These Are What Nobody Tells You About Being Rich
We’ll try not to make this piece sound harsh. But, in no other way would we help anyone other than being truthful and straight to the point. Who’d not want to become rich or richer than they already are? What do we imply by the term ‘rich’?
Being rich implies living without any financial constraints. That may not be a sufficient definition of ‘rich’ but, at least, let’s base it on that. Most people want to become rich. But, have you ever wondered why only a few become rich? And then, words like one %s, income inequality, and the wealth gap spring up. Most probably, you’re pretty familiar with those terms. Also, there’s this implication among people that real wealth in today’s world is too exclusive for most to attain.
Why So Few are Rich??
There’s only one real reason why only a few become rich. Probably, you know it. But, just so we’re in the same boat, the reason you’re not rich is that you don’t want to be. That sums it all, doesn’t it? You’re not willing to face facts. Or, should we say, you’re not ready? No, there isn’t any appropriate time to get ready. So, here are the facts you’ll have to face if you want to become rich:
1. You Must Believe
Most people tend to have a complex. In fact, some have already convinced themselves that they’ll never be rich. If you’re among those who believe that, the chances are that your self-fulfilling prophecy will come true. You must believe that you’ll become rich.
There’s this kind of people that feels that they’ll never become rich simply because they’ve no college education. Now, it’s upon you to decide whether you’ll use that excuse. Look, the list of wealthy individuals who never made it to college or dropped out is extensive. Just to mention a few, we’ve got Steve Jobs, Bill Gates, Frank Lloyd Wright, and so on. This list is continually growing.
Negative thoughts will prevent even the smartest people from becoming rich (unless they win the lottery, of course). Don’t push yourself into thinking that you’re not good enough, not smart enough, or just unworthy. Also, you ought to act like you’re rich. However, we’re not implying that you go out there and spend like you’re rich. We mean planning for the future, working more hours, and saving more.
2. Believe: Being Rich isn’t Wrong
It’s no surprise that some people fundamentally believe that the wealthy are bad people. If you feel that way, perhaps it’s because you’re not interested in becoming rich. The wealthy get blamed for quite a lot, much of which is unfair.
We agree that not all wealthy individuals contribute a significant portion of their income to charities. But, many rich people donate millions of dollars to charities and donations each year. Still yet, they get blamed for the widespread poverty. That just promotes more negative thinking among more people. Believe us. You wouldn’t want to get caught up in such thinking. If you wish to become rich, embrace it. Also, realize that being rich is a result that’s dependent on your efforts.
3. You Must Love Money
Fearing money will just make you poor. In fact, it’s a one-way ticket to the ‘average town’. Money isn’t a disease that you would never want to get. You need money because it’s freedom! Everyone needs it! There’s ultimately no reason to make up excuses or justifications. Don’t be afraid. Say this loud: I want money and here’s what I’m doing to make it! Getting ashamed of your need for money is just unreasonable. You should thus get out there and get that cash!
4. Planning for the Future is Inevitable
You might be wishing you were rich. But, you’ll never be rich without planning for the future. You won’t save money without a set plan. Often, you’ll have excuses. For instance, some individuals convince themselves that they’ll save when they grow older. A common excuse for most people is that they can save more if they make more.
If you’re among that kind, then consider hiring a financial planner. Financial planners will help you set achievable goals. Also, they’ll contribute somehow to help you stick to that. But, it ought to individually start with you. Furthermore, that’s the only way to understand and improve oneself.
Now, you can begin by carefully assessing your current budget. Consider the inflation. Also, look at potential financial-related difficulties. Such could include stock issues, losing a job, a loved one, and so on. In fact, it shouldn’t be difficult to figure out how much you need to save per set time to reach your financial goals.
5. Stick to the Set Goals
It’s among the issues which can prove hardest after setting goals – sticking to them. But, a financial planner can be of considerable help in keeping you accountable. Also, you can talk to your significant other or a trustworthy friend. When budgeting, you’ll realize that giving up some unnecessary items will make you rich even faster.
6. You Need to Spend Less than You Make
Although it’s apparently obvious, it’s worth mentioning. Say you’ve got a combined annual family income of $100,000, but you’re not saving any of that. You won’t become rich. It’ll be worse if your expenditure is more than what you’re making. People tend to convince themselves that they’d be able to stay on budget if they had more. That could be the case, but only once in a while. Budgeting is often the key issue here.
