How to Get Rich From Nothing [12 Proven Strategies] (2024)

If you analyzed every self-made millionaire and studied their strategies on how to get rich from nothing…

…you’d find your way to this blog post!

Let’s dive in.

Getting Rich Starts with Your Mindset

You may have asked yourself in the past, “how can I get rich with no money?”

And truth be told, getting rich starts with your mindset and not so much with your wallet.

Pro Tip:You can always be financially rich but poor in every other area of your life (no friends, no love, no family, etc.). Remember to pick and choose your battles wisely.

My suggestion is that you should also work toward getting rich mentally and not just financially.

For example, it’s important to show gratitude and appreciate the things – and the people – that you do have in life.

Money is just a tool to help you accomplish your goals (like spending more time with family).

While money is an essential part of life, your focus should not be dedicated to money.

Remember this:

Money is the tool. Freedom is the goal. Never confuse the two.

How to Get Rich From Nothing

Are you ready to learn the 12 strategies on how to get rich both mentally and financially?

Then let’s get started!

1. Adopt a Growth Mindset

There are 2 types of mindsets in this world:

• Growth mindset
• Fixed mindset

Growth Mindset Definition:A growth mindset is when you believe you can develop your talents and skills through hard work, excellent mentorship, and constructive feedback.

A growth mindset will help you:

• Build wealth
• Learn new skills
• Build relationships

Those who adopt a growth mindset typically achieve more than those with a fixed mindset.

Fixed Mindset Definition:A fixed mindset is when you believe your intelligence, talent and skills are fixed and cannot develop for the better. You strongly dislike constructive feedback and you believe your failures validate your lack of skill or knowledge.

To change your reality, start by changing your mentality.

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So the next time you hear yourself say:

• I can’t do this
• I’m going to fail
• This will take me forever

Tell yourself “STOP!”

Don’t allow yourself to think these negative thoughts.

If you keep repeating negative thoughts to yourself, soon enough, you’ll start to believe them.

2. Build Multiple Income Streams

Millionaires get rich not so much because of their commitment to 1 job and 1 income stream.

They get rich because they havemultiple income streams.

If you’ve heard the saying “never put all your eggs in 1 basket,” then you should know to never rely on 1 income stream.

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And millionaires never rely on just 1 income stream.

In fact, the average millionaire has about 7 income streams.

Source: IRS

There are so many different strategies to earn multiple sources of income.

Below are some examples of passive income streams you might want to consider building in the near future.

Money is everywhere.

You just have to create your opportunity.

Related: Income Generating Assets That Will Make You Rich

3. Save and Invest

Millionaires don’t just become millionaires because of:

• Blind luck
• A big inheritance
• A winning lottery ticket

Source: The National Study of Millionaires

Pro Tip:The key to much of a millionaire’s financial success is that they started early.

Millionaires use thepower of compounding interestto build their wealth.

The earlier you start practicing the habit to save and invest, the earlier you’ll become a millionaire.

Compound Interest Defined:Compound interest is when you earn interest on your previously earned interest PLUS your original investment.

In plain English, compound interest is when your money makes you more money.

With compound interest, you probably won’t notice a significant change in your net worth over the first few years.

Take a look at this illustration of compound interest (and a $5,000 initial investment), below 👇

"Compound interest is the 8th wonder of the world." - Albert Einstein

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Here are a few other things I’ve noticed millionaires do when they invest:

• They typically aren’t day-traders
• They automate their investments
• They tend to invest in index funds
• They typically hire financial advisors
• They choose low-cost investment options
• They typically avoid higher-risk investment strategies

The best way to become rich is to start investing – even if you can only manage a $5 investment – that’s enough to start.

Pro Tip:There never is the “perfect” time to invest.

If you want to get rich, then investing could be a great option.

Just remember to keep a long term mindset.

Start today, your bank accounts will thank me later.

4. Build an Emergency Fund

The rich are masters in managing their risk exposure.

What does this mean?

If you want to learn how to get rich, then you must prepare for unexpected expenses, like:

• A roof replacement
• Medical emergencies
• A broken car gearbox

If you’re not prepared for these unexpected expenses, then you might have to use your credit card and build up high-interest debt – which isn’t one of the best ways to get rich fast.

Debt is the No. 1 way to NOT get rich.

