How You Can Build Wealth On Minimum Wage
Wealthy people don’t merely refer to those who own mansions, supercars, or any other material properties. But, those who earn minimum wage can also be identified as wealthy people. Being wealthy refers to those who have enough money to cover all expenses for a long time. Therefore, people with luxurious lifestyles can still be broke if they incur enough debt.
Then, how can people with minimum wage become wealthy? There are at least ten steps to help them build wealth while earning minimum wage.
1. Move to an Affordable City
By far, NYC and San Francisco are on top of the list regarding expensive places to live in the US.
The rates for apartments and groceries are super high, so you may consider moving to a cheaper city.
There are several options for the cheapest US cities: Buffalo, Springfield, Fort Wayne, Knoxville, and Jackson.
2. Find a Rent below $600 per Month Rent
There are two ways to cut expenses on living. First, find a place with utilities that costs less than $600 per month.
Or, you can share a room with someone to save more.
3. Eliminate Your Commute
Commuting from home to work may cost more without you realizing it. Instead of commuting, you can use a bike which costs you nothing.
Consider moving to a place within biking distance to your workplace. Not only it’s cheaper, but also healthier.
4. Cancel Your Cable
A standard cable subscription costs nearly one grand a year.
To reduce your spending, consider getting an antenna and watching a free broadcast channel or take an annual subscription for your cable.
5. Don’t Eat Out
You can spend less than $75 a month by eating home-cooked meals most days.
Some tips are buying food in bulk when it’s on sale, eating vegetables in season, and eating meat 1-2 times a week.
6. Don’t Skip Health Insurance
Skipping health insurance may save you money in a short time, but once you need hospital care, you can go bankrupt.
Therefore, choosing a high deductible plan is a great strategy.
7. Shop at the Thrift Shop and Mend Holes
Thrifting is a great option for shopping. You can find branded clothes in good condition for way lower prices.
Once you don’t use them anymore, you can still sell them to other people.
8. Rediscover that a Lot of Best Things in Life are Free
You can do fun activities without spending a penny, such as picnicking at a park, riding a bike, doing yoga outdoors, playing sports at the community center, or reading at the local public library.
9. Invest Your Remaining Money
An excellent strategy to be wealthy is to invest your money.
Use your money to pay all of your credit cards, establish a six-month emergency fund, open a retirement account and buy low–fee Vanguard funds.
10. Invest in Yourself
While you save money, you also need to escalate yourself simultaneously.
Go to a trade school or community college to upgrade your skill.
If you need more income, try hustling by becoming an Uber driver or tutor.
Wrapping up
Those ten steps can help you to be wealthy, even living on minimum wage. Make sure to be consistent, as it is the key to being financially stable in the future.
You may spend money for self-rewards once in a while, but always remember that living fancily on minimum wage will bury your dream of becoming wealthy.
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