10 Ways That I Built My Wealth (Part 1)

1. Stock Compensation: The Most Overlooked Wealth Builder

Companies are required to pay you for the services you provide to the company usually on an hourly or salary basis. Sometimes, you are rewarded with an annual bonus for your work during the year as well. What is unique to most companies is if the company is publicly traded (on the stock market) then they also provide you with a set amount of shares or dollars that vest (become yours) over a specific time period.

2. ESPPs: The Easiest Wealth Hack Most People Ignore

Employee Stock Purchase Plan is a plan that allows you to buy your company stock at a discount. The limits of this program is the lesser of $15,000 or 25% of your gross salary. The way it works is you set a % that you want taken out of each of your paycheck and the money is held over 3 months. At the end of the 3 month period, the money is used to purchase your company’s stock at a discount. The discounted amount is set by your employer which can be up to 15% off. It is called a discount, but really is an automatic gain. Depending on your investment strategy you can sell the stock or keep the stock.

If your company’s stock price is $100 at the end of the 3 month period, then you buy it for $85 with an automatic gain of $15.

3. Deal Hunting Is a Lifestyle

Many people leave money on the table because they stay silent. If your order is wrong, your bill is incorrect, or your product breaks easily, often companies will issue refunds, send replacements, or offer credits because they would rather keep you as a customer than lose you.

For example, Alaska Airlines has a commitment that if you do not receive your bags at the baggage carousel within 20 minutes, you can receive airline points. Imagine how many times bags don’t arrive within that timeframe and people never claim it.

People also underestimate the $5 here and $10 there. It may seem small, but that money adds up to what could have been a weekend getaway, extra car payment, or invested for the future. Small savings are still savings and they compound over time.

Use your birthday deals! Most brands give free meals, free desserts, discount codes, or bonus rewards during your birthday month. If you’re already spending, you might as well take advantage.

Being loyal to specific companies has its perks. Consolidating your spending with certain brands can unlock personalized rewards, higher-tier benefits, free shipping, and exclusive offers. Spreading your spending everywhere often means missing out on the bigger benefits.

4. Market Losses Are Not Real Until You Sell

When the market goes down, it is difficult to watch as it feels like you are doing something wrong. When in reality, you have not lost anything until you sell your investments. The value on the screen may seem low, but the shares are still yours. Just have to remember that the stock market moves up and down. They are always going to be daily winners and losers. Selling during a downturn is what turns a temporary decline into a permanent loss. Patience is what allows recovery and growth over time.

Take a look at the S&P 500 which is an index of the top 500 publicly traded companies. In February 2020, before the pandemic, the index was priced at 3,265. Two months later it was down by almost 1,000 points. People were losing money, people thought it was over for the stock market, panicking and taking their money out. It took 6 months for it to bounce back and today it has more than doubled.

Yes, the market goes down, but it also goes up.

5. The First $100K is Painful

The first $100,000 requires discipline, consistency, and sacrifice. You are building momentum from nothing and learning how to stay committed. Mistakes are often made by the earlier you make them they become lessons that pay off later. Progress can feel slow in the beginning because your money relies on how much you put into it. Once you reach $100,000 your money starts working for you and the compounding becomes more evident.

It took me 3 years to hit my first $100k, then 1 year to hit $200k. Take the time to learn good habits and patience that last a lifetime.

Check back in 2 weeks for my additional 5 money takes!

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