hello alexers and welcome back to a
special
multi-part series that we're going to be
doing on the financial journey of going
from poverty to wealth
do not skip this intro this is going to
be an honest conversation
focused on the fundamentals the things
you need to get right
otherwise you'll be trapped in
generational poverty
nobody can choose where and to whom
they're born to
but if you do everything right we can
choose
where and how we die this premise of you
being able to alter your destiny
is at the core of every person who ever
got out of the trap of poverty
this series will take you through the
complete journey from poverty
into the middle class first and then on
your way to riches
this piece will focus on the very start
how to force your way
out of poverty a study by the brookings
institute
shows the three main factors that
guarantee poverty living as a family
of four once you're over the age of 30.
these are
one not completing a high school
education
you know our position on the education
system but if you're starting out poor
the straight path out is through
traditional education systems
you're struggling you don't have the
luxury to look down on school
2. children outside of wedlock early on
in your life
an early pregnancy can take the wind out
of your sails even more so if the couple
will not stay together
3. lack of wedlock two heads and two
paychecks are better than one
especially as a single parent and
although the marriage part doesn't sit
that right with us
on a macro scale we believe it makes
sense escaping poverty has
two fundamental premises one the minimum
predictable income that is enough to
cover the basics
and two ability to access growth
opportunities
without these two elements one can get
stuck in a poverty spiral
welcome to alux.com the place where
future billionaires come to get inspired
if you're not subscribed yet you're
missing out
but enough with the theory here are the
exact 15 steps you need to take
if you want to force yourself out of
poverty
step one accept that things have to
change
it's time you and yourself have a little
talk sit yourself down and think about
your
life the life your children will live
and what will happen if things remain
the same
contrary to what you're thinking most
poor people get
really good at living the poor lifestyle
they find a rhythm and although it
sounds hard to believe
they get complacent this doesn't mean
they like or
enjoy their lifestyle it just means
they're not in a rush to change
in order for one to escape the trap of
poverty this needs to become
a priority everything about the poor
lifestyle will need to change and for
most people
this is their current identity and of
course they're scared to lose it
the truth is this person needs to die
you'll have to kill your current self
and become someone else
you will have to sacrifice for your
well-being and that of your children
you'll most likely need to sacrifice the
people who are not benefiting your
growth
sometimes these are your friends or even
family members
you cannot help others unless you help
yourself
first right now you're in no position to
help anyone so things need to change
once you understand mentally and
emotionally that you have no other
option but to change
the process finally begins
step two honestly analyze your life and
put everything down
you cannot make any real progress unless
you get a clear
inventory of your life in as much detail
as possible
this isn't about making yourself look
good instead
be brutally honest with yourself begin
with your finances
how much money do you earn and have
coming in how much do you
spend every month break everything down
into relevant topics like
food transportation subscriptions
utilities
entertainment clothing family care
health and so on
yes poverty is more than a money problem
but we get a feeling that money would
solve a lot of the problems you have in
your life right now
so you'll have to make it a priority to
solve money for you
most people have no idea how much money
goes where
if you've never tracked your expenses do
it for 30 days
but do it in a brutally honest fashion
the moment you close into getting the
personal report done you'll be shocked
at how much money you spend
that maybe could be put to better use
either way you need this clear image
because it'll allow you to move on to
the next step
step 3 identify the bare minimum for
survival
this is where you're going to put in
some work go through the personal
profile and identify the minimum
you need to survive you're going to
enter survival mode
this means you'll allocate resources to
only the most
vital parts keep the lights on keep the
water and gas going and some food that's
just good enough to get the job done
and no your spotify or netflix
subscription is not a necessity
the speed at which you're able to escape
poverty depends on your ability to live
as minimalistic a life
as possible i know it's gonna suck but
your life sucks right now anyway
if you want it to stop sucking you're
going to have to make some tough choices
after you identify the bare minimum for
survival
you're ready for the next step
step 4 cut everything else out for at
least
6 months this is the part that people
don't want to do
it's also the reason why people never
escape poverty
growth is the result of sacrificing the
present
for a better future and most people
don't want to sacrifice
anything they want all the upside
without any effort or pain on their
behalf
which is why years go by and nothing
changes
no matter how much you try to attract
money into your life
send out positive thoughts and prayers
one thing is certain
jesus ain't coming to pay your rent so
be brutal with yourself for what do you
really have to lose six months of
relative misery for a shot to have a
better life long term
you'll get out of this situation by
making the most out of the resources you
already have at your disposal
give yourself every advantage you can
and rid yourself of everything that's
making your journey
longer and this needs to happen now
the longer you stay in poverty the
higher the price is to get out
this is why some people end up in
generational poverty
they never stop the bleeding your
priority is to spend as little money as
possible
so that with the little that's left you
can begin to build momentum
step five get a job or increase your
work volume
don't allow pride to get into the way of
achieving your long-term objectives
if you don't have a job get one as much
as you want to become a millionaire
long-term you need to focus on the next
six to 12 months of your life you have
to do anything you can
to increase your income if you already
have a job the simplest way to earn more
is to increase work volume
one or two extra hours a day while
living minimally will make a difference
