Richard Fain (not to be confused with the popular football player) has used three proven strategies to boost his net worth by more than ten times. Because back then, his net worth was actually rather low. But he also had a desire for that to change completely. So the first thing he did, is to pay himself. He wanted to start saving as early as possible so that he could take advantage of the compound interest that he may earn for the next 20 or 30 years. But of course, the first thing he should take note of is his own budget.
Richard said in one of his YouTube videos, “So I took a look at what I was spending my money on, and I started cutting out things that I really didn’t need. You know, going out to eat all the time. Buying things, spur of the moment, that I never even used. Taking luxurious trips and things like that, that I probably didn’t need to take. Just going out and having a good time. I started cutting some of those things out of my life.”
After he took out what he perceived as unnecessary expenditures, that’s where he discovered that he actually has more than enough money to pay for himself. Basically, from the earnings that he get from his job back then, he took out at least 10% of it and used that to engage in smart investments. And he’s doing it on every paycheck that he receives. No exceptions, no excuses. And he’s been doing this consistently, almost without fail, for quite a while. It’s only possible for him because he has disciplined himself into avoiding any unnecessary spending and luxuries that are possible with his money.
Of course, that doesn’t mean that one should skip on the basic necessities. If you have bills to pay for the basic necessities, of course, you need to pay them promptly. Richard’s not saying that you should drastically cut down on necessities to be able to invest. He’s saying that, if you want to spend on something but you know that it’s not a necessity in the long run, then don’t. Better to invest your money instead. It’s all a matter of developing the mindset. “I get paid first. I take ten percent and invest it to improve my financial condition moving forward.” And yes, using credit cards will only make things much worse for your investment plan.
The second thing that Richard Fain did to increase his net worth, is that he got involved in the real estate industry. What he did is he bought his first home and lived in it for 2 years. And as the value of his property appreciates, he would take that equity and leverage it to buy a second home. Which worked for him simply because the value of any real estate property always increases in value. And he just simply rinsed and repeated what he was doing which greatly increased what he earned, and ultimately contributed to his overall net worth. He never went crazy with investing in real estate, unlike the others, though. At most, the most properties he’s had at any given time is five.
Finally, his third strategy is delayed gratification. Admittedly, it takes a focused and dedicated mindset to be able to achieve this, but as long as you don’t lose sight of your goal (like he did), then you can also pull it off. He may have all the money to buy those expensive cars, go on luxurious vacations, and even buy jewelry (though in my own opinion, jewelry could be considered a good investment). But he never did. He decided that he had to create additional streams of income first before he could spoil himself with these luxuries. So he first started selling luxury watches, then he invested in stocks. Then he used that new income to finally start indulging little by little. But this was after fifteen dedicated years of going without.
Today, Richard Fain makes money from virtually every online method there is. His primary source of earnings is from his own YouTube channel and ad revenue, but he also has delved into affiliate marketing, financial mentoring, stock market, and even more. As for his own net worth, he hasn’t publicly revealed it anywhere, but based on everything he has shared on his YouTube channel, it sounds like it’s around five million dollars. And his YouTube channel alone has a net worth of over $123,097. Apart from that, his content is actually informative. His topics on stock marketing investing, real estate investing, credit card arbitrage, and watch flipping are worth watching. You can also enjoy some automotive eye candy with his videos.