A recommended target is 60 percent. That is, 60% of your income should go to spending on necessities. Whether you choose to DIY or work with a financial advisor, getting started with wealth management is a smart move that can significantly improve your financial position.

Emergency Fund

The money in this fund is to be used for emergencies, like that huge deductible you must pay if you have to have an unexpected surgery. You should grow the money in this emergency fund until it equals at least six months of monthly expenses, should you lose your job or another emergency situation. Since you need this money quickly if an emergency occurs, this money should be kept in a bank savings or money market account, where it will earn at least a little interest, but still be readily accessible. Start by directing 10% of your income into this bucket. Then do not touch it unless a true emergency occurs—and that does not mean a Caribbean vacation, no matter how well-deserved.

Investment Fund

You also need to plan for your future, i.e. retirement. Another 10 percent of your income should be invested in assets that can be expected to increase in value over the long term, such as stocks, real estate, and business. You can invest in some paper assets, such as mutual funds, exchange-traded funds (ETF), bonds with as little as $100 to start building wealth. One of the best pieces of money management advice is, “Pay yourself first.” When you direct $100 to be automatically invested in the investment fund each month, you are unlikely to miss that money. There is an old saying in the investment world: “Bulls get rich, and bears get rich, but pigs get led to slaughter.” Do not be greedy and invest in something that may (or may not) be able to return 25% a year. A 7% to 10% return will allow your money to grow nicely without exposing you to unnecessary risk. If you are seeking much higher returns on investment, then become a qualified accredited investor per the Securities and Exchange Commission.

Education Fund

In addition to investing for retirement, you should also be investing in yourself. The money in this fund is set aside to spend on increasing your high income skillsets through online courses, attending conferences and other personal development events. Consider reading personal finance books and registering for a public speaking class. It is recommended that 10% of your income be directed into a fund to support these self improvement activities.

Fun Fund

It helps us maintain our discipline when we know we also have a fun fund that we can spend on anything we want, so another 10% of your income should go into a fun fund that will enable you to enjoy some of the fruits of your labor. Maybe it is that new electronic device you have your eye on, a nice dinner out, perhaps a round trip to an all inclusive resort, or tickets to an upcoming concert or athletic event.

In reading this, you may be saying to yourself, “There is no way I can live on just 60% of my current income. My necessary expenses amount to much more than that.” So, adjust the percentages for each of your buckets. Maybe you need to put 80% of your current income in the Necessities Bucket, but do not neglect the other buckets. You could then direct 5% of your income in the other four buckets until you can afford more—perhaps because you get a raise. Just do not let that raise make you the next victim of lifestyle creep.

How To Get Rich And Stay Rich

As you earn more and more money, you should adjust your wealth management system accordingly. If you are earning less than $50,000 a year, directing 10% of it to your investment fund is your goal. But once you start earning between $50,000 and $200,000, you should target 15% for that fund, reducing your necessities fund to 55% of your income. When you are earning between $200,000 and $500,000, start putting 25% into investments, and beyond that, 35% or more. Again, you can do this by reducing the percentage you direct to your necessities fund. Think about it. If someone is earning $1 million a year and is spending 60% of it on necessities, that’s $600,000 a year. That is pretty extravagant. Remember, it is ideal to keep your monthly expenses low and your assets or income column high in order to get rich and avoid lifestyle creep from eating your wealth.

How To Get Rich

3 Fastest Ways to Get Rich

The best way on how to get rich fast and build wealth is to develop multiple streams of income, such as buy stocks, invest in startup companies, entrepreneurship, accredited investor and real estate investing. Likewise, financially independent people have assets that generate different types of income that is at least equal to their monthly expenses. Income you earn without having to work a job is commonly referred to as passive income.

To become truly financially independent, you must earn a sizeable passive income that’s enough to cater to your needs and still have extra funds to enjoy the luxuries of life. Passive income refers to money that flows in whether you work or not. It can also be referred to as the reward for your investments. Almost everyone starts with earned income before a few people graduate to passive income streams.