If you’re unable to stay on a budget now, the chances are that you won’t be able to do so even if you make $50,000 more. Do you often find yourself purchasing things which are more extravagant than what your life dictates? Do you often find yourself regularly using your credit card yet you can’t pay it off? If so, then you’re spending too much. In fact, you’ll ONLY be able to save once you start spending much less than what you make. Try living within your means. In turn, you’ll learn to enjoy doing so.
7. It Is Not Just About Spending Less
You also need to make more. We can define frugality as using money intentionally. It implies spending your money on items which matter. For instance, you can opt to make coffee at home, rather than to purchase it at a shop. Yes, frugality can enable you to save. But, it’ll make less impact as making more money would.
Remember, there’s a limit to the amount you can cut back. However, there’s no limit to the amount you can make. In fact, the more you cut back on your expenditure, the harder it gets. On the contrary, the more you earn, the easier it gets.
8. Investing is Important
Most of us get intimidated by the thought of investing. Of course, there are other ways to get rich. But, the larger section of rich folks comprises those that earned their wealth by investing. You could decide to invest in stocks, real estate, or any other viable option. Investments can help you earn large amounts of money. Also, they can enable you to earn passive income. That is money that you earn without doing any direct work.
You Must Invest Properly: While every investment will bear some risk, you ought to do it properly. In case you don’t invest, you should start doing so. Say you decide to invest in stocks. Ideally, you’d split your cash between multiple different stocks. Yes, sometimes you can become rich from investing all your money in a single great stock choice. But, you could also lose in case that stock plummets and you had tied all your money into it. The best bet would be diversifying your investments. Therefore, you should consider putting it in bonds, stocks, and cash.
Maybe, you’re just starting off and have only a little amount to invest. In such cases where diversification proves impossible yet, save! Look, saving anything is better than nothing. You’ll be surprised at how much those small ‘inconsiderable’ amounts grow fast to incredibly ‘considerable’ amounts. In the long run, however, diversifying your investments will prove to be your best bet.
You Must Start Now: You get to earn interest when you save or invest. That interest can be high. But, what’d help your money grow considerably is compound interest. That implies earning interest on the interest you’ve earned already. Over time, that makes for a difference of thousands or millions of dollars.
The earlier you put the money to work, the more it’ll do for you. Start right now with that little you’ve got! It doesn’t apply to investing alone. You should also begin developing your skills early. You’ll be more prepared for a fantastic opportunity which gets in your way if you start sooner.
You Must Stay Somewhat Frugal Even After Amassing Wealth: That might not seem to be the case when we consider the extravagant displays of wealth. But, most of the wealthiest individuals are frugal. It doesn’t imply that you become extremely economical once you begin amassing wealth, to the extent of rationing out toilet paper. The key lesson here is that you should observe a reasonable relationship with your money. Make use of that money to do several things which would make you happy. Then, invest some of the cash. But, don’t spend all your money.
9. Getting Rich Entails Working Hard
Working hard is among the most common pieces of advice you’ll get throughout your life. It’s worth stressing that getting rich requires hard work. Wealthy people work hard. They spend quite less of their time on leisure. They wake up early. Don’t listen to cheap antics claiming that rich people don’t work hard.
10. Embrace the Facts
Maybe, you’re not a numbers’ person. For that reason, you might find it tempting to cut yourself off from assessing your finances. For example, some people will blatantly ignore their bank statements. Others will neglect staying on top of their investments. That’s among the hugest mistakes you’d ever make.
You won’t get rich by blinding yourself to your balance sheet. Instead, you’ll only land in debts, make poor investments, or end up destitute when retiring. Dive in and face your money. Yes, it might not be what you’d want to see. But, the truth will prompt you to make decisions. Subsequently, you’ll move forward.
Money buys you freedom, security, flexibility, and enjoyable experiences. And, such is what defines ‘rich’. You need not have massive amounts of money to acquire such things. Rather, all that you’d need are goals, balance, and planning. There’s no set income that you require to become wealthy. Saving, alone, has made many people retire as millionaires.
There are absolute differences between the haves and the have-nots. The latter sets low expectations in order to avoid disappointments. Rich people are always up for nearly any challenge. To get rich, you must BE something. Be that kind of person that gets rich. Do you want it? Go out there and take it! As often said, there’s a way wherever there’s a will. If you’re willing to get rich and act upon it, you’ll get rich!