28-year-old shares 3 wealth tips that helped his family go from welfare to millionaires

May 10, 2021

4 min read

This story originally appeared on Black company

After moving from welfare to a millionaire at age 25, Alfred Nickson has dedicated his career to educating thousands of African Americans about wealth creation.

Today, the 28-year-old financial expert has mentored more than 100 six-figure employees and withdrew her mom.

“Wherever you are, be ready to rock the bat,” Nickson says in an interview with Black Enterprise. “You can’t hit a home run if you don’t swing. For me, I put myself in a position not only to swing the bat, but I also wanted to put people in a position to win. So I put people on the base.

He continued, “When I swing the bat, it’s not just me hitting a home run. I hit a grand slam. This meant that everyone who was on base and in position was able to come home and get a taste of success. I encourage everyone to swing the bat so you can hit your home run as well.

Nickson began exploring home businesses shortly after high school. The young entrepreneur earned a total of $ 1,500 during his first three years of entrepreneurship. Despite his lack of funds and people telling him to consider finding a “real job” and going to school, he continued.

In his fourth year in business, Nickson achieved his first six digits by leveraging his passion for financial literacy. A few years later, Nickson hit the million dollar mark.

For anyone looking to put themselves in a better financial position this year, Nickson encourages people to think outside the box and do these three things.

1. Go from well-being to wealth starting with the assets

Knowledge is power. When you know where you stand financially, you can figure out exactly how much money you need to get to where you want to be.

Nickson suggests creating a list of everything you own. This list represents your assets.

“It could be tangible items like a vehicle or jewelry, stocks, bonds or life insurance policies,” Nickson explains in an email. “Even a pair of gold earrings can be added to your assets and is better than no assets at all.”

Each month, Nickson meets his team to get a better picture of his net value. This number represents what you own (assets) minus what you owe (liabilities). It’s the magic number rich people use to assess their financial health. Nickson also suggests having a good tax strategy so that you can keep more of the money than you earn.

2. Take out life insurance

After seeing so many people in his community rely on GoFundMe, Nickson decided to educate more people about life insurance.

“Who needs a life insurance policy? Everyone.”

Life insurance shouldn’t be limited to death benefits. It can also be used as wealth creation strategy.

“Choose between whole life insurance or term life insurance,” says Nickson. “Term life is more valuable and generally costs less per month. Both will give your loved ones up to millions of dollars when you die. ”

Along with life insurance, Nickson says wills and trusts should also be part of your financial plan.

3. Earn extra money to go from welfare to wealth

Nickson recommends starting a home business because the infrastructure is already there. He says barriers to entry are low and anyone can start with as little as a few hundred dollars. The best part is that you can start making money right away. Your pacing test might get you started.

In his first year, Nickson hit the six-figure mark. The second year he hit over half a million dollars. In his third year in finance, he earned his first million dollars.

How to start your path to a home business? Identify what excites you.

“When you’re passionate about something, you put your best foot into it,” Nickson says.