If you’re spending more than you make, you are asking for trouble, and it will eventually find you.
That said, there’s a limit to how much money you can save. Many of us have fixed expenses that can’t easily be changed, given the structures of our lives and the places we live. There are also quickly diminishing returns to spending less once you get rid of the obvious excess. How much are you really going to save by turning off lights, air-drying laundry, or taking shorter showers?
The following advice is meant for people who know their spending is already reasonable. They know where their money is being spent, they don’t have short-term debt, but they’d like the future to have more margin than the present.
Keep being wise on the spending front, but carve out a little time and energy to think about your financial upside. If all you ever do is cut and never grow, you’re putting a cap on your financial future.
Once you’ve made yourself resilient with low expenses and no debt, the next step is to make choices that expose you to unexpected gains. Those choices don’t guarantee success, but if you stay in the game long enough with the right exposure, there’s a good chance things will happen for you.
6 Practical Strategies to Stack Financial Odds in Your Favor
The following opportunities hinge on the idea that good things tend to happen to people who deserve them if they see them through.
1. Keep Learning High-Value, In-Demand Skills
The best financial opportunities come to those who are prepared. You don’t know what the future holds, who you will meet, or what you’ll be doing, but having in-demand skills gives you a chance to be in the right place at the right time.
2. Own a Tiny Piece of a Real Business
Should you ever get the opportunity to invest a portion of your wealth in a bona fide, local business that you understand, alongside people you trust, do not waste it. Owning a portion of a growing, cash-flowing business is one of the oldest and most reliable ways to grow wealthy.
3. Build Relationships With People Who Build Things
Money aside, builders and real-world risk takers are some of the best people you’ll meet. You should want to be around these kinds of people because they will make your life more interesting and push you to be better yourself. If you authentically become friends with this group, you’ll likely find yourself a different person, with a new set of opportunities.
4. Always Have a Side Project or Hustle
Most side hustles don’t amount to much financially, but they teach you new skills and attract other builders—the kinds of people I was describing in my last point. Each project is a small lottery ticket with virtually no downside—if you enjoy the work—and unlimited upside.
5. Place Many Small Bets, Over One Big One
Many who yearn for wealth get impatient and, in an effort to get rich fast, place huge bets with great upside, but low probability of panning out. Don’t be foolish and blow your hard-earned money on things you can’t control. Maintain a large personal safety net, then invest aggressively in many small bets, and double down when you find something that works.
6. Cultivate a Reputation as a Doer and Good Under Pressure
There are two paths to greater wealth: the first is to become an entrepreneur yourself, and the second is to add massive value to someone else who is. Entrepreneurs don’t want to work with just anyone, though—they look for people who get stuff done and who they can count on in a crisis. Turn yourself into such a person, and wait for the right person to notice.
If you develop your skills, hang around builders, work on your own side hustles, and cultivate a good reputation, then eventually, there’s a great chance your income will grow.
All you have to do is not ruin it. Don’t get in your own way by getting greedy and going into debt or spending more than you make. My parting advice: Figure out how to enjoy the journey, whether or not your financial upside ever materializes, and you’ll be rich in all the ways that count, and better able to handle wealth should it arrive.