Finance

Creating Wealth From Zero Using Simple Financial Principles

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Creating Wealth Means You Either Drive The Car Or You Park It

Creating wealth from zero was a journey starting from $0 to 7 figures which began by changing the way we managed money.

You don’t need money to make money nor are those people who come from generational wealth the luckiest.

Not everyone comes from generational wealth which is money or assets handed down from generation to generation.

I come neither however my parents taught me that creating wealth meant making your money work harder for you.

I’m that guy who grew up with parents who thought real estate investing was an asset, owning a business was a risk and frugal living was imperative.

Many people would assume the word ‘wealth‘ to be associated with millions of dollars.

Right away some of you with that mindset would not even attempt to step into that wealth making path.

Why?

The words ‘Creating Wealth” seems so difficult, far away, and impossible.

In other words the lack the motivation to move into the driver’s seat prevents you from creating the wealth you deserve.

Take Financial Risk Only Where You Feel Comfortable

Well, I took that chance and bought my first house at the age of 19.

Buying a flat was not only a smart real estate move it was me jumping into that driver’s seat.

Creating wealth from zero became my reality when I sold my first flat and bought my first semi-detached house.

I was at the age of 21 with zero debt apart from my mortgage which was under $100,000 Canadian Dollars.

That was a long time ago, ha!

Luckily for me that real estate investment paid off because when I sold it I earned a very nice profit.

I didn’t get it all though as things didn’t go as planned with an ex-girlfriend but we parted our ways happily.

The Meaning Of Creating Wealth Is Personal

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Creating wealth was sort of becoming a part of my motivational journey at this point.

I was starting to realize the benefits of owning real estate and how I could buy and sell for profit.

My parents were the same way which is why I had financial education to save money to buy my first house.

Although my parents weren’t rich they were creating wealth that fit their mindset and lifestyle.

Now that they are retired they don’t have much to worry about and can still travel and do the things they planned.

Plan Ahead Instead Of Planning For Tonight

You see, creating wealth from zero means two things to me:

  1. You’re planning ahead instead of planning for tonight
  2. Wealth is as much as you need to put you in a position of financial safety

So, I was always the guy who thought ahead of myself because I would watch my parents.

They managed a business that was fairly successful but seasonal which was often a financial balancing game.

Real estate investments proved to be one of their smartest financial moves although it came with many headaches.

Lastly, frugal living allowed them to live a debt-free lifestyle early as wealth for them took on a new meaning.

In some ways, children follow in the footsteps of their parents or they go in the opposite direction.

Creating Wealth Your Way By Following Your Dreams

Although I had lived through the early years of my parent’s building wealth from zero I decided on a different path.

After I got married we both combined our assets into one pot which helped us get to where we are today.

The thing is both of came from creating wealth from zero since our parents didn’t hand us a cheque to send us on our way.

No matter what we both did in life we had to do it ourselves which meant working two jobs, taking extra shifts, working over-time, saving instead of spending, and watching our dollars.

Everything we did together revolved around the fine print, research, and making sure what we were buying was the best deal going.

Any time opportunities arose where we could earn extra money we’d jump on them.

Some examples of that would be focus groups and gift cards or cash for giving our opinion.

There was a point where every month we were being called for a focus group earning $100 each, sometimes more.

We’d even test food products for $75 a session that lasted only 20 minutes.

I know right?

Who wouldn’t do that?

Well, it was all these little extra miles that helped us to save money so we could be where we are today, debt-free.

Shifting The Way We Planned To Use Our Money

We were always thinking ahead whenever it came to earning and saving money.

When you have money in your savings account it’s far easier to advocate for future purchases.

However, the opposite is true when you aren’t saving money which was a situation we didn’t want to be in.

How would we make our money work for us?

These are many of the ideas we considered.

  • Planning for a family
  • Buying our first house and perhaps our forever home
  • Becoming debt-free early
  • Renovations
  • Buying a new vehicle
  • Investing for Retirement
  • Insurance
  • Generational Wealth for our children

Related: How to start building wealth in your 20’s and 30’s

Becoming Business Partners

There was a point where we were knee-deep into buying a Property Guys franchise and backed out at the last minute.