especially if your current workplace
will pay for overtime
remember that everything over 40 hours a
week will be paid
50 more if there are no opportunities to
increase the volume at your current
workspace
use the gig economy you're doing this
for yourself and so your children will
not have to go through the same pain
you're going through right now what
better reason is there to do what you
must
deliver for postmates or glovo or drive
for uber
find a job on craigslist help small
businesses in your area in
any way that gets you paid now
step six prioritize immediate high
interest
debt because you're now spending less
than you were before and hopefully found
a way to slightly increase your income
it's time to address the biggest pains
in your life
debt the system is set up in such a way
it takes advantage of the poor and less
educated
just because you throw a credit card
away doesn't mean the money you owe
goes with it never from this day forward
will you ever
use payday loans again look at all the
debts you have and see which one has the
highest interest
the interest is that percentage in your
contract of which you'll pay on top of
the money you borrowed
if you don't know make it a priority to
find out
almost everything you earn that doesn't
go into your survival
should go to paying off the highest
interest debt you carry
why every day that debt isn't paid you
owe
more and more money debt is the modern
version of chains
as long as you have it you'll never be
free
step 7 save one month worth of essential
money
because you've done the analysis at step
3 you know exactly how much money you
need to survive month to month
we know saving money is not your forte
but this step is crucial
what happens if you lose your job or you
have a medical emergency
without savings you would have to go
more into debt
more chains less freedom more poverty
for an even
longer period of time this is how you
need to think about savings
you have them to protect yourself
against darker times
because you know damn well it's just a
matter of time until they come
you're literally in a race to get this
minimum fund ready as
quickly as possible step 8
pride aside take every handout you can
get
you have no idea just how many systems
are set in place to help you
because the truth is they suck at
letting everyone know about them
if you can eat for free do it if your
neighbor can take care of your children
while you're at work
do it if the city allows you to use
public transportation because of your
financial status
do it you're never too good to ride the
bus or walk to work
especially now when this money can go
toward paying off the bad
debt you've gotten yourself into or it
can be used for your
savings fund use the food stamps don't
buy yourself a ps5 with a stimulus check
find programs in your area designed to
help
one of the most underutilized resources
out there are libraries
you know those buildings you never go
into libraries are extremely cool and if
they were to invent them today the
subscription would cost a fortune
at this stage it's all about making
progress
put your pride aside keep your head down
and keep pushing forward
always remember the long-term game
you're playing
step 9 identify sustainable
opportunities to
increase your income at step 5 you
forced yourself to increase your work
volume
although this gets the job done for
short to medium periods of time it will
take a toll on yourself
if your last focus was to increase the
number of hours
per workday that you can monetize now
it's time to
increase your pay per hour there are two
ways to get this done
one a promotion within the organization
you currently work for
or two a higher paying job at a
different organization
the key word here is sustainable meaning
once you make the switch you can
confidently predict you'll earn more
than you're currently earning for the
foreseeable 12 months
this will not happen on its own you'll
need to use the little remaining time in
your day to look for other employment
opportunities
leverage the good work you're doing to
build trust with your prospective
employers
be honest let them know you're
disciplined and a hard worker and will
be willing to make the switch for a
specific salary
it's easy to scoff at an additional five
dollars per hour but if you're currently
earning fifteen dollars an hour
an extra five would mean you just
increased your work income by 33 percent
some promotions will require you to take
on more responsibility or
quickly build a new skill set and since
this is what will get you out of the
hole
say yes to every opportunity and figure
it out as you go
this is your priority in life you need
the extra income
step 10 start to build good credit in
the words of jay-z
you know what's more important than
throwing money in a strip club
credit the reason the system has you
pinned down and locked into poverty is
because of debt
and credit is just a different form of
debt the more the system
is confident you can pay off your debts
the better terms you'll get
here's how you build good credit fast
pay your bills on time
payment history is the single biggest
factor that affects credit scores and
late payments
can stay on your credit report for seven
years make it a priority to pay them on
time
every single time two make more than one
payment per month
the lower you keep your balance the
quicker your credit goes up
instead of paying it off at the end of
every month pay it off every two weeks
three ask for higher credit limits when
your credit limit goes up and your
balance stays the same
it instantly lowers your overall credit
utilization
which in turn improves your credit once
you show the money people you're good
with money consistently
you're ready for the next step
step 11 refinance long-term debts for
better returns
as long as you carry heavy debt with you
you will never be free
everything you do should be focused on
getting out of poverty and
debt is how poverty is measured in the
modern world
one of the best ways to improve your
financial situation
is by refinancing long-term debts if
you've done everything right up until
this point
you should have no problem getting
better terms when you refinance
this means you can either pay less per
month or pay the same but rid yourself
of debt
sooner than before as of making this
piece interest rates are at an all-time
low because of the economic situation
which means this is a unique opportunity
to simply walk into a bank
let them know about the debts you have
under the bad terms
show them your new good credit and get
it paid with a new debt that is a lot
less
straining on your finances banks will
offer these consultations
for free it's their business to make
sure they can offer you a better deal
than their competitors
