Renegotiate the interest on your mortgage [You can find a detailed explanation of the above points in the article, “12 Hacks for How to Save Money in Dubai Like A Resident”] Apply these tips to increase your investable cash beyond the standard 20% of your income. Remember, it is not about how much you make but how much you keep.

One of the only ways to get out of a tight box is to invent your way out.” 6. Build an emergency fund Now that you have learned how to save a significant part of your income, the next course of action to build wealth from nothing is to create an emergency fund.

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It’s money you set aside for unexpected expenses like car repairs and unforeseen circumstances like job loss or pandemic-induced lockdowns. When unexpected expenses and unforeseen circumstances arise, there are ways to make matters worse: incur debt and/or sell your investment(s). You pay interest on debt, and when you sell your investment(s), you lose both the amount you sold and the interest from the market exposure it could have earned if you didn’t sell.

Passive income is crucial for those of us learning how to build wealth from nothing. “If you don’t find a way to make money while you sleep, you will work until you die,” famously said Warren Buffett, the legendary investor, and CEO of Berkshire Hattaway. There are two types of passive income — investment passive income (your money does all the work) and non-investment passive income (you do some work on the side).

Embrace passive investing To build wealth, you need to save and then invest. If you have followed the above steps, you are now saving at least 20% of your income and earning more income through other side hustles. Now is the time to combine the two and start seriously investing.

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If you don’t make money to do the work, you will have to do it instead. The problem is that your ability to earn money is limited, and you can’t earn money while you sleep (as Buffett advised). So what are the best ways to turn your money into sustainable wealth? First, putting your money in a savings account is not an investment.

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Apart from that, your money should be in profitable investments that earn good returns while minimising risk. Money in savings accounts earns low-interest rates (less than 1% APR in most cases), and can depreciate when the inflation rate exceeds the interest rate on your savings. Second, timing the market is not a good strategy.