SIMCEL ONLINE

1. Save for a Rainy Day

Look…

I’m all for preparing for a rainy day and building a slush fund to cover 3–12 months worth of living expenses.

But the primary goal of your savings should NOT be waiting around for a rainy day.

It should be to invest in cash producing assets that eliminate financially rainy days entirely!

Once you have a few months’ worths of living expenses stashed away, your ONLY savings goal should be to earn enough money that you can invest in businesses, mutual funds, real estate, and other assets that will produce income.

If the sh!t hit the fan and I lost my current business, I’d much rather have investments that yield $3,000/month in income than even $50,000 of cash in the bank.

Prepare for a rainy day, but save for wealth.

2. The Stock Market/Real Estate Are the Fastest Paths to Wealth

They’re not.

If you want to lose a lot of money or find yourself royally screwed in a business deal, then I strongly recommend that you jump into the world of stock trading and real estate investing with no prior experience.

I’m not saying that you can’t make money in the stock market or with real estate, you can and you can make a LOT.

But these fields require years of self-education, practice, and losing lots of money before you’ll be able to consistently produce income with them.

I’d recommend that you start your “investing” by investing in YOURSELF. Your education, your own business, and your network.

Invest in a side hustle that will allow you to predictably earn income for the next few years and slowly educate yourself about alternative paths to wealth.

Don’t jump into real estate or the stock market assuming they are the easiest or fastest ways to wealth.

3. Get More Credit Cards!

Nooooooooo!

Get one credit card a year, use it responsibly, pay it off IN FULL every month, and use it for the points.

Don’t go wracking up 5-figures in consumer debt to pay for pointless crap that you don’t need, m’kay?

If you aren’t disciplined enough to spend only what you can afford, then don’t get a credit card.

It’s that simple.

4. Clip Coupons and Be a Penny Pincher

You will NEVER save your way to wealth.

Period.

You can save $150–300/month by denying yourself personal luxuries (like Starbucks) and wasting hours clipping coupons.

OR, you can earn an extra $1,500 to $3,000 a month by building a side hustle or freelancing.

If you want to build real wealth, focus first on growing your income and then saving the overflow.

Don’t waste your time trying to make nominal gains by coupon clipping and penny-pinching.

5. Don’t Pay for Something You Can Do Yourself

Bar none the WORST financial advice I ever received was to never pay for something I could do myself.

Really?

Is EVERY task that you have to accomplish on a weekly basis worth your time?

If not, then pay someone to do it.

I have a personal chef, a housekeeper, and several employees.

And let me tell you, paying these people to take low-level tasks off of my hands has helped me earn HUNDREDS of thousands of dollars over the years.

In fact, I’d argue that the SECOND you can pay someone to do something that isn’t worth your time (calculated by your hourly rate – the rate it would cost you to hire someone) then you should do it.

For example, if your time is worth $75/hour and your apartment needs cleaned for an hour every week, you are literally putting an extra $25 back in your pocket by paying someone else $50 to clean it for you.

Outsource and delegate intensely and you’ll have more time to focus on income-generating activities.

Credit: Andrew Ferebee