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So how do the rich get rich and stay rich?

They stay out of debt by building up anemergency savings fund.

Emergency Savings Fund Defined:An emergency savings fund, also known as a rainy day fund, is a liquid and easily accessible savings account. You’ll want to save 3 to 6 months’ worth of your living expenses in cash to be used only for emergencies.

Let me fill you in on a trick I know that almost all of the rich I mentor use.

To earn a few extra dollars on the cash you store in your emergency savings account, consider using ahigh-yield online savings accountinstead of stashing your cash in a regular savings account.

Typically speaking, high-yield accounts have higher interest rates (around 0.60%) versus regular savings accounts (around 0.01%).

For a small investment, the 0.10% versus 0.60% really doesn’t make a big difference.

But, if we’re talking about several $1,000 dollars in your emergency fund, your interest rate could make a big difference.

This is just one trick to getting rich faster.

Let’s take a look at the numbers behind a regular savings account versus the high-yield savings account idea:

Who wouldn’t want to earn a few extra dollars through a high-yield savings account?

Ok, let me be realistic:Not everyone has a spare $100,000 to dump into a high-yield emergency savings fund.

So what?

Even if it’s “just” $1,000 or “just” $500 – what are you waiting for?

You’re still earning more with a high-yield savings account than if you had just opened a regular savings account.

Ready to open a high-yield savings account?

Here’s how to get started:

• Go to Raisin’s website(I use Raisin myself)
• Select one of the available savings accounts
• Open your savings account
• Stash 3 to 6 months’ worth of living expenses in your savings account

The best part about this strategy?

Not only do you get:

• Zero fees
• FDIC insurance
• 24/7 access to your funds

But with the current interest rates, you can also get over 5% APY.

A 5% rate on $10,000 of cash would earn you $500.

For doing absolutely NOTHING.

It’s time to start your journey to getting rich.

5. Set a Plan of Action

Millionaires get rich and stay rich because they have a plan of action.

They develop a way to assign goals for the:

• Short term (1 to 5 years)
• Mid term (5 to 12 years)
• Long term (12 years and up)

Anyone can set goals.

But not everyone can keep their goals.

Pro Tip:Millionaires achieve their goals because they monitor their progress daily.

Source: Business Insider

So, consider this:

Think about the last time you set your goals.

Now ask yourself when was the last time you reviewed your goals?

Pro Tip:If you don’t review your goals within 24 to 48 hours, there is a high chance that you will either struggle or you won’t be able to achieve your goals.

That’s why you should aim to develop a plan of action to conquer your goals and findfinancial freedom.

Develop a clear plan of action to help you conquer your goals:

• Write down your goals
• Create a vision board
• Clarify each goal

Pro Tip:Vision boards are extremely useful in capturing your goals. Your vision board should be placed in an area you see at least 3x a day (e.g. your bedroom, your office, etc.).

Without my vision board, I would not be where I am today.

Seeing your goals consistently, day-in and day-out gives you that extra boost to motivate you to complete them.

Now the only thing left to do is start.

6. Don’t Procrastinate

Procrastination is why you haven’t accomplished your dreams yet.

And to be very honest, procrastination gets the best of us.

Procrastination Defined:Procrastination is when you act against your better judgment, doing 1 thing even though you know that you should be doing something else.

In other words, procrastination is a lack of discipline.

I’ll tell you a personal story about procrastination:

For the past 4 years, I’ve wanted to start a personal finance blog.

I procrastinated for 4 years.

I never started because I thought I wasn’t good enough.

Plus, I thought I would fail.

Finally, at the dawn of the COVID-19 pandemic, I stepped up to the plate and started my blog.

Best. Decision. Ever.

The antidote to procrastination is action.

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There are many reasons why we procrastinate:

• You’re not patient
• You want immediate rewards
• You haven’t set clear enough goals
• You can’t imagine your future reward

Here’s how I eliminated my procrastination:

I started writing down my goals on a large whiteboard.

Every time I accomplished a task or a goal, I crossed out that goal – and crossing out a task or goal was such a great feeling.

It sounds odd, but it’s true!

Imagine where I could have been if I had started my blog earlier?

Imagine where you could be if you start doing the things you want to do today?

7. Create a Financial Hub

Millionaires are not average people.