Everyone wants to make passive income, but it takes time and effort to build up. You need to be determined and focused enough to direct the proceeds from your earned income towards creating a passive income stream. But once you begin, it becomes easier as you learn from your mistakes and you get motivated to do more. Are you ready to create an easy way to make money via passive income?

The best time to start is now! A lot of people often tell themselves that they must earn more or grow older before they can start making passive income – this is so wrong. It is best to start now, especially if you are younger and not burdened with responsibilities. Plus, when you are younger, you have a lot more energy and can dabble in several things.

As you get older, your energy level drops, and you may rarely have enough time. Your time will be taken up by your spouse and kids and you will not really have the desire to try new things. Very few people appreciate how much energy and vitality they have when they are young, so we end up misusing our youth and then spend our old age regretting. To become rich and financially free, you need to begin your wealth building efforts early.

Why is it important to build wealth? The benefit of having wealth includes the freedom and full control over where and how you spend your time. When you start to earn all or the bulk of your income from passive income investments, you are able to:

Retire early
Spend more time with family and friends
Build generational wealth and trust funds
Travel around the world and holiday in exotic locations
Buy your dream home
Buy your dream car
Have access to better medical or healthcare
Volunteer and donate to causes that you believe in
Holiday or vacate whenever you want
Start a business doing what you love
Work from anywhere, such as a beach in Ibiza

The list is basically endless. There are so many advantages that passive income streams can earn you. If you are looking to become financially independent and wealthy, here’s how to get rich in 2023 below.

Success often leaves clues. What separates the rich from the poor and middle class is the power of leverage. For example, rich people are able to leverage income through the efforts of other people’s time, knowledge, and money. Check out this list of the 3 fastest ways to get rich:

1. Make more money. The fastest way to get rich is to steadily increase your income while decreasing your monthly expenses. Consider getting a better paying job, a second job or side hustle to accomplish this financial goal. Once you are financially stable, I highly recommend you develop and master high income skills that eventually pay $10,000 a month or more.

2. Save more money. Set aside no less than 10 percent of all earnings and adjust accordingly as your wealth continues to grow.

3. Invest more money. Tax returns show that the average millionaire has 7 streams of income, do likewise and diversify your portfolio. Take investing or wealth building to the next level by creating and buying assets throughout your entire life. For more info, read Rich Dad’s Guide To Investing: What the Rich Invest In, That the Poor and Middle Class Do Not!

About

Wealth Teacher

At an early stage in life, I (Quincy Goff) bought into the idea that I would one day live the American Dream and share the wealth. After graduating from high school and many years of attending college, hard work and long hours on the job or jobs, I thought I was well on my way to the path of financial success. I had accomplished my academic goals of acquiring a MBA (Masters, Bachelors, and Associates degree), but I still did not have a MBA (Mega Bank Account).

Likewise, I examined the lifestyles of many of my relatives, friends, and peers and saw that they were sitting in the same boat as I. If that wasn’t enough, I witnessed numerous hard working Americans with over 30, 40, or 50 years of job experience with barely anything to show for their efforts: still unable to live in the home of their dreams, still not able to drive the car of their dreams, still can not retire, and much less travel around the world. Many of whom have reduced their hopes down to winning the lottery or jackpot someday.

According to the Bureau of Labor Statistics, in 2020, the following were the average salaries for Americans based on ages 45 to 54 years old: $1,112 weekly or $57,824 annually. Through additional research and to my surprise, I discovered that about 10 (ten) percent of individual Americans earn over $100,000 per year!

The last straw happened when I was denied a simple request for a credit card increase by my bank in spite of my good credit score (above 700) and loyal years as a customer. On the other hand, my bank would have easily granted my request if I would have put up the title of my car as collateral. However, I was totally offended by the matter and did not care to proceed forward with the request. As I strongly believed my proven credit history report should have been more than enough to satisfy their terms of approval.

So on that very day, I made a promise to myself that my days of financial lack are coming to an end! Then I diligently began to study the ultra wealthy and any material on the topic of money and investing on a daily basis. Secondly, I took action and continually applied the knowledge I learned and adjusted accordingly.

