You might be surprised to learn that becoming wealthy does not require working hard all day every day and changing your lifestyle completely. There are actually some surprising ways to become wealthy quickly, which we are going to discuss later in this article.
Ok, getting to the point..
Here are some major secrets to becoming wealthy:
- If you want to be wealthy, you must focus on making yourself rich. You can’t make anybody else rich (except maybe the little children). As long as you focus on making and saving more money, you will be wealthy – and successful – long before you achieve any specific financial goal.
- Likewise, take good care of yourself by eating well and getting plenty of restful sleep. You can also exercise and get plenty of good entertainment. But make sure you keep your mind active (e.g., think about what you want to do with your time).
- It is very important to take care of your basic needs in order to become wealthy. This involves eating well, having a roof over your head, and having electricity.
- Saving money (and invest it wisely) is also very crucial to becoming wealthy.
- Use the Internet (and other information technology) intelligently. Then you have more time for productive activities, not just for checking e-mail or looking up recipes in cookbooks.
- Ask others for advice about personal finance and how to make money. Then follow their advice. It will make you much wiser than most people who are very wealthy. They never got just smart enough to avoid being taken advantage of by those with real knowledge.
- You shouldn’t wait until you get married or until you have enough money saved up to buy a house before planning your financial future. Start saving now if you want to be wealthy. Whether it is saving money, getting a better job, starting a business, or buying investment real estate, the sooner you get started the more time the investment has for compounding and earning returns on your behalf – i.e., the greater your returns will be.
- Do a good job for others and always honor the commitments you have made. Not only will you have a reputation for being a man or woman of integrity, but it is also a lot easier to make money if people trust you.
- Learn from experience and other people’s mistakes. Apply the knowledge that works best for you. You probably won’t need to make big life changes in order to get rich – after all, getting rich should not require a major lifestyle overhaul (i.e. becoming a monk or moving to another country).
- You can become wealthy by learning about money, gaining experience making it work for you, and taking your own financial responsibility seriously. The time you spend becoming an expert will pay off in the long run. Don’t just trust your life savings to anybody!
- Take advantage of any opportunities that present themselves to you (as long as they are legal). There are plenty of good deals all around us – if we will recognize them when they come our way and not wait until the “right” circumstances present themselves before acting.
- Use an objective algorithm to make decisions about money and investments (i.e., don’t let emotions and “gut feelings” influence your decision-making). Taking the time to review all the evidence and data is necessary before making a financial decision. The more information you have, the less likely you are to make a mistake.
- Always consult a professional adviser before making any major financial decisions. (e.g., to buy or sell a house or start a business). The more you know, the less likely it is that you will make an expensive mistake.
- Keep the big picture in mind when making decisions about where to invest your money or what financial products to buy. You don’t want to invest all of your savings in one new technology stock like some people did (and lost most of their money as a result).
- Save and invest some money for retirement (through a 401K or similar plan). Do not allow yourself to be lured into efforts that promise huge returns over a short period of time (since the chances of losing your investment capital is very high if this approach is used).
- Never spend all of your money at one time (e.g., on a big purchase like a new car or house). More especially if you are using credit cards (interest will continue to accumulate until you pay off each month).
- To become wealthy, keep accurate journals of your expenses, earnings, and debts. Do not hide anything from yourself or anybody else.
- If you want to be wealthy, pay yourself first before spending money on anyone else (i.e., before paying your bills). But make sure you also pay your bills on time and in full each month. (or better yet, before they are due!)
- Avoid the “get rich quick” mentality. You can’t get rich quickly unless you are already wealthy. To get rich quickly without being affluent, you have to get lucky. And even then there is no guarantee that it will last long enough to become wealthy.
- In order to become wealthy, set realistic financial goals that are within your reach. You should always be able to pull the plug on any investment if necessary without too much financial difficulty.
- Even if you make intelligent business decisions, realize that you will make mistakes (even if you are wealthy) and don’t let those mistakes impact how you save and invest for the future.
- Live below your means. Don’t live beyond your means or take on lots of debt (e.g., through credit cards or loans) that put a heavy burden on your shoulders each month – especially not if it is difficult to pay off those debts and interest payments each month!
- You would be wealthy if you spent less than 100% of your income each year so that some money would be automatically available each month for savings and investment.
- Invest and save some money each month. The more you put aside for the future, the greater your chances of meeting your goals – and it doesn’t cost anything but our own time.
