George Kamel - How to Become A Millionaire Starting with $0

Episode Date: November 17, 2023

How would I build a million-dollar net worth if I started from ground zero today? Here are 10 things I’d do—and spoiler alert, none of them involve a get-rich-quick scheme. Links:  5 Side Hustles I Used to Build Wealth Investing for Beginners This episode is brought to you by BetterHelp. Give online therapy a try at https://www.betterhelp.com/george and get on your way to being your best self. Preorder George Kamel’s new book, Breaking Free From Broke, and get more than $100 in FREE bonus items. EveryDollar budget deal: I love a good deal, and when you sign up using this link, I’ll hook you up with a 14-day free trial and $15 off your first year of the premium version of EveryDollar. Learn more about your ad choices. Visit megaphone.fm/adchoices

What's up guys, I'm George Camel, and if you're watching this channel, you've probably also seen some videos from other millionaire personal finance YouTubers who attempt to start from scratch and become wealthy all over again. Now, they might start off dumpster diving or flipping free Craigslist funds for a profit, and then work up from there until they're making a whole lot more money. And it's a really cool concept, and they can give you some good ideas for how to make some extra dough. But there's usually something missing in these videos. Me. JK. I'm not trying to spend a lot of time in dumpsters these days. I'm talking about the high-level, big-picture millionaire mindset things that will help anyone reach millionaire status without getting lucky and without dumpster diving.

So why am I the one to talk about this? Well, my wife and I are net worth millionaires, and we got there without any drop shipping, ATM buying, arbitrage, life hacks, shortcuts, or trust funds. So in today's video, I'll share some things I would do to build back a million-dollar net worth if I had to start over from zero. And they don't involve selling old Krusty Kregsles' couches. Well, one of them maybe does. But first, subscribe to the channel, like this video, and share with all of your friends who have that old crusty couch they need to get rid of. Tell them to DM me.

I'm about to make some profit. Don't worry, Coach. I got you back. Okay, let's pretend that for some reason I had to start over with zero. That'd be a sad day. Here's the scenario. In 2029, Earth has been ravaged by the war between the malevolent artificial intelligence Skynet and the human resistance.

Skynet sends the T-1,000, an advanced prototype shape-shifting, Terminator made a virtually indestructible liquid metal back in time to kill resistance leader John Connor. Wait, I'm now realizing this is the exact plot of Terminator 2. But hey, that's one way to get to $0 in my defense. Okay, in this scenario, I still have my family. Thank God. I have a job. Thank God.

And starting from $0 means that we have no debt, but we don't have anything in the bank. It also means we have no assets like a house or an expensive French bulldog. Actually, scratch that. Those are liabilities. Huge liabilities. So here's what I would do to become a millionaire again if I had to start over from scratch. Number one, align with my spouse on money. This is number one on the list because it's huge and people often don't think about it.

According to a Ramsey's solution study, money is the number one issue married couples argue about. I'm guessing number two is who's going to win America's Got Talent. Either that or beard trimming's in the sink. She never cleans those up. It's unacceptable. If you and your spouse aren't working toward the same money goals, you're going to have a really hard time building wealth, which brings me to number two.

Create a financial goal. I love this quote. If you aim at nothing, you'll hit it every time. Now that's a quote from Zig Ziglar. Not to be confused with Stick Stickly. If you know, you know. But seriously, setting a financial goal is super important. It can be short term like saving up for a trip to Lake Titicaca,

or long term, like becoming a millionaire. But make sure you're working towards something. If I were starting from zero, my first goal would be to save up an emergency fund as quickly as possible. And here's the thing. Your goal should be specific, measurable, and have a deadline. It should also be your own goal, not someone else's. Write it down and put it somewhere you'll see it often, like the bathroom at Taco Bell. For example, I want to save $17.76 in an attempt to try everything on the cravings value menu at Taco Bell by December 31st. Now, that's a goal.

It's specific, it's measurable, and it's written down. But if that's your goal, get some help. Number three, have a why. This is what keeps you going on the hard days. Maybe you want the best for your family. Maybe you want to be able to give outrageously. Maybe you want to own the New York Jets. We're pulling for you, Gary V. I'm just sewn into the Jets.

Whatever your why is, it has to be stronger than your excuses. Because there are going to be days where you don't feel like sticking to the budget. What's my why? None of your beeswax. Nobody asked you. You're asking me? Not telling you. Number four.

Avoid debt. Plain and simple. Okay, debt is a thief. It's hard to build wealth when a huge chunk of your paycheck is going out the door to pay the people you owe money to. So if I'm starting over, no consumer debt. I wouldn't use credit cards. I wouldn't take out any car loans. None of that crap.

I'm going to cash flow my way to millionaire status, no matter how hard it is. Ain't nobody got time for debt. I got bronchitis. Number five, increase income. Now we get to the money-making part. Okay, this is what most of the millionaire starting over videos focus on. If you've got a full-time job with a solid income, you don't have to stop there.

