I was born in one of the poorest villages in Africa. I managed to get myself to Mexico and then build a life that most people will never get.
Therefore, how did I do it? How did someone from a village in the interior of Tanzania manage to pull himself out of poverty and become rich? Here is what I did, and how you can do it too.
Can you become wealthy if you were born into poverty?
In a world where economic disparities seem to widen daily, millions of people aspire to become rich. According to the Credit Suisse Global Wealth Report, the top 1% of the world’s population owns nearly 45% of global net wealth, while the bottom half shares just 1%.
But here’s the inspiring truth: wealth isn’t reserved for the lucky few born into privilege. Take Oprah Winfrey, who rose from a childhood of poverty in rural Mississippi, marked by abuse and hardship, to become a media mogul with a net worth exceeding $2.5 billion. Her story isn’t unique; it’s a testament to the power of mindset, strategy, and action.
Define what it means to become rich
What does “rich” mean to you? For some, it’s a seven-figure bank account; for others, it’s the freedom to travel the world without financial worry or the security to retire early and pursue passions.
Personally, I define richness as achieving financial independence, where your assets generate enough passive income to cover your lifestyle without relying on a paycheck.
This isn’t about get-rich-quick schemes or lottery wins; it’s a practical, step-by-step roadmap grounded in proven principles from financial experts like Warren Buffett, Robert Kiyosaki, and modern entrepreneurs.
Whether you’re a young professional in Mexico City dreaming of financial freedom or an entrepreneur building posterity for generations, let’s dive in. Remember, wealth-building is a marathon, not a sprint, but with persistence, anyone can cross the finish line.
Cultivating the Right Mindset for Wealth
Everything starts with your head
If you study people who changed the history of the world, like Jesus and others, they teach one thing: Master your mind, and you can master your world; everything starts in your mind.
The foundation of any wealth-building journey isn’t in your bank account. It’s in your head. Psychologists and successful individuals alike emphasize that mindset accounts for up to 80% of success.
Carol Dweck’s research on growth versus fixed mindsets reveals that those who believe abilities can be developed through effort outperform those who see talent as innate.
Apply this to finances: A scarcity mindset, “There’s never enough money,” leads to hoarding and missed opportunities, while an abundance mindset, “Wealth is created and unlimited,” fuels innovation and risk-taking.
Consider limiting beliefs that sabotage progress. Myths like “Rich people are greedy” or “Money corrupts” stem from cultural narratives but ignore philanthropists like Bill Gates, who has donated over $50 billion to global causes.
How to Identify and Overcome Limiting Beliefs About Money
Building discipline is key
Successful people, like Jeff Bezos, swear by routines like getting up early, working out, and making plans for the day.
Adopt habits like the “5 AM Club” from Robin Sharma’s book, where you dedicate time to personal growth. Delayed gratification is crucial; the famous Stanford Marshmallow Experiment demonstrated that children who waited for a bigger reward later in life achieved higher success.
In finances, this means saving 20% of your income before spending. Tools like habit-tracking apps (e.g., Habitica) can help.
Fear often paralyzes aspiring wealth-builders. Elon Musk faced bankruptcy with Tesla and SpaceX multiple times, yet he pushed forward, saying, “If something is important enough, you should try even if the probable outcome is failure.” Build risk tolerance gradually: Start with low-stakes investments, like $50 in a stock app. Practice mindfulness to manage anxiety; apps like Headspace offer guided sessions on financial stress.
What is your ‘why’?
Simon Sinek has a book, Start with Why. In this book, he explains why you need to have a strong reason for everything you do.
Anchor your efforts in a strong “why.” Why do you want to be rich? Is it for family security, such as ensuring your children’s education? Do you want to make a global impact by funding charities?
Imagine that the reason you want to be rich is to help your family escape difficult circumstances. Every time you feel like giving up, remember you are the only hope of your family. This realization will motivate you to take action even if you are tired.
Remember, generational wealth starts with one brave person from a family.
Financial Education—Knowledge is Your First Investment
Ignorance is the biggest barrier to wealth
As Benjamin Franklin said, “An investment in knowledge pays the best interest.” Start with personal finance basics: Budgeting tracks income and expenses, revealing leaks like daily lattes adding up to $1,000 yearly.
Use the 50/30/20 rule. 50% needs, 30% wants, 20% savings. Apps like Mint automate this, syncing bank accounts for real-time insights.