use this competition to your personal
gain
step 12 save four months worth of
essential money
by this point your life is starting to
feel a lot better you feel
in control and things are starting to
look up for you
this is where people usually screw
everything up and fall back into old
habits
others will see you doing just a bit
better and immediately try to drag you
back down to where you started
sorry fam i can't afford to give anyone
money right now
no will become your most common word
it's easy to identify
money vacuums people or services that
just want your money
you keep your head down and move forward
you don't
need a better phone as long as yours
still works
even if the screen is cracked at this
stage you don't need to be
cool you know what's actually cool not
being poor for the rest of your life
because you wanted to impress some
people who don't even care about you
don't allow anything to sabotage your
mission
be a person of purpose it worked so far
which is why you finally found yourself
in a position to build some runway
use this position to put aside four
months of essential money
this is your new priority [ __ ] will
inevitably hit the fan at some point
and you need to be ready to deal with it
if you don't all that you've built would
fall like a house of cards and send you
back to the beginning
you didn't come this far just to come
this far
and go back step 13
use free resources to build your skill
set
and monetize that the first half of this
piece
forced you to get things under control
while the second half
got you ready and in position for this
right here
this is how you're going to make the
leap from poverty into the middle class
the marketplace will pay you in
proportion to what you can offer it
you need a valuable skill set that you
can monetize
fortunately for you you live in the best
time in history to do this
you have an entire library of value at
your disposal
for free use the internet to learn
things that people will pay for
you can learn how to restore old
furniture you can learn how to use
microsoft excel on youtube
and literally double your salary learn
how to manage a social media profile
learn how to graphic design this is the
beauty of the age that we're living in
for anything you wish to learn there's
someone out there who's documented
everything
and made it available for free at this
stage
never pay for anything that you can get
for free and pay close attention to the
people who want your money
as a rule of thumb there are no
get-rich-quick schemes there are just
people who will get rich off of you
step 14 become a contractor instead of
an employee
this is where the leap actually takes
place the moment you go from being an
employee to being a contractor
is the crucial point in your trajectory
there are two main reasons why becoming
a business
is better than working for a business
one flexibility
you're not locked into a single revenue
source you can serve the one that pays
you more and more than one client at a
time
two taxes and benefits society has
decided that contractors are worth more
to the marketplace than employees
so it gives them better terms you pay
less in taxes and you enjoy more
freedoms
the day you decide to work for yourself
the marketplace begins to treat you
differently
if you're decent at what you do you'll
make a decent living
but you come from poverty there's a
hunger these other people can't relate
to
this hunger will be your competitive
advantage it'll not allow you to settle
for just
this it'll push you forward sooner than
later you'll find yourself in a position
to expand
and that's when you'll bring in help
step 15 group source your way out of
poverty
by yourself you can force your way out
of poverty and cross the line into the
middle class
but it's all still dependent on you to
keep performing
to be safe you'll need to keep moving up
until you're as far away as you can be
from the life you used to live
that's where you'll need other people to
help you and in exchange
you'll help them do the same people
bring
leverage the collective is stronger than
the sum of its parts
you have your strengths and your
weaknesses if this
new reality you're building is to last
you need to cover these weaknesses and
other people can do that for you if
you've made it out of poverty it is your
responsibility to help
others do the same but be very careful
whom you choose to help because some
will want to be helped to make money
while others will want
yours and will make it their mission to
take it from you
the snakes are in the grassy luxers you
have to learn to deal with them
maybe you're fortunate and some of these
steps don't apply to you
we started out poor but fortunately debt
wasn't an issue
we simply didn't have any money and had
to figure out how to build from that
but the fundamentals remain the same
sacrifice
and prioritizing long term over short
term
which makes us wonder those of you
who've made it out of poverty
how did you escape from poverty tell us
your story in the comments so our
community
knows it is possible next week we'll
continue this journey and break down
what it takes
to never be poor again so make sure
you're subscribed so you don't miss the
notification
and as for those of you who are still
with us you get a special bit of
information
your bonus 18 of all in poverty
learn the above lessons and get out one
in five people born in poverty manages
to move up in society giving their
children an even better opportunity for
upward mobility
here's something you probably don't know
a study by fidelity investments found
that 88
of millionaires are self-made
millionaires meaning they grew up in a
middle class or poor family
only 12 of rich people alive today
have inherited their fortune and their
numbers are dropping rapidly
approximately 41 of self-made
millionaires
come from poor households according to
research done by thomas c
corley that's almost half growing up
poor
sucks but we know the kind of drive it
instilled within us
many of the lessons we learned back then
have paid
dividends over and over you're living in
the most
abundant age in human history and our
economy is on the brink of disruption
the middle class is being shrunk down
and the gap between the rich and the
poor is widening
very soon the world will be split into
halves and have-nots
and this is the time you have to decide
on which side of the split you'll find
yourself
technology advanced education money and
health will all
soon be commercialized to a degree
unseen before
our world is slowly becoming a pay to
win game
we hope you're ready alexers if you are
please write the word
ready in the comments section so we know
you're ready for what's coming
we always value your support remember to
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