Welcome to the circus of current affairs, where everyone’s an expert on everything, and logic has taken a permanent vacation. Have you seen the latest trend of blaming inflation on everything from avocado toast to Netflix subscriptions? Trust me, it’s not your streaming habits that are making your grocery bill look like a mortgage payment (Hint: Covid and free money). Amidst all this chaos, here I am, a statistic in the ever-growing number of people who managed to reach a million by the age of 32 by not doing stupid shit.

I take it you want to be a millionaire, too, then. Well, you’re in the right place. Let’s cut through the nonsense and get real about how to get rich. Spoiler alert: It doesn’t involve winning the lottery or discovering a hidden treasure in your backyard.

Instead, it’s about smart money management, saving diligently, and making wise investments. Most millionaires, including myself, got here by being frugal, understanding the power of compound interest, and making informed financial decisions. So, if you're ready to stop dreaming and start doing, let’s dive into the real steps to achieving financial independence.

The Millionaire Club: It's Not as Glamorous as You Think

Contrary to popular belief, most millionaires didn’t wake up one day to find a bag of money under their pillow (Unless you’re the son of Mr. Rich Daddy and you just graduated high school). No, the majority of us got here through good old-fashioned saving, money management, and smart investing. Boring, right? But it works.

Take Warren Buffet, for example. This guy didn’t become one of the richest men in the world by splurging on avocado toast and designer clothes. He did it by being frugal, investing wisely, and understanding the power of compound interest. And guess what? You can do it too.

The Unsexy Basics: What You Need to Do Before Investing

Before you even think about investing, there are a few unglamorous but essential steps you need to take. Trust me, if you skip these, you’ll be setting yourself up for failure.

1. Save $1,000

Investing is about setting goals and reaching them. Because of this, starting by saving $1,000 is great practice. If you can’t do this, then you will have a hard time building wealth (plus this is your starter emergency fund). It’s not much, but it’s a safety net for those minor financial hiccups that life loves to throw at us. Think of it as a financial seatbelt.

2. Kill the Credit Card Debt

Finish paying off all your credit card debt and keep the balance at ZERO every month. If you’re going to use your card for cashback rewards, make sure to track your spending meticulously. This is the one thing in your financial life that should always be at zero. You don’t want to let your bank make 15 to 24% off your balance every month. You’ll never finish paying it and this will kill any investment returns you’re making if you started investing with an active credit card debt.

3. Ditch the Car Loan

Don’t get a car loan and finish paying off the one you have. If your car loan is eating up 20% or more of your salary, it’s time to say goodbye. Get a cheaper car. Trust me, you don’t want to reduce your expendable income for one or two “wow nice car” from people who will probably contribute nothing to your life, ever.

4. Avoid the Temptation of a New Car

If your current car works well and does the job, do not get a new one. I repeat, do not get a new one. The smell of a new car isn’t worth the financial burden.

5. Eliminate Other Debts

Finish paying off any other debts. This might take some time, but it’s crucial. Debt is a ball and chain that will keep you from moving forward financially. The only debt you’re allowed to have is your mortgage.

6. Build a Safety Net

Save for three to six months of your expenses. This is your main emergency fund. It’s there to catch you when life decides to throw a curveball your way, like a job loss or unexpected medical bill.

7. Emergency Medical Fund

Speaking of medical bills, keep a separate emergency medical fund. Health is wealth, and you don’t want a medical emergency to derail your financial plans. I am speaking from experience. I had a 30k fund (that I was going to use for something else) but ended up using it in medical bills in its entirety. I would be dead if not for it.

8. Budget, Budget, and Budget

Understanding where your money goes is crucial. Start by tracking every single expense to see exactly how much you spend and where. Use our budgeting app, BudgetBee, or a simple spreadsheet to categorize your expenses. This clarity will help you make informed financial decisions and cut unnecessary costs. A budget isn’t a restriction—it’s a roadmap.

9. Avoid Unnecessary Spending

With budgeting comes the realization that you spend a lot of money in temporary pleasures you don’t need a little bit too often. Identify them and resist the temptation. I’m not saying don’t have your avocado toasts, but maybe you shouldn’t have them too many times to the point where you have nothing at the end of the month. I’m a coffee lover and making coffee at home saved me about $2k per year. That’s two extra thousand dollars that can go into any equity.

10. Budgeting Tips

Budgeting can be hard when paying with debit cards (Who uses cash anymore? Ah, right, Japan). It’s easy to lose track of how much you’re spending. This is what I do. I open a second bank account with a debit card where none of my deposits go. I then auto transfer the amount of money I will use that month to that account every month. That’s my spending money. You CANNOT, for reasons other than emergencies, use more than what you put here.

11. The Final Step: Start Investing

Only after you’ve achieved all the above, should you start investing. This is where the magic happens. Once you’re free from the shackles of debt and have a solid safety net, you can start putting your money to work for you. You can explore my public investment portfolio to get an idea about what to invest in. Remember to always do your research!

Reality Check and Encouragement

If all this sounds like a lot of work, that’s because it is. But nothing worth having comes easy, right? The road to financial freedom is paved with smart choices, discipline, and a fair amount of sacrifice. But let me tell you, it’s worth it.

You might not be able to impress your friends with a flashy car or a designer wardrobe, but you will have the peace of mind that comes with financial security. And that, my friend, is priceless.

So, buckle up and get ready for the ride. It won’t be easy, but with persistence and smart money management, you’ll get there. And when you do, you’ll look back and laugh at how you ever thought a car loan or a financed trip to Paris was worth it.

Remember, the best time to plant a tree was 20 years ago. The second-best time is now. So start planting those financial seeds today, and watch your wealth grow.