You can achieve wealth by increasing your income through a side business, a second job, or by leveraging your current employment. It is also smart to set emergency savings goals so you don’t end up relying on credit cards when unexpected expenses pop up.
There are self-made millionaires all around you who work regular jobs, live below their means, and save and invest wisely. The key is to prioritize your savings and be consistent with it over time.
1. Invest your savings
Many people become millionaires through their regular job and consistent saving. The key is to learn how to live below your income in order to prioritize savings. You should also develop multiple streams of income, such as a side business, dividend and investment income, rental properties, and more. Lastly, you should build an emergency fund. Experts recommend having at least three to six months of living expenses in an accessible savings vehicle.
Keeping cash under your mattress is never going to get you rich with a normal job. To speed up your path to millionaire status, you need to put your savings to work through investments. This could mean a taxable brokerage account or a tax-advantaged retirement account.
Whatever strategy you choose, avoid “bad debt” — which is anything that goes against your wealth-building goals, such as credit card balances or consumer spending. Instead, look for strategies that provide high yields with low risk. And remember: anything that seems too good to be true usually is. It takes time to accumulate wealth, so start now and stay the course.
2. Create a budget
If you want to get rich with a normal job, it’s important to create and stick to a budget that minimizes expenses while allowing for savings. Start by calculating your monthly income and expenses. Be sure to include all sources of income, including tips, a side hustle and any other supplementary revenue. After adding up your variable and fixed expenses, make sure that your total expenses do not exceed 90% of your take-home income. If they do, consider trimming back some of your variable expenses or looking for ways to boost your income with a side hustle or safe investments that pay regular dividends and interest.
It is also critical to pay off any credit card debt you have. This will help you avoid getting stuck in a debt quagmire of penalty payments and high-interest rates. Lastly, create savings goals to save for a big purchase, like a new car or home, or an emergency fund. Use the SMART goal framework to ensure your goals are specific, measurable, attainable, relevant and time-bound. By following these simple steps, you can begin to build wealth and achieve your financial goals.
3. Pay off your credit cards
Credit card debts can trap you in a debt quagmire of high interest rates and penalties. It’s essential to pay off all debt before saving or investing. Consider personal loans and balance transfer credit cards, which can combine your credit card debt into one monthly payment with a low-interest rate. If you struggle to pay off your debts, try tightening your budget. Reduce unnecessary spending such as dining out or unused streaming services.
Once your credit card debt is paid off, don’t spend again until you have an emergency savings fund that covers three months of income. This should prevent you from falling into the debt cycle again in the future.
You can get rich with a normal job and save regularly by making it a priority to live below your income and prioritize saving. It’s also important to have multiple streams of income, such as your salary, side businesses, and investments. By making these smart choices, you can build wealth over time and get to the top 1% of earners. Then, you’ll have the freedom to pursue your dreams and live life on your own terms.
4. Get a second job
It might sound cliche but the quickest way to become rich is through saving and investing your money. This means that you need to keep a portion of your salary and invest it for the long term. Whether you choose stocks or bonds (stocks are shares in publicly traded companies and bonds are debt-based investments that yield higher interest rates than savings accounts) the more you save and invest, the closer you will get to your financial goals.
Getting rich with a normal job is not impossible. In fact, most millionaires work regular jobs and are consistent savers and investors. In addition, they live below their means and make smart budgeting choices.
If you are not sure where to start, try starting a small business on the side. This can be something as simple as a lawn care or vehicle detailing company that can easily be run on weekends. Just be sure that you have the right skills and motivation. If you are not, you may want to look into investment banking or physician careers which offer a great salary.
5. Start saving
You need to have a plan for your money, and that includes establishing financial goals. This will help you determine what your definition of rich is and how you’ll get there. You may have to work harder to reach your goals than other people, but it’s not impossible. Many self-made millionaires came from ordinary backgrounds and worked hard to get where they are.
Once you have a plan, the next step is to start saving. You can do this by creating a dedicated savings account or using an app that automatically rounds up your purchases and puts the extra pennies into your savings account. You can also save money by cutting back on unnecessary spending and eliminating recurring expenses.
Another option is to find a side hustle that will allow you to earn additional income. For example, you could freelance, write a blog, or invest in a home business. Whatever you do, make sure that your earnings are increasing over time so that you can grow your wealth faster. In the meantime, don’t sabotage your efforts by going into debt or buying things you don’t need.