How I Became a Financial Wizard in 5 Years or Less

Some people have all the luck, don’t they? No matter what they do, they always seem to be on the right side of financial opportunities.

whether it’s choosing real estate investments over stock shares or refinancing their mortgage just when interest rates are at their lowest point in decades. 

How did these people become so financially savvy? What can the rest of us do to catch up to them? 

Here’s how I became a financial wizard in 5 years or less, and what you can do to follow my lead.

1) Career Choice

I didn't have any connections to help me get started, but that was okay. It was the best way for me to learn how to do it on my own. 

I learned about business and built my own company from scratch. Eventually, I became financially wealthy by being an entrepreneur and running my own business. 

Now I teach other people what they need to know in order to be successful. 

1) Research your niche. What do you want to focus on? Are you looking for something specific? Write down 3-5 different niches then look at them more closely. 

2) What are your goals? Make sure you understand what you want before making a decision because it's easier to take action when there's clarity about the path ahead. 

3) Identify your strengths and weaknesses and ask yourself which of these areas are stronger than others. What can you offer that others can't? 

When we're clear about our strengths, we can confidently promote ourselves without worrying too much about our weaknesses as nobody is perfect all of the time.

2) Investing In Yourself

Investing in yourself is the smartest investment you can make. No matter what your profession, it's always beneficial to keep learning and growing. 

Books and blogs are one of the best ways to do this because you have instant access to any information you need without having to pay for classes.

I use my library card all the time, as well as Amazon Prime, Audible, and iTunes University. 

My favorite books that have helped me grow are: Rich Dad Poor Dad by Robert Kiyosaki, The 4-Hour Workweek by Tim Ferriss, and The 7 Habits of Highly Effective People by Stephen Covey.

The extra time invested into myself has been worth it tenfold!

3) Finding Ways To Save Money

I was never the person to clip coupons, but I always found ways to save money. A few examples are: 

1) eating out less and cooking more at home; 

2) spending less on clothes and accessories; 

3) driving my car for longer than expected before buying a new one; 

4) finding deals (i.e., Groupon, LivingSocial); and 

5) avoiding impulse buys. 

There were plenty of other things that I did that helped me make it financially, but those five were definitely among them!

4) Minimizing Expenses

I was able to do so by reducing my expenses. First, I stopped eating out and cooking at home. 

This alone saved me $1,000 a month. Second, I shopped around for lower rent and found an apartment where the rent was only $1,200 per month. 

Third, I cut back on entertainment expenses by going to free events (concerts, comedy shows) or looking for deals (such as free museum days). 

Fourth, when it came time to buy furniture for my new apartment, instead of buying new stuff from Ikea (which would have cost about $2,500), instead I bought used furniture from Craigslist for about $800.

5) Maxing Out 401(k)/IRA Contribution

Maxing out your 401(k) or IRA contributions is the simplest way to build wealth. 

The IRS allows you to contribute up to $17,000 per year ($23,000 if you are 50+) and your employer may match some of that amount. 

While this number might seem daunting, it’s important not to look at it as an expense but as an investment in your future. 

Many employers offer automatic deposits into retirement accounts which make it easy for employees to save a little bit each paycheck.

Conclusion

The key to my success was simply focusing on the things that I felt passionate about. 

The more time and energy that you invest into something, the more you will gain from it. 

You don't need to be an expert at anything, but you should have some knowledge of what you are trying to achieve. 

Constantly learning and challenging yourself will put you on the path towards financial freedom.