The cost for the franchise was around $65,000 and a huge chunk of our savings at the time but we were weighing our options.

This also included us packing up and moving to a new city to run the business together.

I’m not sure why we did that but it was one of those things where business risk was a tough call for us.

Seeing what the world is going through right now with COVID-19 is something that many business owners never expected.

That’s part of the risk and many businesses are closing their doors because they just can’t financially keep going.

Creating Wealth With Real Estate

Moving forward on our journey of creating wealth from zero we negotiated a pretty good deal on our house in 2009.

The markets were at a good place for us and we jumped on an opportunity to buy low with a hefty down-payment.

After graduating from school and buying our house earning $5 more than minimum wage which was $9.50 I was hesitant.

Related: How to build your wealth without earning big bucks

Before signing on the dotted line we thought of many what-if scenarios again planning ahead like we always do.

We decided on only buying a house on one income which was mine since I earned less than my wife at the time.

Thankfully, we did that as she lost her job only 3 months into buying our house.

The key is not to get in over your head with real estate even if the bank says you can.

Just don’t do it.

Related: How we became mortgage-free in 5 years

Becoming A Landlord Isn’t For Everyone

Since then we’ve considered buying a second house as a rental house or buying a new house and renting our current home.

We decided not to do this as we weren’t in any position to be landlords nor to we want to deal with being one.

There are many successful people who have created their wealth from being a landlord.

Being a landlord is a great way to pay off a house without putting much into it apart from maintaining it.

The problem is you don’t always get nice tenants and it can turn ugly fast.

We just weren’t up for the game of going to court and dealing with all the renting laws.

That in itself can be a full-time job and it wasn’t feasible at the time for us and still isn’t.

We’re simply not interested.

For us creating wealth at the time did NOT include either;

  • Purchasing a business
  • Buying a rental home

Where did our 7-figure wealth come from?

Related: How we became millionaires early

Creating Wealth Using Simple Tools Available To Everyone

Creating Wealth for us simply took on financial principals that everyone should adopt.

You need to ask yourself what wealth means to YOU.

Write it down and decide if it’s a number, a feeling, or both.

What number would make you feel accomplished or wealthy?

If you haven’t been pushing yourself to the next level but creating wealth is on your radar there’s never a bad time to start.

Below are the ways we created our 7-figure financial portfolio for our retirement and to pass on generational wealth to our son.

1. Stop Spending Money

You probably hear this all of the time and laugh about it because you feel it’s not sustainable.

You’re wrong, because it is and it’s your mindset that is holding you back from achieving your goals.

The fastest way to create wealth is to stop spending money on things you don’t need.

If you want the fast and easy answer making wealth real, that’s what it is.

There’s far more to creating wealth that meets your expectations other than putting the brakes on spending.

When I hear that people plan to cut back on spending money I think that’s great.

What I want to know is what they plan on doing with that money.

This was our first step in creating wealth, stopping the unnecessary spending.

2. Save Money Wherever Possible

We lived for coupon savings as you may have already read throughout this blog.

The savings were amazing and still continue to be amazing in 2020 but often by using online apps like Checkout51.

Just recently in the last year we’ve been diving head-first into cashback apps in Canada.

Our favorite cashback app is Rakuten Canada as it offers us the most money followed by Great Canadian Rebates.

Personally, If you haven’t signed up and shop online for anything, you’re leaving cash on the table.

What a smart move that was for us as the money keeps rolling back into our bank account.

Another way we saved money was by participating in Nielsen HomeScan.

All you do is scan what you buy at the grocery store and you earn points towards gift cards and other prizes.

EASY!!! Right?

3. Create A Budget Binder

Using a budget and then creating a budget binder was a big deal for increasing our wealth over the years.

By documenting what we were spending and saving along with having the data available allowed us to make changes where needed.

Check out my 10 Step Mini-Budgeting Series (We documented the early days of our budgeting journey step by step)

I’ve uploaded the excel budget I designed for our family so you can use it for free as well a printable version for those who aren’t computer savvy.

I’ve also uploaded tonnes of printables for your budget binder to keep things organized.

We were all over the place with our paperwork, receipts, and monthly bills that we needed a system to stay on top of things.