I came across several lucrative discoveries and eventually saw a great need to teach financial literacy and financial freedom in this world. As a result, I surpassed 6 figures and became the founder and CEO of Wealth Teacher at https://wealthteacher.info. Nowadays, I give profitable insight on the 3 fastest ways to get rich, wealth management, how to get rich in 2023 and so much more!

FINANCIAL PLANNING

A financial plan report shows revenue or earning strategy.

1. Master High Income Skills and Earn More Money

Generally speaking, you do not have a savings problem, you have an income problem. You need to earn a lot more income as well as increase your income earning potential. In order to do that, I highly recommend you focus your energy on mastering a high income skill (a skill that will help you make a minimum of $10,000 per month) that does not require a post-secondary education. In addition, this is a skill set that you could learn the basics within a relatively short period of time, such as a few months.

Take the following list of high income skills for example: advertising (i.e. create and manage Facebook ads, Google ads), affiliate marketing, consulting, copywriting, sell digital courses, digital marketing, eCommerce (i.e. Amazon FBA, Shopify Dropshipping), entrepreneur, lead generation, public speaking, sales, web design, or YouTube channel creator. Overall, pick a skill that most resonates or interests you, that you may be naturally good at and commit to getting better every single day. I repeat and emphasize, you must study and/or practice this high income skill daily so that you become a subject matter expert in order to position yourself to make six figures.

On a lesser note, you can earn more money as a freelancer on huge website platforms like fiverr, guru and upwork. For the formal learners, investment banker is one of the highest paying jobs that make you rich fast. Yet and still, the best way to make a lot of money is by creating multiple streams of income, preferably thru passive income investments.

2. Have A Financial Plan

In order to obtain wealth, you must have a financial plan. As multiple streams of income do not happen by chance, it is a reward for meticulous financial planning and effort. Have a plan that states how much money you expect to save every month, how much you intend to invest towards wealth building, and the things that you need to work on. You need to fix a timeline to your goals and work within that schedule.

3. Save Money to Invest

Another step towards earning a passive income is to set aside money to invest. I recommend that you save a minimum of ten percent of your active income to invest into income producing assets that will have positive cash flow. Remember that you can not build a passive income if you have not committed to the idea of reserving money until you have enough to invest in a sure thing (asset).

4. Realize That You Have to Start Small

A lot of people get discouraged at the beginning when they realize how far they have to go. A journey of a thousand miles begins with a step. Even though your goals are lofty, you have to set milestones. These realistic milestones will serve to guide you and remind you that you have achieved some things and you are on the right path.

5. Start now

Devote your time toward obtaining a high financial IQ by reading numerous personal finance books like The Richest Man in Babylon or Rich Dad, Poor Dad. Likewise, every rich or wealthy individual had to start from somewhere. Warren Buffett, one of the most successful investors of all time, bought his first shares of stock when he was 11 years old and became a millionaire by age 30 and a billionaire at 56. So begin that personal financial planning process of making more money, saving more money and investing more money. Remain consistent with what you do, and you will reap the rewards.

16 Proven Ways to Make Money Fast

A businessman that is on the path upwards to financial success.

How to Make Money Fast

You may have recently gotten around to creating a budget or financial plan. Perhaps you have discovered your monthly income does not cover your monthly expenses. Each month you are getting deeper and deeper in debt. There are two ways to remedy the situation: (1) determine where you can cut down some of your monthly expenses; and/or (2) figure out how to make money fast. This article provides 16 ways to make quick money.

1. Make Money Fast with Uber or Lyft

Sign up to be a driver for Uber or Lyft in order to make some money fast. You can decide when you want to work—maybe just on weekends if you already have a full-time job. The hourly wage varies depending on the location, but Uber drivers average $20 an hour.

2. Get Paid to Babysit

Care.com enables you to offer your services as a babysitter, nanny, special needs caregiver, and/or senior caregiver. This is another instance in which you can also advertise in your local newspaper, on the bulletin board of a local business, or via social media and garner some references.