That’s because millionaires do what the average person won’t.

The trait that separates the rich from the poor is discipline.

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Discipline is when Millionaires practice success-building habits even when they least feel like it.

What is 1 example of millionaires showing ultimate discipline?

They assign a purpose for each and every dollar.

In other words, they don’t blindly spend every cent they earn.

Pro Tip:Millionaires understand that to get rich, you have to keep a hawk’s eye on your money.

For example, Millionaires allocate their paycheck to the following:

• 529 plans
• Business accounts
• Retirement accounts
• Emergency savings fund
• Joint / Individual accounts

Millionaires have automated their money process.

How can you become like a millionaire and stay on top of your finances?

Budgeting.

One of my top picks for budgeting isYNAB [aka You Need a Budget] 👇

YNAB is especially awesome for people who are visual learners because it helps you recognize areas in your budget where you are:

• Overspending
• Underspending
• Approaching your limit

Pro Tip:Think of a budget like a road map: If you’re starting a road trip, you probably need a map to help navigate you from Point A to Point B, otherwise you’d be lost. Same thing goes for a budget.

Budgeting helps you get a better idea of what’s happening to your money.

If you’re looking to get rich, and slash costs, then I’d also consider couponing.

In fact, 93% of millionaires use coupons all or some of the time while they are shopping.

Source: The National Study of Millionaires

Millionaires know that getting rich means they have to save money.

If you are looking to begin your couponing journey, install the Capital One Shopping extension(it’s free).

As you look at purchasing your everyday online items, Capital One Shopping will indicate which items have:

• Promos
• Coupons
• Ongoing discounts

This extension takes seconds to install and could save you $100’s.

By slashing your costs this way, you could be 1 step closer to getting rich.

8. Find a Quality Mentor

Millionaires do not become so successful without the help of others:

• Their family
• Their spouses
• Their mentors

I want you to take a second and reflect on the people you know – specifically the people who have seen a certain amount of financial success.

Ask yourself these questions:

• Who are they?
• Where are they going?
• What did they do to achieve their success?
• How are they different from the “average” person?

If you find these successful people and learn from them, chances are, you’ll go where they go.

In fact, over 90% of millionaires attribute their success to a mentor.

Source: Insider

It’s my opinion that mentors are the ultimate shortcut to success.

Mentors offer you guidance in:

• Your financial life
• Your personal life
• Your professional life

Finding a good mentor is not difficult, either.

Below are a few examples of the options you might have:

• Close friends
• Family members
• Trusted professors
• A local community leader
• Someone from your office
• Someone from your church
• Someone from your volunteer committee

You just have to open your eyes and create your opportunity.

If you don’t ask, you’ll never know what potential you can reach with your mentor.

If you want to learnhowto find a mentor and some of the most valuable lessons I learned from my millionaire mentor, then check out my latest book: How to Get Rich from Nothing.

Mentors help you find shortcuts in life that otherwise you would likely have to wait years to learn.

9. Pay Yourself First

The saying “pay yourself first” is hailed as one of the key strategies to getting rich.

Let’s take a peek at what “pay yourself first” actually means.

Pay Yourself First Definition:Pay yourself first is an expression that describes wealth building habits. Typically, people who “pay themselves first” automatically save and invest a portion of their paychecks before using their paycheck to pay for everyday expenses.

All you have to do is:

• Determine how much money you want to save and invest
• Determine where it should be saved and invested (e.g. 401k, IRA, etc.)
• Determine how often you want to invest (weekly, semi-weekly, monthly, etc.)

Here’s how I’ve accomplished my automatic investing:

Pro Tip:If you aren’t sure how to link your bank account, select the investment frequency, or select the type of investment, try calling the customer service helpline.

They’re typically always very helpful.

Are you ready to start building wealth and getting rich on your own terms?

You can set up your outside investment account with proven investment platforms like M1 Finance.

With M1, you can set up:

• Roth IRA
• Traditional IRA
• Personal investment account

Pro Tip:Remember that as your paycheck increases, you should also increase how much you are saving/investing.

If you’re wondering how to get rich, one of the first steps is investing today – no matter the amount. Just start.

In fact, by the time you’re in your 60’s, most experts recommend having between 8 to 10 times your annual salary saved.

