Most, if not all people reading this desire to be rich one way or another. There is just something about reaching Financial Independence and not having to worry about money. So how do you get rich quick? Here is a step-by-step guide to getting rich, realistically.
Getting rich will never be overnight. Of course, there are stories out there that showcase people that have gotten rich overnight through some miracle or dumb luck. I’m here to tell you that it almost never happens that way.
Instead, getting rich is a journey. That journey is one that you have to take on your own, and is a bit different for everyone. So, instead of waiting for luck to come knocking at your door, I’ll show you how to become rich instead.
All you have to do to get rich quick is to simply follow these steps, and follow them consistently.
1. Educate yourself
I will start this one off with a quote. As Warren Buffett said, “The more you learn, the more you will earn.” It’s a simple fact of life.
Always make it a habit to learn something new every day. This is especially true when it comes to your finances and if you want to get rich quick. The more you educate yourself about money, how you make it, and how to keep it, you will end up far ahead of many.
You’re probably thinking ‘what is there to even learn?’ Trust me, there are millions of things out there that you don’t know yet, but will help you financially.
It’s just like learning how to drive a car for the first time. If you simply do what others do when they drive, then you can end up driving just as good. Learn how other rich people got rich, their habits, and emulate that. Simple as that.
2. Take calculated risks
The biggest reason why most people fail to become rich is that they are afraid to take risks. Taking a risk is one of the scariest things you can do, especially when it comes to money. If you want to become rich, then taking risks should be your middle name.
Sitting on the sidelines and not taking action is the number one way people stay broke. It’s easy to read about how to invest in the stock market, but it’s completely different when it’s time to actually put your money in it.
Don’t be afraid to take action. Doing one little thing towards your investment goals is much better than sitting on the sidelines and doing nothing. One step at a time.
If you are too scared to start investing in something, then chances are you just aren’t educated enough to make an educated Investment decision. If that’s the case, go back to step one. Take time to read on the topic and understand it before diving into it. But once you acquire the knowledge, then don’t be afraid to take that risk.
3. Create a written plan
Do you know what happens when you hop in the car with no destination and start driving? You end up far and nowhere. The same applies to the path of getting rich. If you don’t know exactly what your plan is, you won’t get anywhere.
Not having an actual written plan that is actionable only results in failure. Take a second to really think about what your financial goals are, and how you’re going to achieve them.
Once you figure that out, then have that written down. This includes timelines, a budget, goals, etc . Have every step of your path written down so you know what you are working towards. It’s much easier to also track your progress this way because you know what comes after what.
4. Create multiple streams of income
If you solely rely on your day job for income, you most likely will never get rich quick. Sure, you might take the long route and invest slowly, but that’s not what you are here for, is it?
Every wealthy person will tell you that it’s faster to fill up a bucket of water with two hoses than one. The same applies to money. The more streams that you have filling up that money bucket, the faster you will become rich.
Not only could you start a business for yourself, but you could also do side hustles and invest in things that earn you passive income.
Always aim to generate more than one stream of income, and you can grow your wealth much much faster.
5. Buy assets, not liabilities
In simple English, only buy things that make you more money. The typical person only buys things that are liabilities and does not by assets. This is the biggest distinguishing factor that separates the average person from the rich.
Wealthy people understand that money needs to make money. Instead of buying luxury cars that depreciate, clothes that are worth less and less, or buying the latest iPhone that only loses value, they instead by things that generate income.
Income-generating assets are things like investing in real estate, investing in the stock market, or even starting a business. By just understanding this simple thing, you can work towards investing in these kinds of assets than just things that drain your bank account.
If you want to be rich and successful, you will need to build a portfolio of these kinds of assets that make you money while you sleep. The more assets you control, the more money you will earn.
6. Re-invest your earnings
Once you start doing all the things I’ve listed above, you will start earning money. So what do you do with this money that you earn? You don’t spend it on things!
Instead, use that money to make you more money. This is called compounding. By reinvesting the money that you have earned, it can in turn start earning you even more money.
For example, if you owned a rental property and it’s netting you $500 a month, don’t go and start spending that $500 on clothes and vacations. Instead, use it to improve your property so you can charge higher rent.
Another example is if you owned stocks and you earned dividends, don’t use those earnings to buy things. Simply buy more stocks using the dividends you just earned. Guess what, now that money is earning you more money. You get richer faster!
7. Cut down your expenses
This might seem like an obvious one, but it deserves to be mentioned. So many people don’t realize just how much they spend in a year compared to how much they actually save.
A huge chunk of your earnings is wasted away on frivolous spending. To remain consistent and to reach your goals, you need to start keeping a close eye on your spending habits.
Start cutting down on unnecessary spending that you do on a day-to-day basis. Do what you can to reduce your Bill’s, your grocery expenses, and unnecessary shopping.
Instead, focus on saving as much as you can so your money can grow that much faster.
If you really want to get rich quick, then you will have to completely change of mindset and lifestyle. The reason why so few people actually become rich is simply because it’s not easy.
If getting rich was easy, they will be so many more of us out there. Instead, it takes patience, perseverance, and faith in yourself that you can achieve it.
To really get rich, you can’t pick and choose what you want to do from this list. Instead, realize that you have to do every single one of these items for a long period of time to achieve it!
One step at a time, anyone can achieve it, and so can you!
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