3 Ways to Build Wealth Even Without Owning a Biz
Can I ask you something?
I want to know what comes to mind when you hear the word wealth. What does “building wealth” actually mean to you? Wait wait…before you go I’m asking for a reason.
When you identify what your definition of “wealth” means, then you’ll understand just how it is possible as a traditional OT to build wealth whether you have a business or not.
When I say I’m “building wealth” I mean that I’m managing and controlling my money in a way that it’s working for me, not against me. With healthy money management habits, you can avoid feeling like you’re living paycheck to paycheck, have peace of mind knowing you can afford an unexpected expense, work towards your financial goals and because you have some leftover, be able to even treat yourself every once in a while.
So in case you missed my IG live last Friday where I dived into this, here’s the cliff notes version:
Here are 3 specific ways you can build wealth as a traditional OT
Maximize your earning potential so that you can utilize your traditional income to save money, pay off debt and invest. If you’re not in the position to think about multiple streams of income, passive income, running a biz or pursuing entrepreneurship then your first focus needs to be on earning as much as you can, as soon as you can. There are absolutely ways to earn above the national average even as a new graduate OT. I personally know new OTs earning 80, 90, and even 100k (rare but possible) as a new graduate but you have to be strategic in what you do. You’ve gotta be flexible in either setting or location and understand that sometimes you will have to make sacrifices. That being said, please do not sacrifice your peace of mind, mental health, ethics, morals, standards, or SLEEP for a quick buck. I do not promote this and would never advise it. Start by doing your research on OT salary and what you can expect - and remember to negotiate! Don’t worry, I’m planning another blog post entirely on negotiation tips so stay tuned for that one.
Prioritize your paychecks so that you can reach your financial goals and avoid feeling like you’re living paycheck to paycheck. Your first step here is really setting your financial goals specifically when it comes to saving, paying off debt, and investing. These are the top three areas I recommend coming up with a strategy for and actually knowing your numbers so that you can tackle your goals in these areas. Remember to set SMART goals! Once you know what your goals are, you know what you need to be setting aside immediately from your paychecks. The goal is to have money leftover after you’ve prioritized those wealth building goals (saving, paying off debt, and investing) and your monthly living expenses have been covered. Remember part of building wealth is increasing your net worth (through investing & paying off debt) so knowing how to manage and prioritize your “9-5” income is key.
Learn the principles of investing and explore your options so that you can retire as a millionaire. I know you may be thinking “millionaire? No way” but trust me, it is possible and it’s not as hard as you think. I promise. That being said, you are going to have to put in the work to learn and understand how investing fits into your specific financial goals. Investing is a huge key player in you being able to build wealth using your traditional OT income. As long as you have time on your side and you’re getting started rather soon after you graduate, you’re going to be in good shape. If you focus on nailing down #1 and #2 in this list, then you should have enough money leftover to invest into your retirement account. Your retirement account has a significantly higher rate of return than your savings account which is important to understand. When it comes to investing, time IS money and compound interest is a beautiful thing. I encourage you to first focus on the “what” and the “why” so what does it mean to invest? What does it look like? What terms do you need to know? Why is it important to invest? Why do you need to get started asap? Once you know the what & the why - the “how” isn’t so scary, I promise.
So, there you have it! This is the exact method and strategy I’ve created for myself and the one I’m now dedicated to teaching you about. I could spend hours just talking about one of these points because there’s so much that falls into it.
The point I want to make here though is that you don’t need to wait until you’re a biz owner or making six figures to think about building wealth. You can create your plan now - today, and commit to following it so that you can learn to manage your money, build wealth, and take the necessary steps towards financial freedom.
And if you do decide to pursue business? You’ll be in great shape because you’ll already have a strong foundation about money & wealth building. But if you’re not ready to pursue business? That’s okay, too. Personal finance is personal and you have options. This is one of them.
Let me know in the comments below which step you’re working on and which step you’d love to learn more about!