Source: Synchrony Bank

Personally, I’m trying to have a lot more than “just” 8 to 10 times my salary saved by the time I’m 60.

10. Steer Clear of Debt

Debt can destroy your path to getting rich.

Sadly, debt is pretty common as 80% of Americans are stuck in debt.

Source: Dave Ramsey

There are 2 main types of debt:Bad debt and smart debt.

Smart debt could include:

• Your mortgage
• Your business loan
• Any other low-interest debt

Smart debt is basically any debt that helps you buy or build appreciating assets (like a home or a business).

Bad debt, on the other hand, includes the following:

• Auto debt
• Credit card debt
• Any other high-interest debt

And once you’re in debt, it’s often difficult to pay your way out of it, unless you have a plan.

Getting out of debtdoesn’t mean you need an MBA or a degree in finance.

Getting out of debt is about 20% knowledge and 80% a change in habit.

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Changing your spending habits to get out of debt – and build your wealth – include:

• Earning more
• Investing more
• Spending less than you earn

Just imagine how your life will look if you don’t owe money to anyone anymore.

Being debt-free means:

• No more stress
• Increased cash flow
• Ability to save more
• Ability to build your wealth and get rich

Now, let’s look at the 2 of the most common types of debt:

• Credit card debt
• Mortgage debt

The point is this:Start your journey to building wealth today.

11. Use the System in Your Favor

Have you noticed that the majority of millionaires are wealthy because they own their own businesses?

In fact, 66% of millionaires are business owners.

After seeing this statistic, it became very clear to me that an answer to the question, “how to get rich?” is becoming a business owner.

Why?

You are your own boss, you reap the rewards, and more likely than not, you’ll probably put in a lot more work into your business than if you were a 9 to 5 worker, building someone else’s dream.

Pro Tip:One reason why owning your own business is one of the best ways to get rich is because you are building your dream.

And typically, you’ll put a lot more energy and effort toward making your own goals a reality than someone else’s goals.

If you do become a business owner, that’s when it’s a good time to consider establishing:

• S Corporations
• Limited Liability Companies (LLCs)
• Limited Liability Partnerships (LLPs)

These business entities give their business owners massive tax advantages – and liability protection in many instances.

Let’s take the LLC, for example.

Below are some pros to establishing an LLC:

• Tax deductions
• No double taxation
• Personal liability protection

Because I’m not an accountant, I urge you to talk to your accountant to see what tax benefits you could take to lower your tax liability and build your wealth.

12. Choose Your Friends Carefully

Have you ever heard of the saying:You are the sum of the 5 closest people around you?

This saying is true.

Think about the 5 closest people you hang out with most often.

Soon, you’ll realize that:

• You think the same thoughts
• You have the same goals
• You offer similar advice

There is a very high chance that you’ll become like the people you surround yourself with – whether good or bad, that’s up to you.

And if you aren’t similar yet – then you probably will be, in time.

People inspire you, or they drain you - choose them carefully.

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Chances are, the people you are looking for, are also looking for you.

You just haven’t met them yet.

So here’s my challenge for you:

Don’t be afraid to be the least intelligent and least experienced person in the room.

Surround yourself with people who are:

• Smarter than you
• More motivated than you
• More accomplished than you

And figure out how you can shape your life by just 1% to be more like them.

Closing Thoughts

To those of you who are wondering how to get rich and whether you can be the next millionaire in your family – the answer is you absolutely can accomplish these goals.

"Whether you think you can, or you think you can't – you're right." – Henry Ford

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Your attitude can literally make or break your future.

Whether youbecome a millionaireis based on your mindset and whether you believe in yourself.

If you believe you are a winner, you will become a winner.

Pro Tip:The more you believe in yourself, the more others will believe in you as well.

If you believe in:

• Yourself
• The process
• Your potential

…then you will make it.

How do you crush fear and your doubts?

Confidence and action crush fear.

Never allow someone else’s opinion to become your reality.

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It doesn’t matter what others think.

What matters is what you think.

And the bigger you think, the more you’ll accomplish.

Now that you’ve read this article, you can:

• Manage your money better
• Increase your confidence
• Improve your network
• And so much more

As long as you believe in yourself, the world is your taking.

Now do yourself a favor: Get rich.

Your bank account will thank me later.