Smith 
If you’re reading this, you’re probably ready to earn more and build long-term wealth that can change your life. I get it because I’ve been there. I didn’t grow up with much and didn’t understand money until college. Over time, events helped me learn a lot about money quickly, and I discovered I had the right mindset to build wealth—though I didn’t know it then.
You’re already ahead of the game just by reading this. Many people think life happens to them, but if you’re diving into financial content, you’re ready to take control, and that’s a great start.
Changing Your Mindset: Fixed vs. Growth
To move forward, you’ll need a "mindset switch" to think about money differently. A fixed mindset means avoiding challenges and blaming others for your situation. It’s a broken mindset that won’t help you gain wealth. A growth mindset, however, helps you enjoy challenges and find ways to overcome obstacles.
Stop dwelling on past mistakes; they don’t define you. Focus on making the future bigger and better than the past. Letting go of negative feelings and fears about building wealth is crucial.
How to Build Your Wealth Stack
Once your mindset is in the right place, you can start building your "Wealth Stack" piece by piece. Each step is important and skipping ahead usually doesn’t work. Here’s my suggested approach:
Step 1: Get Your CYA Fund in Place
First, build a CYA (cover your ass) fund, also known as an emergency fund. Life happens and surprise bills will come. Start with $1,000 and aim for $5,000 or even three to six months of expenses. Keep this money in a high-yield savings account and leave it alone until needed.
Step 2: Open a Roth IRA – Tax-Free Lovin’
Set up a Roth IRA. You’ll need to research which platform to use and what investments to make, like stocks, index funds, or ETFs. Contribution limits for 2024 are $7,000, or $8,000 if you’re 50 or older. This after-tax money grows tax-free and can be withdrawn tax-free in retirement.
Step 3: Start a Personal Equity Fund
This might sound cheesy, but a Personal Equity Fund is crucial. This is an investment in you. Use it for anything that helps you grow, such as courses, conferences, books, or certifications.
Step 4: Open an Investment Account
Learn about investing by doing. Open an account on a platform like Robinhood, Ally Invest, or M1 Finance, and start small. The experience will teach you what works for you and how to build a robust investment strategy.
Step 5: Open a Self-Directed 401(k)
Once you’re self-employed or own a business, consider opening a SEP IRA or Solo 401(k). These accounts allow for higher contribution limits, letting you invest more each year and take advantage of substantial tax benefits.
Step 6: Protect Your Assets
Insurance is crucial. Ensure you have adequate health, car, and home insurance, along with life insurance. Consider umbrella insurance for extra protection. This safeguards the wealth you’re building.
Step 7: Create a Self-Managed Income Producing Asset
This is the ultimate goal—an asset that provides income for life. It can be rental properties, dividend stocks, a product you sell, or a business. Initially, it may require a lot of work, but over time, it can become more passive.
What Should You Do Now?
Check where you are in the Wealth Stack and start from there. Don’t delay building wealth. Your future won’t wait, and the life you want is out there.
Bottom Line – The Wealth Stack: 7 Assets [REQUIRED] for Financial Freedom
Building upon the ‘Wealth Stack’ is essential for financial freedom. Each step, from the emergency fund to a Self-Directed 401(k), highlights the importance of learning, planning, and risk management. Investing in yourself is the most valuable asset, as the journey to financial independence is both monetary and mental.