Debt management is critical
High-interest credit card debt (averaging 20% APR) erodes wealth faster than inflation. Prioritize paying it off using the debt snowball method, tackling the smallest debts first for psychological wins, or the avalanche method for interest savings.
Credit scores matter too; a good score (above 700) unlocks lower loan rates. Check yours annually via free services like Credit Karma.
How to Build Credit History in a New Country
Understand money flows
Wealth = Income – Expenses + Investments. Inflation, at 3-4% annually, erodes purchasing power, so combat it with assets that appreciate.
Compounding is magic; $10,000 invested at 7% annually grows to over $76,000 in 30 years. Use online calculators to model scenarios.
Learn from experts
Robert Kiyosaki’s “Rich Dad Poor Dad” contrasts employee mindsets with investor ones, advocating assets over liabilities.
Ray Dalio’s “Principles” offers economic insights from managing Bridgewater Associates. Dive into biographies: Charlie Munger, Buffett’s partner, emphasizes multidisciplinary thinking, studying psychology, history, and math for better decisions.
Online resources abound
Coursera’s “Financial Markets” by Yale demystifies stocks and bonds. Podcasts like “Planet Money” explain complex topics simply.
For macro awareness, track trends: The 2008 recession taught diversification; the 2020s tech boom highlighted AI opportunities.
Globally, attitudes vary. U.S. culture rewards risk, while Europe’s emphasizes stability, affecting strategies like entrepreneurship versus pensions.
Commit to continuous learning
Subscribe to newsletters like Morning Brew for daily insights. Conduct annual financial reviews—assess net worth, adjust goals.
Challenge yourself: Read one finance book monthly, starting with “The Intelligent Investor” by Benjamin Graham. Armed with knowledge, you’re ready to generate income, where theory meets earning power.
Subscribe to my newsletter here: https://posteritywealth.com/newsletter/
Generating Multiple Income Streams
Relying on one income source is risky; diversification is key. As billionaire Mark Cuban advises, “Don’t put all your eggs in one basket.”
Start with active income
Maximize your job. I worked in a cooperative world for 7 years. One thing I learned was that people will change roles every 18 months, and each job change will come with a 20 to 30% salary increase. I remember I did this in 5 years; I was able to double my salary.
Upskill
When I was contemplating resigning from my corporate job, I decided to learn new skills. I started to learn about how to build blogs, how to do affiliate marketing, and keyword research.
Such skills allowed me to create digital assets that eventually helped me to make more money than the amount I was getting at my job.
You can start by learning one skill, it could be video editing or writing and post it online. Then you can monetize your content and make money from it.
At the beginning you will make pennies, but if you do your job long enough, you will eventually make enough money to cover all your needs.
Passive income frees time
After maximizing your active income and learning skills to generate side income, you can invest that money to create passive income when good opportunities arise.
Rental properties yield 5-10% returns; start small with REITs (Real Estate Investment Trusts) via apps like Fundrise, requiring just $10.
Dividend stocks from companies like Coca-Cola provide quarterly payouts and aim for a portfolio yielding 3-4%. Bonds offer stability, especially government ones.
Entrepreneurship scales wealth
Starting your own business is the fastest way to create and grow your wealth. I created many businesses in my life, from creating humidifiers (which failed due to a lack of funding) to Uber, a travel agency, blogging, and digital entrepreneurship.
Yes, I had to work harder than ever, but when you start your own business, even if it fails, you will learn more about wealth creation than from any book you can buy, and if you manage to navigate the turbulence that comes with running a business, you will become rich.
Gig economy options
You can Airbnb your spare room for passive income or drive for Uber flexibly. I work as a digital nomad in Mexico, leveraging lower costs while earning globally.
Tax perks
We pay too much tax. That is the truth. I don’t advise tax evasion, but if you can legally pay less, do it.
I work on the internet. I deduct tax in PC, subscriptions, internet, the cost of networking events, etc., speak with a CPA, and figure out how you can legally pay less tax and use that to keep more money for yourself.
Automate with tools
I try to automate most of the things I do, like credit card payments, investments, and my business. Most banks and business tools will let you automate some of the repetitive tasks. These steps will free up time for you to concentrate on doing things that will actually make you rich.
Saving and Investing Wisely
Saving is the bridge from earning to wealth
Build an emergency fund: 3-6 months’ expenses in a high-yield account (4-5% APY via Ally Bank).
