This is one extremely interesting subject for the majority of people who walk the Earth. How to get rich? The question implies that there is an answer that could be treated as a formula. Is there some magic formula to get rich? You are reading this article hoping that you will find such an insight, which would bring this goal within your rich.
The magic is within yourself
The first thing that would help you achieve this goal is to believe it is possible. Believe it with every fiber in your body. You can be rich; as rich as you would like to be. The first thing you should say to yourself in the morning and the last thing at night is that you would indeed be rich. Wanting and wishing it to happen would not make it happen. You also have to work on it, but if you do not believe it is an achievable goal, you will never succeed. Treat this as any goal in your life, such as earning your degree, getting that coveted job with a multination company or starting a family.
Have a plan with clear and measurable goals, realistically timed. For example, you could set your vision to, "I will have US $1 million by my 30th birthday" or "I will have enough to permit me to retire within the next five years." Once you have decided on your goal, break it into achievable milestones and go for it with all that you got.
Some pearls of wisdom to help you on your way to success
There is not such thing as the best way to get rich or secrets to get rich.You will have to discover the path on your own, and each conduit to that enviable peak is unique. However, there are a few things that would help you greatly along the way, even inspire and sustain your efforts in this direction.
1. Financial discipline is important. Iif you want to amass a fortune, you have to respect money and preserve it. This does not mean you would live a miser's life; rather than you watch out and ensure that every time you spend money you get full value for it. Carefully differentiate between needs and wants. Needs are those without which you cannot do ÃƒÂ‚Ã‚Â– education, health care, nutritious food, decent clothing, shelter among others. Wants, on the other hand, are luxuries that you could easily eliminate from your life. Remember, there is always enough for your needs but never enough for your wants.
2. Minimize the use of credit cards ÃƒÂ‚Ã‚Â– credit makes you feel all-powerful, invincible, and poor. You will always be tempted to overspend when you have a credit card in your hand. If you must have credit cards - for this improves your credit score ÃƒÂ‚Ã‚Â– keep only one in your purse or wallet and use it only is utter emergency. Make a habit of using a debit card instead, as this would keep you alert on the balance remaining in your account.
3. Save, save, save ÃƒÂ‚Ã‚Â– "Money begets money" ÃƒÂ‚Ã‚Â– this is a wonderful adage that says everything you need to know. You indeed need money to make money and what best way to get there but save. Get into the habit of saving at least 20 per cent of your income every month. Aim at building a 'corpus fund' for rainy days that could keep you worry-free for at least 8-12 months in event of loosing your main source of income. Once you reached this goal, divide this amount into three and use these funds for making safe investments. In case you are green about investing, consult financial specialists, experienced friends, and colleagues and take well-informed decisions.
4. Earn more, spend less ÃƒÂ‚Ã‚Â– in other words, getting rich means creating surplus and building on it. This is statement consists of two separate actions: (i) earn more, and (ii) spend less.
How can you earn more?
a. Get a better paying job. For this purpose, you need become the best in your field of specialization and you need to constantly upgrade your knowledge and qualifications so you could reach the top. Network heavily among peers, superiors and juniors alike ÃƒÂ‚Ã‚Â– some of the best breaks are exclusively available through networking.
b. Monetize your free time. Spend at least 1-2 hours per day learning and applying yourself to something that pays you. This could be doing overtime, running a home business, freelancing on and offline, learning a new skill and so on. Use time as one of your best investments to achieve your goal to get rich. Keep on searching for ways that would help you turn your free time into money. Do not, however, use all your free time or you risk burning out; it is very important that you have the time to do nothing so you could "recharge your batteries" both mentally and physically.
c. Take a chance. Buy a lottery once in a while. Step into a casino. Take a chance. However, when you do so ensure that you decide the cap of your investment and stick to it. Say, limit yourself to US $100 or 500 as investment and whether you loose or win, when this money is over, you walk away. You could do this once in a while; say once a year or so. The best would be to play free lotto, which is fun and can surprise with a winning. In case you are among those who believe in fairy tales, you could earmark 0.5-1 percent of your yearly income for this purpose.
d. Be the best in your field ÃƒÂ‚Ã‚Â– You definitely need to be the best in order to attract the highest financial rewards. However, in order to be the best you need to be consumed by what you are doing; you need to be completely in love with your work. Identify what is that gives you utmost pleasure and once you do so, apply yourself heart and soul to make money using that particular work. Whatever is that you love, if you put in sufficient effort, would make the best vehicle to reach your destination. Once you succeed at doing this, your goal to become rich is 50 per cent achieved.
How do you spend less?
a. Make a budget and stick to it ÃƒÂ‚Ã‚Â– every month make a budget for 70 per cent of your income; the break up for the remaining 30 percent is: 10 per cent you earmark for charity and 20 per cent for savings and investments. Never deviate from the budget. You will find that it is not difficult to spend within your limits once you have a budget drawn up. Always include into your budget a certain amount for entertainment and fun shopping. Discipline does not mean abstinence; it means spending wisely.
b. Employ yourself and family members ÃƒÂ‚Ã‚Â– do you outsource cleaning, lawn mowing, and the like? Why not do it yourself? Wake up just one hour earlier or go to bed one hour later than you normally do and you will find plenty of time to complete all the chores around the house. Use the saved money to boost your savings and for special treats.
c. Minimize eating out. Just having coffee and doughnut can cost you a small fortune at the end of the month. Stop buying food and eating outside. Home cooked meals are tastier, more nutritious, and much cheaper than the frozen supermarket stuff. Always carry some nuts and homemade snacks with you for those hunger attacks. It will make a great difference on your monthly budget.
d. Live frugally. Understand the meaning of frugal living. This means you eliminate every expense that you can, without impacting upon the quality of your life. This means you are getting the most of your money. This means you are making money work for you, as you can invest the surplus saved and multiply your wealth. With time, you will find that less is more and contentment comes from living simple.
e. Always look out for discounts and deals. Get into the habit of looking for opportunities to save by booking early, using coupons, buying during sales, stocking non-perishable goods, car pooling, bulk buying (only when you need the whole stock you are buying), wholesale shopping, and the like. The savings from here would amaze you.
5. Follow your heart. Become an expert at something you love the most and be at it with all your being. For one, you would never be really tired working as you would love every moment you work; and secondly, when you apply yourself to something you love dearly you are bound to succeed.
There are no short cuts to getting rich. It requires single-minded determination and a will of steel to achieve this goal. The good news is that it is possible. Each person out there can become as rich as he or she wants to be. You can be rich. If you are not, it is because (1) you do not believe it is possible and (2) you are not willing to work hard at achieving this goal.
Do you want to get rich?
Helpful online resources
http://www.lyved.com/success/5-rags-to-riches-stories/ - get inspired by these five rags-to-riches stories
http://www.smartmoneydaily.com/celeb-finance/10-rags-to-riches-billionaires.aspx - read about 10 billionaires who started out only with the dream of being rich one day; they all are people like you and me and if it is possible for them, it is for anybody
http://www.bbc.co.uk/insideout/southeast/series4/rags_to_riches_entrepreneurs.shtml - a lovely brief on the how-to reach the top