Starting Wealth Now!

I recently read a book that summarized in one key sentence the irony into many investing books, and wealth books out in the market. This book is called “The Book On Making Money” by Steve Oliverez. He simply states so many books out there say, if you save a little bit from your paycheck at a time you can then invest it and make up to 10 % returns, well what if you don’t even have an extra $100 to save to begin with?

Years ago, I struggled with this issue. There was a time when I did not know a thing about Robert Kiyosaki, Dave Ramsey, and basic info about our economy and how it works, much less any tips on money management. All I knew was the famous advice from parents, save your money. Well, I have tried that, many times before. I have saved thousands and thousands only to use it on what we all know as liabilities. A nice truck, nice furniture, bla. bla bla. You know what I mean, those desires we just can’t live without (smh).

Well, fast forward to 2015 and I had to start life all over again, new job, new state, new place to live (rent), new everything. This time around, I was going to do something different. I had a new job, modest income, I had transportation, a $2k beater with awd-a must for Alaska. I had an affordable apartment with all paid utilities for $900, very well below what everyone else was paying for a 2 bed 1 bath apt (deals are out there). God granted it wasn’t an apt. I would want to invite friends or family over but I knew it was temporary.

So those basic items were set, the next thing was tackling debt with a vengeance and like a savage. Like Dave Ramsey said, you must be weird with it. There is nothing normal about living off rice and beans for a good cause.

The most important thing was a goal, in order create wealth I had to approach it through many ways. Pay off Debt, increase credit score, save for a down payment and still be able to live with what is left over. Folks, if everything I said was going to be easy everyone in America would own a house and have a good chunk of money in a savings account. Clearly not the case or there wouldn’t be so many new apartment developments out in America. It is absolutely not easy, but then it is absolutely not impossible either!

A year later, I applied for a home loan, I had one goal, but at the right price below market value, pay on a mortgage about no more than a 2 bed 1 bath apartment and live comfortably to save for the next goal. I was more prepared than when I started in 2015. But I did get declined from the bank. My debt to income ratio was too high still and my credit score below the minimum required. Folks, I didn’t give up, I was close to the finish line and I had to cross that line. About 3 months later I was finally pre-approved. This was about a year and a half starting from scratch. I absolutely mean scratch, rock bottom, no light at the end of the tunnel.

Looking back now one of the best contributions in the pathway I took was the 401k plan. I invested well above 10 percent, and the company matched up to 10 percent. This ability to drastically save pre-tax came in at the right opportunity when a mortgage bank asked if I had any savings. Showed them my 401k balance and they were surprised and said that will suffice for the 3-6 months in savings needed for debts.

Folks, the journey is long and hard, I wished I had a simple pathway for everyone to create wealth instantly, there is simply no such thing. There are many paths, many twists and turns. As Dave Ramsey says, “life happens”. All we can do is react and move forward. But start with something, read some books regarding wealth management, read many, you critique their principles, teachings, and ideology and you make the decision where you want to start and how. Be smart, be hungry, and go get it. Start your wealth now!