One of the most asked questions of today.How do I become wealthy?What does it mean to be wealthy?Being wealthy is being able to live luxuriously , living in excess or having acquired a vast amount of assets,resources or money.
What can you do to become wealthy without earning a large paycheck or working your ass off?Here follows some tips and tricks that I have acquired through reading some articles, books and online research.
-Poor people do not budget.
Having self discipline is crucial in building wealth from scratch.You have to come to terms with your current situation and income.One effective trick I have found follows:
70% of your income should accomodate your lifestyle
20% should be used to pay of debts/creditors(If no debt, this amount should be saved)
10% must be used to create another income stream.(MUST TAKE RISKS)
This 70% should be divided by the total amount of days which you need to survive till your next paycheck.Example
If I get paid 1000$ on the 31st, 700$ must keep me alive till my next paycheck.This means I can spend (700/30=23$) a day. 23$ a day will then be your lifestyle and you can do whatever with that money , but DO NOT EXCEED YOUR SPENDING LIMIT.It is human nature to always want more than what you currently have.By creating a framework for yourself and following it strictly will be your most difficult obstacle.Doing this for long periods of time will show you what it feels like to always live within your means and always have money to do stuff.
-If you want to start building your wealth, spend less money on food.
Poor people tend to spend atleast 1/3rd of their income on food.We all struggle to find time to buy fresh groceries for home and to cook a healthy meal with a busy work schedule.If you want to achieve the lifestyle of eating out every night , you are going to have to sacrifice 'eating luxuioursly' until your income can suit your lifestyle.
-Poor people do not invest for the long term
People want immediate results.Playing for the long term will be your best 'gamble'.Try to live as frugally and cheaply within your means till you have set up sustainable sources of income
-Poor people do not take risks
I am not saying to go skinny dipping and jumping off cliffs.I am talking about risk management.Don't be afraid to fail and lose money.High Risk, High reward isn't always a viable argument.If you gain a 10% return on 100K investment it is the same as gaining 10% on 1000 1k investments.You do not always have to take one big risk , but spread the risk so that you do not "put all your eggs in one basket"As long as you do something pro-active and learn from it.
-Poor people cannot conrol their emotions
Learn to say no.If you only have 10$ to spend today, dont let your friends trick you into spending 30$ on partying with them.Learn to identify what decisions will benefit you the most by looking to the consequences of each decision in the long term."Lets go out for one beer"
-You don't have to know everything
The world is a big place , with many smart people who each have a individual niche.You don't have to be the best stock market player, just find one.There is always someone who can do things better than you, find them and ask for their help.Create strong and lasting relationships which will become more profitable as time goes on.