3. Make Money Dog Walking

A lot of dog lovers have jobs that keep them away from their homes for long hours. They will pay for someone to walk their dogs once or twice a day to ensure Fido gets the exercise he needs to keep him healthy. An ad in your local newspaper or on the bulletin board of your local grocery store or some other local business should get you started in this endeavor. Social media should also work. The aforementioned Rover.com also matches owners with dog walkers.

4. Get Money Fast to Deliver Food

Another quick way to get money fast is to deliver food. People often order from restaurants that do not offer delivery. That is where companies like Postmates, DoorDash, and Ubereats come into play. They deliver meals from these establishments to the consumers. It is easy to sign up to be a driver for any of these companies, and you can work whenever and however many hours you want.

5. Make Money Online: Teach English to Kids

Sign up to be a teacher on VIPkid and teach English to elementary-level Chinese students. No knowledge of Chinese is needed. Work one-on-one with a student to make money online. You can set your own schedule. There is no minimum-hour requirement and no commitment. Lesson plans are provided. The pay ranges from $15 to $22 an hour.

6. Get Paid to Run Errands

Many people hate the time they have to spend running errands. That is where you come in. Earn money fast by shopping or simply standing in line for those must-have concert tickets. TaskRabbit is a site that allows you to advertise your services for a one-time $25 registration fee.

7. Turn your car into a billboard

If you have a quality vehicle and can pass a basic background check, you can also make easy money by allowing companies to advertise on it. Carvertise.com and Wrapify.com are two websites that match drivers with advertisers. Wrapify’s website indicates you can earn anywhere from $174 to $452 a month, depending on your location and how much of your vehicle you agree to turn into a billboard.

8. Craigslist gigs

Check out Craigslist.com for gigs in your area. These are typically short-term, temporary jobs for which you can earn some quick money. There are various categories from which to choose, including labor, crew, writing, talent, computer, domestic, and creative.

9. Shop for and deliver groceries

Download the Instacart app to your smart phone, receive customer orders, do the shopping, and deliver the goods. You can choose your own hours, but you will need access to a car.

10. Earn Money Tutoring

One of the other services care.com supports is tutoring. Parents are more than willing to pay to help their child advance in school. If you have a lot of knowledge in subjects such as computers, math, or the sciences, you can earn good money. Two other platforms on which you can offer your tutoring services are indeed.com and wyzant.com.

11. Get Money to Answer questions

If you possess superior knowledge about a topic, you can share your expertise on a platform like JustAnswer to get money. Medical experts, legal experts, car mechanics, computer engineers, and home renovators are among those who can earn money online simply by answering questions that people submit.

12. Sell your blood plasma

You can do this at a hospital or some other donation center, earning anywhere from $10 on up. You have to be at least 18 years old, healthy, and weigh at least 110 pounds to be a plasma donor. You can sell your plasma as often as twice a week to make quick cash.

13. Post links for Fortune 500 companies

Computer Improvement sets you up with your own website and then you post links to name-brand companies or Fortune 500 companies like Visa, Bank of America, and Goldman Sachs. You do not need to be a computer expert; Computer Improvement does all the work for you. If you can do email, you can do this and earn over $37 an hour.

14. Get Money to Do Voiceovers

If you have a good voice, you may be able to earn money doing voiceovers. Voices.com is a freelancer platform on which you can offer your services to companies that are looking for a certain “voice.” Voices.com even has a beginner’s guide to voice acting on its site.

15. Perform odd jobs for fast cash

Several sites enable you to advertise your talent for painting, house cleaning, window cleaning, sewing, furniture assembly, electrical work, and more. TaskRabbit is one. Thumbtack and Gigwalk are two others to check out.

16. Make Money Pet Sitting

When they have to be away for some duration, a lot of people prefer to have their beloved pet continue to enjoy the familiar surroundings of home as opposed to putting them in a kennel. And there simply are not any pet care facilities available for some types of animals. Petsitter.com is a site that matches pet owners with potential pet sitters looking to make more money fast. You can sign up for the basic plan for free to see if you like it. Rover.com is another site. You can also put an ad in your local newspaper or on the bulletin board of your local grocery store or some other local business, or use social media to get the word out. These types of ads might be the way to go initially so that you can accumulate customer reviews to add to your profile on Petsitter.com.