How to become wealthy on a low income

How can you possibly build wealth and become wealthy when you don’t make a lot of money. That’s what I'm going to be answering in this video.

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2. How to make more in passive income than expenses
- The first step is not building a business but building a foundation
- And cutting the weeds in the garden

Now this Means: Foundation
- Your foundation is a good job, emergency fund, and a paid-for house
- Good job means secure income for a long time ( make sure you like the job to )
- Emergency fund of 6 months means ( if you lose that job, you have 6 months to cover all your bills and get back on your feet )
- Living Expenses – will be the most expensive thing in your life ( so if we buy a house within budget and pay it off, we will be good )

Tip: this means no matter how hard life hits you, it’ll have a hard time knocking you down.

Second thing: Cutting out the Weeds from the garden
- You have to cut out the bad spending habits ( you do this with a budget ) – use my simple budget
- You pay off all your debt ( student loan, car loan, credit card, and personal loans ) – the house is different
- But this means you have a clean slate, where you can plant your wealth

3. Work the Plan
- Simple budget + Freedom steps that I created

First Step: Debt Freedom Second
- You save $1000 for emergencies first
- And then you split your money this way, every time you get paid

Emergency account: Balance is $1000 + 1% every Paycheck
Invest: 1% every paycheck ( I have a link to my M1 finance portfolio you can copy and invest into if you want 0
Debt: 26-46% of paycheck to pay off all debt exept the house
Expenses: 50-70% and no more
Fun: 1%
Charity: 1%

Why: this will get you out of debt fast, and build healthy automatic habits.

Second Step: Wealth Building Step + Foundation
Emergencies: balanance of $1000 + extra + 20 or 10% until you build up 3-6 month of emergencies
Investment: 10-20% ( first max out the Roth ira, then employer match then taxable account )
Debt: 0% ( you’re debt free)
Expenses: 50-70% ( I recommend 54% )
Fun: 5% ( more fun )
Charity: 1% ( habit building )
Step 3: Freedom Section ( after you a full emergency fund )

Emergencies: 0% balance of 3-6 month of emergencies
Investments: 20% no kids and 25% if kids into a 529 account
Debt: 15% extra payment towards the mortgage
Expenses: 59% or 54%
Fun: 5%
Charity: 1%

Tip: you might say Tommy, but charity is getting nothing. Its building a givig habit in your brain ( most people that don’t give will never give, but people that give something will usually give more in the future )

Step 4: Auto-Pilot ( you can let your foot off the gas )
- You have a paid-for house
- No debt
- And you invested a ton of also
- And you have a full-blown emergency fund

Emergency: 3-6 months balance but 0%
Investments: 20-25% ( don’t stop )
Debt: 0%
Expenses: 64% ( but remember you have no mortgage so this is all for extra stuff you want to buy in cash )
Fun 10%
Charity: 1% or 10% it's up to you

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I'm an Accountant but I'm not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

Видео How to become wealthy on a low income канала TommyBryson