And I've lived this out. So, for example, I've got some experience in marketing and music and emceeing live events and of course personal finance. So I would start looking for side hustles in a few of those areas. Now remember, if you've got $0,000, you've got to get some extra money coming in ASAP. Now, some of you might feel like you're underpaid at your current job. So for you, it might be time for a job change or even a whole career change. And that might mean picking up new skills or getting some education.

And by the way, I did a whole video on side hustles that I used to build wealth and I'll drop a link below if you're interested in that. This episode is sponsored by BetterHelp. Hey guys, it's George. You knew that. Sometimes this time of year can get a little rough. The sun goes down sooner. You don't know whether we wear long sleeves or short sleeves.

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Visit betterhelp. slash George today to get 10% off your first month. That's BetterHelp.com slash George. All right, let's get back to it. Number six, avoid lifestyle creep. What the heck is lifestyle creep? Well, it's when your income goes up and your spending creeps up to meet it.

You might not even notice it happens. You make more, you spend more. So if I'm starting from scratch, I'm trying to build my net worth as fast as possible, which means there is no room for lifestyle creep. So how do you fight back against this by sticking to a zero-based budget, by living on less than you make,

and actively trying to not give a flying flip about how big my friend's houses are or what kind of cars they drive. So here's what that means. You get a raise, pretend you didn't, and use that extra margin to build wealth instead. Number seven, build an emergency fund. The emergency fund is crucial to building wealth. Now, it sounds counterintuitive because it's just a savings account sitting there. But this is defense while investing is your offense. So if an emergency comes up, you don't want to derail your financial goals to cover it. so I recommend having three to six months of expenses saved in a separate savings account as a buffer between you and life.

Your emergency fund is insurance, not an investment. Do not use this for investing. Only use it for true emergencies that are urgent and necessary. And by the way, brunch with the boys doesn't count as an emergency. And yes, that's boys with a Z. It's on you, bro. Number eight, invest in retirement. As soon as I had a fully funded emergency fund,

I would start putting money into tax advantage of retirement accounts like a company, 401K or a Roth IRA. Now, if you've been getting your financial advice from TikTok, you've probably seen the 401k getting a whole lot of hate, mostly from shady whole life insurance salespeople. Don't listen to them. They're trolls who want to rob you of your money. And according to our millionaire study, eight out of ten millionaires said their employer retirement plan was the key to hitting millionaire status. Not one of them said, I hacked this whole life insurance plan, and that really was the key to help me build wealth. It's not happening. So here's a really simple five-word investing strategy to make this easy for you.

Match beats Roth beats traditional. If you want me to break that down, check out my video called Investing 4 Beginners. I'll drop a link below to that. Moving on to number nine, buy a modest house. My wife and I bought a modest town home in 2019, and with the housing market going crazy in the last few years, the value went up dramatically. And this is one of the things that propelled us into millionaire status. So if I were starting over, as soon as I had enough saved for a down payment, I would buy

a modest house. Now, a modest house in 2023 looks a little different. it's still going to cost you a pretty penny. But just because the average home price is $400,000 plus, it doesn't mean you need the average $400,000 starter home. That means there's a whole lot of them that are cheaper than that. And you might need to think long term. You might need to adjust your expectations

and maybe get a condo or a townhome or move a little further away from the city for now. And always go with a 15-year fixed-rate mortgage where the payment is no more than a quarter of your take-home pay. That way, you're not going to be house-poor, and you can still hit your other financial goals. And if you do it this way, you're going to build equity faster, pay way less interest, and pay off that house super early. And by the way, your house is an asset.

So each mortgage payment you make contributes to building your net worth. So when you're ready, get yourself a modest house, listen to some modest mouse, and we'll all float on, okay? Number 10, be patient. Now, you probably don't want to hear this one, but it takes time to grow wealth. Remember my financial turnaround story? It took 10 years. Now, 10 years may sound like a long time for a lot. of you. But 10 years is going to be here whether you like it or not. So what are you going to do

today? What are you going to decide to do that you'll look back on 10 years from now and be grateful you did? And here's what I found. Most people overestimate what they can accomplish in a year and they get real down on themselves. But they underestimate what they can accomplish in a decade, let alone 30 or 40 years of investing. It takes time to finally see compound growth work its magic in your investment accounts. It takes time to get out of debt and pay off your house and grow your career and income. But it is so worth it, and it all comes down to setting those goals, having that why, and staying focused. And by the way, if you want to learn more about this, I've got a whole chapter in my new book, Breaking Free from Broke, called Wealth is Patience.

And if you want to get the book, it's on pre-sale right now. I'll drop a link in the description below. You're going to love it. You're going to love the way you look when you read this book. I guarantee it. So there you have it. That's what I would do if I had to start over from $0.00. I know I had to fly back. buy those 10 things, but let me know in the comments if you want to hear more about any of them. And maybe we'll do another video breaking it down. As always, make sure to like, subscribe, and share this video with your friends who remember who Stick-Stickly is, okay?

Deep cut from the 90s Nickelodeon era. And also weird. Very weird. Thanks for watching. We'll see you next time.