What I'd Do If I Woke Up Broke (Step-by-Step Guide) | My Proven Wealth-Building Blueprint

Imagine waking up with zero dollars in your bank account, no savings, and no financial safety net. What would you do? How would you rebuild your wealth from scratch? This is exactly the scenario I want to walk you through today, especially if you’re a veteran or a first responder. I’m Bud Evans, a retired Air Force officer, former police officer, and now a real estate investor and coach. Over the years, I’ve developed a tactical, no-nonsense approach to building wealth. These are not just theories — they are real-world strategies that I wish I had known when I was starting out.

Whether you’re just getting started or looking to reset your financial game plan, here’s a comprehensive, step-by-step blueprint to help you take control of your finances and build lasting wealth.

Step 1: Max Out Your TSP or Deferred Compensation Match to increase wealth

The first move you absolutely cannot skip is to maximize your Thrift Savings Plan (TSP) or your deferred compensation plan, such as a 457(b) if you work for a city or municipality. If you’re active duty military or a public servant and you’re not contributing enough to get the full 4–5% employer match, you’re literally leaving free money on the table.

Some financial gurus might tell you to ignore the match because of penalties or taxes later, but let me be clear — this match is a 100% return on day one. No other investment beats that kind of instant profit. Sure, taxes will come when you withdraw, but if you follow the steps I’m about to lay out, you’ll be wealthy enough that paying taxes later is a small price to pay for compounding growth today.

Action Item: Start contributing at least 5% of your paycheck immediately to your TSP or 457(b) and never miss it.

Step 2: Build a One-Month Emergency Fund

Before you start investing, you need a financial safety net. I’m borrowing a page from Dave Ramsey here, but with a twist. Instead of just $1,000, I recommend saving enough to cover one full month of your living expenses — rent, food, gas, insurance, and essentials.

This isn’t about making money; it’s about protecting yourself. Think of this as your financial body armor. Life throws curveballs — a car breaks down, a medical emergency arises, or you lose your job unexpectedly. Having this cushion ensures you won’t have to borrow money or go into debt while you figure things out.

Step 3: Ramp Up Your Retirement Contributions to 20%

Once your one-month emergency fund is in place and you’ve got a little breathing room, it’s time to increase your retirement contributions. Aim to put away 20% of your income into your retirement accounts.

Here’s a smart way to do it: each time you get a raise — whether from your employer or the Department of Defense — increase your contribution by the same percentage. A 2% or 3% raise? Boost your savings by that much.

This strategy takes advantage of compounding interest and dollar-cost averaging, two powerful forces in personal finance. The money you save and invest today grows exponentially over time, buying you freedom and financial security faster than you might think.

Step 4: Educate Yourself on Money and Investing

When I was younger, there was no financial manual handed to me. I learned most things the hard way. Today, you don’t have to. There are countless books, podcasts, online communities, and courses tailored especially for veterans and first responders.

If I could go back to when I was 22 or 23, I’d devour every book on personal finance, investing, and real estate. I’d seek out military-specific financial education to shortcut my mistakes and accelerate my learning curve.

Remember: You don’t have to figure this out alone, but you do have to put in the reps. Consistent learning is a key part of building wealth.

Step 5: Build a Six-Month Emergency Fund

Once your retirement savings are growing and you’ve paid down some debt, scale your emergency fund to cover six months of expenses. This is no longer just about survival — it’s about financial confidence.

Life happens. Maybe you get suspended from duty, face a medical emergency, or have to PCS (Permanent Change of Station). Having six months of living expenses saved means you can stay calm, keep your head in the game, and avoid panic selling or bad financial decisions.

Step 6: Start Investing Outside of Retirement Accounts

Now that you’re financially stable and protected, it’s time to play offense. I recommend putting extra cash into low-cost index funds and dividend-paying stocks. These investments give you instant diversification, low fees, and historically solid returns.

Don’t try to swing for the fences with risky stocks or speculative bets. Think of this as bunting your way to first base — steady, reliable growth that builds momentum and keeps you liquid enough to jump on bigger investment opportunities when they come.

Step 7: House Hack Using Your VA or FHA Loan

For my veteran brothers and sisters, this is a game changer: use your VA loan to house hack. If you’re a first responder, get yourself an FHA loan and do the same.

Here’s the strategy: buy a duplex, triplex, or fourplex. Live in one unit and rent out the others. Your tenants’ rent payments cover your mortgage, effectively letting them pay your house off for you.

If you buy a single-family home, look for one with extra bedrooms and rent those rooms out to friends or colleagues. The VA loan offers no PMI (private mortgage insurance) and favorable rates, making it a powerful wealth-building tool.

Automate your processes and learn property management on the fly. When it’s time to PCS or move, don’t sell your property — rent it out and repeat the process. Slowly but surely, you’ll build a portfolio leveraging the benefits you earned through service.

Step 8: Save Aggressively for Your Next Investment

Every dollar you save from house hacking or investing should fuel your next move. Don’t fall victim to lifestyle creep — that new car, fancy motorcycle, or expensive vacation can wait.

Instead, funnel that cash into more index funds, dividend stocks, or another rental property. Focus on buying assets that generate cash flow, not liabilities that drain your resources.

Every smart choice compounds and moves the needle, stacking your momentum toward financial freedom.

Step 9: Choose and Master One Investment Niche

At this stage, you’re stacking cash, gaining confidence, and building experience. Now it’s time to specialize. Pick one niche and master it. Whether it’s wholesaling, flipping, buy-and-hold rentals, short-term rentals, syndications, or the BRRR strategy (Buy, Rehab, Rent, Refinance), commit fully.

Become a subject matter expert. Get mentorship. Learn the ins and outs before scaling further. For property analysis, I personally use Flipper Force, which offers powerful calculators for rehab and BRRR strategies. (You can check out their free trial and discounts online.)

Trying to do everything at once is a recipe for getting nowhere fast. Subject mastery beats dabbling every time.

Bonus Step: Build a Brand or Business for Leverage

This is where real acceleration happens. Document your journey, share your lessons, and build trust with an audience. Over time, your personal brand becomes leverage.

Why does this matter? Because with a trusted brand, you can raise private money, sell educational products, and build businesses that feed your investing. Brands create options. Trust creates opportunity.

To start, set up a business entity. The right business structure can:

• Reduce your taxes

• Protect you from liability

• Open doors to business funding and credit

I use Prime Corporate Services to set up my LLCs. They offer expert consultations and can get you structured properly.

When you’re ready to tap into business credit, reach out to trusted professionals like Nick D. Fred Rico. Avoid get-rich-quick schemes and don’t get distracted by flashy lifestyles. Financial success is a long game.

Avoid These Common Financial Traps

• Don’t spend more time watching Bitcoin charts than tracking your actual financials.

• Don’t equate fancy cars or toys with wealth — many “rich” people are actually broke.

• Play the long game. Pick your proven lane and protect your downside.

Quick Checklist to Get Started

1. Max out your retirement plan matching.

2. Build a one-month emergency fund.

3. Ramp up your retirement savings to 20%.

4. Read everything you can about money and investing.

5. Build a six-month emergency fund.

6. Invest in low-cost index funds and dividend stocks.

7. House hack using your VA or FHA loan.

8. Save aggressively for your next investment.

9. Pick a niche and master it.

Stack your skills, stack your assets, and stack your freedom. This blueprint is designed to help veterans and first responders build wealth methodically and sustainably. Start today, stay consistent, and watch your financial future transform.

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