- Paying off high interest credit card balances every month is a great way to be wealthy (e.g., avoiding getting into debt as much as possible). The sooner you start paying off your credit card balances, the safer it is that you won’t have to pay high interest rates on those debts for very long.
- Know how much money you are really making so you can pay yourself first before paying your bills each month. You can use computers or accounting software to track this information for most of us (especially if we make monthly payments through our bank accounts).
- Keep a small emergency fund and a larger savings account to guard against financial emergencies (such as job loss).
- When you want to be wealthy, create a budget for yourself. If you do so you always know how much money goes in and out each month. Then, don’t buy useless things that will empty your bank account!
- Treat your savings account like a bank that makes money for you each month through compounding interest (if you can). Every little bit helps in the long run!
- If you want to be wealthy, don’t buy anything unless it is an investment or will make you more productive or more comfortable in some way. The more you buy, the less wealthy you will become in the long run.
- Do not spend money on showy things that you can’t afford (no matter how impressive your friends think it is). In the long run, the only wealth that means anything comes from investing your money in assets that will increase in value over time.
- Save and invest some money each month for a “rainy day” (in case something bad happens to disrupt your income. Do not rely on your credit cards or bank accounts for this protection!
- Take care of yourself so that you will continue to have a healthy body and mind. In the long run, it is not productive to let your health and function decline so that you eventually become dependent on others for basic needs (as we do when we marry and stop taking care of ourselves)!
- Spend time each month thinking about how much money it would take for you to achieve your personal goals.. For many people, this amount is very small – unless they want things like these.
- Investing in stocks and bonds makes people wealthy. You should become knowledgeable about how the stock market works and what the safest ways to invest are. If you don’t, you will probably buy shares of stock when they are too high in price and sell them when they are too low. You’re never making much money this way!
- Become educated about investing in real estate so you understand how it works. This includes learning how to buy rental property, pay off debt on your properties, avoid costly mistakes while buying property, know which properties make more money for less work (and which ones don’t), etc.
- Do not invest or save money in anything that has a “product” attached which replaces common sense and the ability to negotiate and protect one’s wealth. I’m talking about things like investments and savings accounts with banks and mutual funds.
- Don’t invest or save money with “companies” whose only purpose is building assets – no matter how impressive they may look on paper. Many such companies exist (with stock market values exceeding $1 billion). These companies usually wipe out everything except their financial assets – just like Enron, WorldCom, Global Crossing, Tyco International, etc.
- Similarly, if you want to be wealthy, make sure you know exactly how much money you are making every single month. And, make sure your income is sufficient to cover all of your bills each month. You can use accounting software or online bank account statements to quickly and easily do this calculation.
- Stay out of debt as much as possible (e.g., by following the tips in Section 25). Not only is it expensive to borrow money – it is very stressful knowing that you must find the money somehow each month if you want to continue making payments!
- Take some time to learn about all the topics that can make you more money in the long run, such as money management, real estate investing, career planning and others. Check out the suggested books at the end of this book for some good resources.
- Spend time learning about the stock market using the internet or books on how to get rich through investments. Make sure you invest your 401k fund in stocks (to acquire wealth) – not bonds (to protect wealth)!
- Do not invest your retirement account money with many of the retirement investment firms (such as Charles Schwab and Fidelity) available today – since these firms manage assets as if they were banks rather than as if they were wealth builders.
- Do not invest in retirement funds that don’t let you take control of your own investments. Like.. those which require you to invest all of your money into one mutual fund. Or those with a “guaranteed” interest rate and/or set amount of return.
- Understanding the difference between mutual funds, stocks, bonds and other investments and how they are taxed. Mutual funds pay capital gains taxes (at a rate of 15%) when profits are made. Stocks and bonds pay dividends and regular interest (in most cases). None of which is considered “taxable income” until you sell them.
- Do not treat money like it grows or shrinks depending on how much money or debt there is “out there. Learn how to manage your money. Then you can acquire wealth while avoiding personal bankruptcy or making unnecessary debt payments.
- The another key to becoming wealthy is understanding the difference between shares and stocks in the stock market. One is an investment in a company which pays dividends, while the other is an investment which you can trade on different exchanges.
- Know how much money it would take for you to buy a home – especially if this amount is low.
These secrets can be used by anybody, not just people with an extraordinary drive or work ethic. You don’t need to make major life adjustments or pay lots of money for access either. The only thing you will need is the willingness to try something different (i.e., new).
Hope you learned something from the article.