You can check it all out here>>> Free Downloads and Resources

4. Start An Online Business

This was something we never set out to do but it ended up happening right before our eyes.

Canadian Budget Binder was supposed to be a blog about our journey to debt freedom.

What it turned into is a 5-figure business that is growing year after year with many new subscribers.

I didn’t realize the need for financial experts in the frugal living and budgeting industry the way there is.

Personally, if I was on the outside looking in I’d want that transparency in numbers and reality that someone else shares with me.

I hope that’s what we’ve been doing by sharing our budgeting journey over the past almost 9 years.

What I’ve learned about blogging has continually helped me to improve this site and wish I had done it sooner.

There are many lost years of revenue from the beginning that I can’t get back.

What I can do is fix the mistakes and move forward which I have been doing every day.

It’s lots of work, I won’t lie but it is nice to get money deposited while you sleep.

Although this is NOT my full-time job it has become a nice little income that I can continue to build upon.

My future goal for CBB is to take it from 5 figures to six figures although that might take some hard work.

I can do this.

Self-motivation is a good motivator as is support from your online community, family, friends, and fellow bloggers in different niches.

When we retire I hope one day our son can take over CBB and continue to share his knowledge about finance.

If he doesn’t well, I suppose he can sell the blog if we’re dead and gone and keep the profits.

My point here is that starting a blog is a great way to earn extra income.

I’d be more than happy to blog about this part of our financial journey if anyone is interested.

(Just comment below and let me know, ok?)

Related: How To Start A Blog Resources

5- Invest In Tomorrow

By using the simple financial principals that we adopted over the years we were able to put money into our retirement savings.

Not only have we been able to max out our Tax-Free Savings Account right to the start of the program but I’ve done the same with my RRSP.

Both Mrs. CBB and I have always taken advantage of any work-related investment opportunities.

If your employer offers a pension or any type of investment matching program don’t throw that opportunity away.

Find ways to save the money to pay into the program as it will more than benefit your golden years.

6- Learn From The Experts

Even though some people in the online world consider me a financial expert when it comes to frugal living I am humbled by that title.

To be honest, I find constant learning opportunities online to learn from other experts to work on improving my financial game.

Some of my favourites are Globe and Mail journalist Rob Carrick, Canadian Blogger Jessica Moorehouse has an award-winning podcast and Mark from My Own Advisor is my go-to guy to learn about investment dividends.

I also enjoy joining in with successful online woman entrepreneurs such as Jenna Kutcher who is a media marketing expert.

Just recently I joined in on an Enriched Academy MasterClass which is free online.

Of course reading multitudes of online articles, news articles, and on the occasion, a paperback book helps.

These are just things I do when I have the time to continue exploring more about Canadian financial health.

Note: None of these links are affiliates and what I listen to or read.

Your Drive Will Help You With Creating Wealth

The moral of the story is that if you want something bad enough you’ll do whatever it takes.

Stop the whining and pull up your winner’s smile and get working on creating wealth.

Discussion: How were you able to pay off debt and begin creating wealth?

Leave comments below to share with others who may be interested in your journey to debt-free.

Mr.CBB

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One Comment

  1. One comment I would make is that once you start, don’t stop. Be it a slow or fast progression…it’s still progress towards that feeling of financial security that you are dreaming of.

    My second comment is start as you mean to continue. My husband likes to say that our financial plans, which may be different than yours, are absolutely written in stone and that there’s ZERO wiggle room for, “Just this once…” It’s sometimes a hard row to hoe BUT the results are well worth it!

    There’s always going to be some new shiny bauble to try and distract you from your financial plan but once you start a wealth building behavior, be it eliminating debt or saving for the future…don’t stop!

    If you have to have that bauble, find a way to make extra money so you can have it without re-digging a hole of debt. Under no circumstances do you want to tap the wealth building assets or interfere with your building process.

    Extra money does not have to mean a 2nd job, but it could. It could be as simple as a reallocation of funds. For example…lose the cell phone and re-direct those funds monthly towards obtaining the shiny new bauble. We employ this method so that we can afford to replace our car when it it time to do so. For us it’s about shifting some available funds from the WANT category into the NEED category.

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