7 Steps to Building and Mastering Wealth

7 Steps to Building and Mastering Wealth

Step 1 – Index Fund Foundation
Start simple. Put all your early money into VOO (S&P 500 index fund) until you reach $10,000. This gives you stability and exposure to the market without overthinking.

Step 2 – Long-Term Stocks
Once you cross $10K, shift focus to individual stocks. Keep buying small amounts consistently until your portfolio reaches $250K. And never stop—keep adding, and most importantly, never sell your long-term holdings. These are your foundation.

Step 3 – LEAP Options (Long-Term Calls)
When you have a solid long-term base, open a new trading account with $25K. Only trade LEAP options (long-dated, low-risk bets). Keep positions small—no more than $1K each. Think of this as your “advanced but patient” strategy.

Step 4 – Shorter-Term Options
Open another trading account with $50K. Keep 80% in cash at all times. Use only 20% to trade shorter-dated options. This way, you protect yourself while gaining experience with higher-risk trades.

Step 5 – SPY/SPX Trading (Day or Swing)
This is the final stage, meant only for the most advanced traders. Open a dedicated account just for SPY/SPX options, focusing on day trades or next-day swings. This activity is not for wealth building—it’s for fun, discipline, and keeping sharp once your wealth is secure.

Step 6 – Stay Humble
Success in trading can be dangerous if it leads to overconfidence. Always remind yourself of the journey, the losses, and the discipline that got you here.

Step 7 – Give Back
Teach others. Share your lessons, your system, and your mistakes. Helping others not only keeps you grounded but also strengthens your own discipline.