{"id":42770,"date":"2020-05-21T07:44:26","date_gmt":"2020-05-21T11:44:26","guid":{"rendered":"https:\/\/canadianbudgetbinder.com\/?p=42770"},"modified":"2024-12-28T06:05:09","modified_gmt":"2024-12-28T06:05:09","slug":"creating-wealth-from-zero-using-simple-financial-principles","status":"publish","type":"post","link":"https:\/\/digitalskyweb.co\/canadianbudgetbinder.com\/2020\/05\/21\/creating-wealth-from-zero-using-simple-financial-principles\/","title":{"rendered":"Creating Wealth From Zero Using Simple Financial Principles"},"content":{"rendered":"\n

<\/span>Estimated reading time: <\/span>12<\/span> minutes<\/span><\/p>\n\n\n\n

Creating wealth<\/strong> from zero was a journey from $0 to 7 figures <\/strong>which began by changing how we managed money.<\/p>\n\n\n\n

Creating Wealth Means You Drive The Car Or You Park It<\/h2>\n\n\n\n

You don’t need money to make money, nor are those from generational wealth the luckiest.<\/p>\n\n\n\n

Not everyone comes from generational wealth<\/a><\/strong>, money, or assets handed down from generation to generation.<\/p>\n\n\n\n

I come neither; however, my parents taught me that creating wealth meant making your money work harder for you<\/strong>.<\/p>\n\n\n\n

I’m that guy who grew up with parents who thought real estate investing was an asset, owning a business was a risk, and frugal living was imperative.<\/p>\n\n\n\n

Many would assume the word ‘wealth<\/strong>‘ to be associated with millions of dollars<\/strong>.<\/p>\n\n\n\n

Right away, some of you with that mindset would not even attempt to step into that wealth-making path.<\/p>\n\n\n\n

Why?<\/p>\n\n\n\n

The words ‘Creating Wealth<\/strong>” seems so tricky, far away, and impossible.<\/p>\n\n\n\n

In other words, the lack the motivation<\/strong> to move into the driver’s seat prevents you from creating the wealth you deserve.<\/p>\n\n\n\n

Take Financial Risk Only Where You Feel Comfortable<\/h2>\n\n\n\n

Well, I took that chance and bought my first house at 19<\/a><\/strong>.<\/p>\n\n\n\n

Buying a flat was not only a savvy real estate move; I was jumping into that driver’s seat.<\/p>\n\n\n\n

Creating wealth from zero became my reality when I sold my first flat and bought my first semi-detached house.<\/p>\n\n\n\n

I was at 21 with zero debt apart from my mortgage, under 100,000 Canadian Dollars<\/b>.<\/p>\n\n\n\n

That was a long time ago, ha!<\/p>\n\n\n\n

Luckily, that real estate investment paid off because I earned a very nice profit when I sold it.<\/p>\n\n\n\n

I didn’t get it all; things didn’t go as planned with an ex-girlfriend, but we parted ways happily.<\/p>\n\n\n\n

The Meaning Of Creating Wealth Is Personal<\/h2>\n\n\n
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\"wealth<\/figure>\n<\/div>\n\n\n

Creating wealth was becoming a part of my motivational journey at this point.<\/p>\n\n\n\n

I was starting to realize the benefits of owning real estate and how I could buy and sell for profit.<\/p>\n\n\n\n

My parents were the same way, so I had financial education to save money to buy my first house.<\/p>\n\n\n\n

Although my parents weren’t wealthy, they created wealth that fit their mindset and lifestyle.<\/p>\n\n\n\n

Now that they are retired, they don’t have much to worry about and can still travel and do what they planned.<\/p>\n\n\n\n

Plan Instead Of Planning For Tonight<\/h2>\n\n\n\n

You see, creating wealth from zero means two things to me:<\/p>\n\n\n\n

    \n
  1. You’re planning instead of planning for tonight.<\/strong><\/li>\n\n\n\n
  2. Wealth is as much as you need to put you in a position of financial safety<\/strong><\/li>\n<\/ol>\n\n\n\n

    So, I was always the guy who thought ahead of me because I would watch my parents.<\/p>\n\n\n\n

    They managed a fairly successful but seasonal business, often a financial balancing game.<\/p>\n\n\n\n

    Real estate investments proved to be one of their smartest financial moves, although it came with many headaches.<\/p>\n\n\n\n

    Lastly, frugal living allowed them to live a debt-free lifestyle early as wealth for them took on a new meaning.<\/p>\n\n\n\n

    In some ways, children follow in their parent’s footsteps or go in the opposite direction.<\/p>\n\n\n\n

    Creating Wealth Your Way By Following Your Dreams<\/h2>\n\n\n\n

    Although I had lived through the early years of my parent’s building wealth from zero, I decided on a different path.<\/p>\n\n\n\n

    After I got married, we combined our assets which helped us get to where we are today.<\/p>\n\n\n\n

    We both came from creating wealth from zero since our parents didn’t hand us a cheque to send us on our way.<\/p>\n\n\n\n

    No matter what we did in life, we had to do it ourselves, which meant working two jobs, taking extra shifts, working overtime, saving instead of spending, and watching our dollars.<\/p>\n\n\n\n

    Everything we did together revolved around the fine print, research, and ensuring what we were buying was the best deal.<\/p>\n\n\n\n

    We’d jump on any opportunities where we could earn extra money.<\/p>\n\n\n\n

    Examples would be focus groups<\/strong> and gift cards or cash for giving our opinion<\/strong>.<\/p>\n\n\n\n

    There was a point where we were being called for a focus group earning $100 each, sometimes more every month.<\/p>\n\n\n\n

    We’d even test food products for $75 a session that lasted only 20 minutes.<\/p>\n\n\n\n

    I know, right? <\/strong><\/p>\n\n\n\n

    Who wouldn’t do that?<\/strong><\/p>\n\n\n\n

    Well, all these little extra miles helped us save money so we could be where we are today, debt-free<\/a><\/strong>.<\/p>\n\n\n\n

    Shifting The Way We Planned To Use Our Money<\/h2>\n\n\n\n

    We were always thinking ahead whenever it came to earning and saving money.<\/p>\n\n\n\n

    When you have money in your savings account, it’s far easier to advocate for future purchases.<\/p>\n\n\n\n

    However, the opposite is true when you aren’t saving money, which we didn’t want to be.<\/p>\n\n\n\n

    How would we make our money work for us?<\/strong><\/p>\n\n\n\n

    These are many of the ideas we considered.<\/p>\n\n\n\n