Frugality doesn’t mean misery
Cut the cable for streaming ($100/month savings) or meal prep to halve food costs. Track with spreadsheets or apps.
Investing grows savings
Stocks for growth (the S&P 500 averaged 10% annually), income bonds, and crypto for high-risk/high-reward (Bitcoin surged 10,000% in a decade but crashed 70%). Diversify: A 60/40 stock/bond split reduces volatility.
Value investing, per Buffett: Buy undervalued companies, like during 2022’s market dip. Growth investing targets innovators like Tesla, up 1,000% in five years.
Understand risks
You need to understand that there is risk involved with investment. For example, 2008’s crash wiped 50% from markets, but long-term holders recovered. My recommendation is to invest fixed amounts regularly.
Retirement vehicles
401(k)s with employer matches are free money; contribute the max for tax breaks. IRAs allow self-directed investing, and Roth allows for tax-free growth if income qualifies.
Tax optimization
Harvest losses to offset gains, and use 529 plans for education. Ethical offshore accounts (e.g., in the Cayman Islands) for diversification, but comply with laws like FATCA.
Master these, and wealth compounds exponentially, next scaling to ultra-rich levels.
Scaling Wealth—From Rich to Ultra-Rich
Compound interest is your ally
Formula: A = P(1 + r/n)^(nt).
An initial investment of $5,000 at an 8% interest rate will grow to $23,000 over 20 years. Start early; time trumps amount.
Network
Attend conferences and use LinkedIn for connections. I remember once I attended a conference on digital marketing for local businesses.
At that conference, I was able to connect with somebody who offered me $1000 to build his simple website for his local business. It was not a substantial sum, but for me, it served as evidence that networking is effective.
Give away some money
I found out that giving away some money helps me make more. I learned this from my mentor, who is Jewish (I am not).
In Jewish tradition, they give away 10% of their money to charity or people in need; they call it tithing. When I started doing this, my income increased considerably. I do not know the secret behind this, but it works; you can try for yourself.
Expand businesses
When you start making money, you can expand your business. There are many ways to do this; you can start by acquiring your competitors, or you can create a franchise model like McDonald’s.
Innovate
Technology changes rapidly; you need to be able to adapt or run the risk of staying behind. Adapt to trends like AI (ChatGPT’s impact) or sustainability (electric vehicles). Netflix pivoted from DVDs, now worth $200 billion.
Common Pitfalls and How to Avoid Them
Lifestyle inflation
Post-raise splurges erode savings. Fix: Automate 50% of raises to investments.
Bad debt
Avoid payday loans (400% APR). If you have excessive consumer debt, pay it off first before you start to invest.
Emotional decisions
Don’t sell in panics; stick to plans.
One mistake I made was to start a new business every 4 weeks; none of my businesses were able to grow. Avoid emotional decisions; they will kill your wealth.
FAQ: How to Become Rich
How long does it take to become rich?
The time it takes to become rich typically varies from 5 to 20 years, depending on factors such as your starting point, income, and discipline. Compounding accelerates after 10 years.
Do I need a lot of money to start investing?
No! Apps like Acorns invest spare change. Start with $5–10 per month.
Is entrepreneurship necessary to get rich?
Not always; many build wealth via high-paying jobs and investments. But it scales faster.
What if I have debt?
Prioritize high-interest debt first. Use consolidation loans if needed.
Can anyone become rich?
Yes, with education and persistence. Background matters less than actions.
What’s the best first investment?
Consider investing in index funds such as VTI, which offer broad market exposure, low fees, and have historically yielded returns of 7-10%.
How do I handle market crashes?
Stay invested; history shows recoveries. Diversify and have cash reserves.
Is crypto a viable way to get rich?
Cryptocurrency has a high potential for wealth accumulation, but it is also volatile. Limit to 5-10% of portfolio.
What about taxes on wealth?
Use tax-advantaged accounts; consult accountants for strategies.
How can I stay motivated?
Track progress, celebrate milestones, and join communities like Reddit’s r/financialindependence.
Conclusion: How to Become Rich
Becoming rich demands a mindset, education, diverse incomes, smart saving/investing, scaling, and vigilance. Start today, review your budget, and invest $100. As Napoleon Hill wrote in “Think and Grow Rich,” “Whatever the mind can conceive and believe, it can achieve.”
Resources: read a book, “The Millionaire Next Door.”
Disclaimer: This isn’t financial advice; consult professionals.
Your journey to posterity wealth begins now.