To get ahead with your finances you sometimes only need an intense burst to help get the ball rolling. I find that it’s extremely important to build momentum. This article is for everyone looking to get extreme about their savings account. Life’s too short to be broke and to not be able to do the things that you want to do.
You can keep on doing what you’ve been doing or you can try some of the tips in this piece to get there faster. I want to help you grow your net worth by $10k in the next six months.
I wrote a while back on why you should save $10k in six months. Now it’s time to expand on this. You can’t just read articles around here without actually doing something. I expect more from you guys. I find that by building up that first $10,000, you set yourself up for success. You figure out how to save money and you get motivated to make more money.
I promise you that there’s no better feeling that having money in the bank in your late-20s. This eliminates most of the stress from life. It’s also fun to travel to new places.
What are ten tips to help you grow your net worth by $10k in six months?
1. Find your biggest weakness and tackle it.
What are your problem areas?
You have to know where your money is going. You have to know where you’re messing up. You need to see what you’re struggling with so that you know what to fix.
Track your spending for the next two weeks or so. You can just look over your credit card statement or your checking account balance. See where your spending the majority of your money. My bank just started automatically organizing my spending into categories. I would share the results if I wasn’t embarrassed about how much I spent on eating out last month.
You work on one problem area at a time.
When I got into fitness, I tried to tackle every issue in the world. I was reading complex articles on how to get enough protein and different grips on the deadlift. What I really needed was to actually lift weights consistently and cut out the junk food. We all know what eating well is. We just don’t do it. We debate everything online because it feels productive.
On that note…
2. Cut one thing out of your spending.
Can you cut something out of your spending?
When I needed to get hardcore a few years back, I had to cut back on my cell phone plan. This may not seem like much but my cell phone bill was killing me.
What can you cut out totally? What can you cut back on?
Get yourself a quick win here. A few options include:
- Negotiate a current plan (insurance, cell phone, etc.).
- Trying cooking (I know that this played out. It’s worth trying).
- Delay a major purchase.
3. Find a way to increase your income.
This doesn’t have to be pretty. You can get a part-time gig on the weekends. You have to make more money. There’s no way around this. You’re never going to get that huge savings account without earning more.
Making more money is what gets you to your financial goals. You can’t just share memes and talk about what you want to do. You have to get out there.
I’ve covered this on here many times. Read one of the highly practical guides on making more money.
4. Learn ONE new skill.
You should always be focusing on the long-term. Trying to make a quick buck won’t get you anywhere. I’ve seen friends with good intentions get caught up in random online schemes for the past 5 years because they’re always getting conned into some idea in hopes of getting rich overnight. That sort of thinking will only make things worse.
I know that it’s difficult to do so in the moment but I really want you to invest into learning skills.
When you become good at something, you increase your income. You can teach others how to do this (Theo became a full-time tutor) or you can now provide this service for money (my buddy Justin started playing guitar at weddings).
5. Save first. Then spend.
It’s tempting to spend your money as it comes into your account. This is like telling yourself that you’re going to study after you go out. This never works.
Always save first. Then you can spend.
If you’re in debt, you have to focus on making your debt payments first. You have to be ruthless. You have to hit your targets first. Then you can think about having fun.
Put your money away with the Houdini System. Hide it. Don’t have access to it.
6. Find cheap party options.
You’re going to want to stay sane. This stuff will drive you crazy if you never go out and enjoy yourself. There’s nothing to brag about if you save money but miss out on life. If you want to stay focused for the long-run, it’s important that you find ways to have fun on the cheap.
We did a fun video on entering the dating game when you’re broke.
7. Hang out in new social circles.
There’s a million quotes about how you become who you hang out with. Show me your friends and I’ll show you your future. Something like that, right?
It’s important that you hang out with people who inspire you.
Would you train with someone who’s out of shape?
Would you take financial advice from a broke person?
I’m not telling you to ditch your friends. I just want to see you expand. I want to see you try to change things up. Instead of talking about stepping out of your comfort zone, try to make this happen.
8. Look into investing your money.
You want to start investing so that you can speed up this whole process.
The Studenomics rule for building wealth is to find a way to make money in your sleep. Before you get there, you may have to invest in yourself.
Saving up will only get you so far. You’re going to have to find ways to invest your money to get to the next level. My best investments have been real estate and my blogging business.
9. Start working out and get yourself into shape.
Too many folks mess around here. My friend Trevor misses work because he gets sick. I think that he gets sick because he doesn’t stay on top of his health. It’s important to start working out.
The process of training will change your life. I do weights, pro wrestling and grappling. I don’t expect you to start fighting. However, your perspective will change when you become obsessed with lifting and trying to improve yourself. The way you do anything is the way that you do everything. You can’t be a winner in life if you suck at small things like finding a routine to get jacked.
10. Try to do random things for money.
“You should sell your stuff on eBay.”
That seems to be the go-to advice online these days. I mean, I’m sure that there’s people who actually do this. Have you met anyone that does this though?
I want you to try random ways to make money.
I don’t want you to close this article before you think of a way to make more money. I know that you’re going to fire up your Tinder or Instagram and continue to swipe right or double tap. It’s natural. We get motivated and then keep on going. I want you to get into the habit of taking action.
But Martin — I can’t do this! You don’t understand…
If you’re ready to take your savings to the next level then keep on reading…
Here are a few additional tips to hit this goal:
- Don’t panic when you mess up.
- Focus on the goal.
- Copy what others have done that are where you want to be.
- Treat yourself to some fun. Stay social. Don’t isolate yourself from society. Just know when to pick your battles. I can’t go out on Thursdays anymore.
- Keep on trying to make more money. Find ways to increase your income. Saving gets boring.
- Keep it fun. Hang around fun people. Laugh lots and get silly.
It’s important to have a bold goal that keeps you motivated and working. I’ve helped many readers with this specific goal. Building your net worth by $10k over the next six months can be the goal that forces you to finally make some changes.
Here’s a summary of the process that I’ve used:
Get paid – pay myself first – increase skills – increase income – increase savings- invest the savings – take a risk – repeat.
Once you see your bank account grow to $10,000 you’re going to want to keep on going. Nobody stops.
“If you will live like no one else, later you can live like no one else.” — Dave Ramsey
4 thoughts on “10 Tips to Grow Your Net Worth by $10k in Six Months”
Great, advice! I think tackling your weakness one at a time is a recipe for success. Trying to do too much at one time often leads to failure.
Agreed with that Lance. It’s impossible to try to tackle every issue at same time. One at a time.
Tackling the weakness is a great advice. But finding new ways to earn money seems difficult. Learning a new skills can be the best way to increase the income source.
Overall, its helpful tips to grow income
Take a detailed look at your liabilities. This should be an easy number to figure out as it’s simply how much debt you owe each month and in what form, such as your mortgage, credit card debt, and loan payment.
Are there liabilities that you can eliminate or reduce? Reducing your debt is a big step in helping your net worth number increase!