My job involves talking to successful people and asking them how they manage their money.
an old merchant Stock market, which also created history merchant The youngest member of the New York Stock Exchange, he told me he invests in alternative assets such as works of art and luxury handbags. A single father of three who lived most of his adult life from payroll to payroll told me how he achieved financial independence by investing in real estate.
After seven years of asking early retirees, self-made millionaires, and “super savers” how they managed to amass wealth, you start to find common ground.
They give lots of good advice, some of which I’ve already tried to apply in my daily life to make more money.
In the spirit of keeping things simple and not burdening myself with too many objectives, I have selected two wealth creation strategies to put into action in 2023.
1. Diversify your income and create at least one passive income stream
One of the most common strategies that comes up in interviews is to focus on increasing revenue.
What I hear over and over again is this: There is a limit to the amount of money you can save. However, there is no limit to what you can earn.
No matter what your financial goal is—paying off debt, buying a home, or retiring early—finding ways to earn more money will speed up your deadline.
I have had a side or part-time job since I started my career in 2015. My first side job was stringing tennis rackets at a pro shop in New York, mostly out of necessity. At the time, I was earning an hourly wage as an intern and living in one of the most expensive cities in the world.
However, over time, as I started earning a real salary and received multiple pay raises, the purpose of a side business changed from a necessity to a choice, and I decided to pursue it.
With all this I want to say that my goal for 2023 is not just to do additional business. It’s about finding a more passive way to earn extra money so that you can free up more time and energy. My current job is teaching tennis. This is a very straightforward job that takes a lot of energy and time on your feet.
So now what do I do? How do I get passive income?
I’m going to follow another piece of advice I’ve heard many times: start with what interests you. Lean on what you already know.
For me, that is the real estate sector. After writing dozens of stories about how everyday investors have increased their income by buying and renting properties—and especially after so many investors have pointed out that 2023 is actually the United States of America. This could be a big year for buying real estate in the U.S.—I’m open to using your methods and giving it a try myself.
Don’t get me wrong, investing in real estate takes a lot of upfront work. It’s anything but passive at first – and even once you’ve bought and rented a property, especially if you don’t have a property manager, it can be a daunting task – but I think that it is more sustainable and has higher income potential than my current side job, where I trade my hourly hours for an amount that can only go up so much.
2. Set Specific Financial Goals
When it comes to managing my own money, I prefer to stay out of the way.
Every month, a certain percentage of my income goes directly into various savings and investment accounts. This is a good arrangement: I never skimp on saving because it is impossible for me. My money is automatically taken out of my checking or payroll account and I don’t even see it. It’s easier to live without something that you never see.
The only problem with this mindset is that it can lead you into a state of complacency. I like to think that I increase my account contributions every year or every time I get a pay raise, but I can’t remember the last time I made an adjustment. This is partly due to the “I don’t see it, I don’t think about it” principle, but also because I don’t have very specific monetary goals. I know that I save and invest a good portion of my income, and that has always been enough for me.
In 2023, I want to make an even better plan for my money.
What I’ve learned from successful investors is that without direction you get nowhere fast. Many of them set very specific monetary goals for themselves, be it buying a specific number of properties in a given year or earning a certain monthly income from their side business, and then plan to achieve that goal. come with.
To tie this all together: My financial goal for 2023 is to invest in a home and start generating rental income that exceeds my mortgage payments. That means setting specific savings goals so that I have enough money to cover things like a down payment and filing fees, and it probably means adjusting my monthly contributions so that more money goes into a savings account.
One last piece of expert advice that I’m putting into practice as I write this article: Put your goals in writing. Write them down. Look at them again and again and make sure that your habits and the decisions you make every day are moving you closer to what you want to achieve.