ealth doesn’t happen overnight and there are no tricks or hacks to jumping the process. You need to know the basics of wealth-building to see results.
Plus you don’t want to make some money mistakes many beginners make.
In this article, I’ll be showing you the simple steps you can take as a beginner to start growing money. This is for you if you are totally new to this financial freedom thingy.
#1 Know your history with money
Before prescribing a solution to any illness, a doctor would have to run a test to know its cause. It’s the same approach with planning for financial freedom.
We are talking about money here and if you are not in a good relationship with it, it’s important to know your history and ways to improve.
Ask yourself questions around your psychology towards money, your struggles with money, experiences and weaknesses, even family history, parents or spouse mindset towards money counts. Knowing your money history will help you know what to tackle.
#2 Work on your financial discipline
Growing money is not a walk in the park so don’t build fantasies. It will take a lot of commitment to your goals not spend what you set out to save or grow.
It may require that you delay the fulfilment of some luxuries, desires and wishes. If you must become financially free and have sustainable long-term wealth, becoming money-disciplined is non-negotiable.
#3 Start your journey by saving
Everyone starts somewhere but it begins with taking baby steps—developing a good saving culture. Have a yearly goal to save a certain amount of money at a set time.
Then break your yearly goal into monthly plans and automate the process so that you don’t go back on your commitment.
When I started my journey four years ago, I started by saving N3,000 ($6) every month without a real source of income. In a year, I had saved N36,000 ($72).
It may seem insignificant but that effort was a motivation for me to convert my ROI at the end of the year to an investment portfolio that gave me a x1000% ROI roughly ten months later and also helped me discover my gift as a money strategist. Currently, I’m helping seven people in my yearly accountability program embrace the same goals.
#4 Don’t go alone
If you are like me with decent money discipline and habits, you can set your goals and achieve them without anyone’s help.
All you need is an app that can collect the set monthly amount automatically from your bank account. They guarantee a yearly ROI of between 10-15% and are quite reliable.
However, not everyone can stay committed which is why enlisting the help of an accountability partner or strategist would do you a great deal of help.
If you wish to get started by yourself, you can read more about these apps and go for any that you feel comfortable with.
#5 Have a big picture mindset
To stay committed, you must have a driving and compelling reason to save and grow money. It may be the joy of having a seven-figure in your name sitting in an account that is yours.
Money is a defence, you know, so I can really imagine how cool and confident it would feel to be the owner of something so useful.
Without a big picture mindset, your goal will feel tiresome and you’ll quit. Make sure you don’t quit, picture the end and the joy you’ll get from staying through before you start any financial goal.
#6 Have a consistent money conversion cycle
Saving for the sake of saving is not wise because wealth cometh by converting saved earnings into investments and assets that can multiply your money over time.
Before you start your financial goal know what you will do with what you will accumulate. At the end of your savings period, what next?
You may want to say: I’ll invest in a plot of land, invest in crypto with a certain amount, buy stock or set up my online solo business.
Don’t save to impress or spend on liabilities, keep the money cycle moving and you’ll be in wealth in the nearest future.
In conclusion, as a beginner, growing money comes down to taking baby steps, learning your habits and history, working on your weaknesses, defining your goal, setting up a system that helps you stick to it and knowing what next after saving so you don’t fall back to level zero.
Becoming money-wise is what I help regular people do by sharing my insight on money through articles on this site and by helping my Wealth Mastermind Community set, achieve and scale up their financial goals. You can contact me if you desire to join the Wealth Mastermind (MGAP).