I should have used the word “prosperous” instead of “rich” but I think people gets drawn to a topic that is about getting rich more than becoming prosperous. Prosperous means a lot more than the usual definition of money accumulation. According to thesaurus.com, the synonyms for prosperous are affluent, flourishing, opulent, sitting pretty, snug, rich, and wealthy. Thereby, we can also conclude that “prosperous” may be synonymous also with having good health, good fortune, good character, proper education, great personality and content well-being.
If you are looking for a get rich quick solution, this may not be the post for you to read. Rich people get wealthy slowly, not quickly. The only exceptions are the lottery winners which get rich in an instant but there’s only a few hundreds of them and in a few years, their wealth will be gone and they are back to the same status as before winning the prize or much worse. Those that inherited their wealth got rich fast too but as you know, their parents and grandparents took a few years or decades to acquire wealth. So what’s my point? If you want to be wealthy, most of the decisions you make everyday will affect your goal. And you have to be consciously aware that there are a lot of distractions and a lot of deceptively attractive proposals that will try to take away your money. Advertising of consumer goods is a good example.
Here are the steps, and you don’t have to follow it from 1 thru 12. You can start improving on a few of them at a time or all at the same time if you wish J
- Save enough money for emergencies. It will avoid anxieties and prevents you from having to pay interest on a credit card debt. Most financial counselors say six to two years worth of salary. I say two to three months is a good start.
- Spend below your means. Your monthly expenses should NEVER exceed your net income (Salary after tax deductions or business profit after taxes).
- Save a lot of your income. 20% to 70% is doable. This means a bit of sacrifice for a better future!
- Invest in education. I recommend a college degree in a course that is useful. Sorry if I’m being blunt. Engineering, Accounting, Languages, Medical related fields and Military or Law Enforcement are all good. I may have failed to mention others but these are the obvious ones. If that is too expensive or too long for you, get a vocational training in something that you are passionate or very interested in: plumbing, carpentry, drafting, bookkeeping, woodworking, etc. DO NOT get an education or training just because someone told you that “that’s where the money is”. You’ll hate the job and your life.
- Avoid totally the obvious money-eating vice like alcohol, tobacco, gambling (lottery is gambling).
- Avoid time wasters daily: Hours of TV watching, facebook, web surfing, computer games adds up to a lot of wasted time. You don’t see millionaires involved in these activities (unless their income are derived from those areas).
- Pick the right companions or friends: Don’t hang out with people that will hinder your productivity and you will be a winner.
- Pick your activities. Cutting coupons is good but don’t spend money just because you have a coupon for it. That’s counterproductive. Instead, research a few days each week how you can increase your income and limit your expenses.
- Eliminate the unnecessary. Do NOT buy things just because there is a 50% off sale. Those department stores won’t be there for you if you lose your job or income. Do you have extra clothes or gear you don’t need? Sell or give it away.
- Be charitable. Give to your church, to charity organizations (after you research where they spend donations – there’s numerous stories of charitable organizations whose officers get paid too much money, as an example).
- Have a budget. Allocate what you will spend on some areas. Check your expenses every month to see where you overspend and also where to add more funds.
- HELP out other people. Let me clarify what I mean by help. Is it good to help a person if he or she spends her money on cigarettes, alcohol or other vice? Of course not! We’ll that’s an easy one! How about this? How about if you see a homeless person on the street and they look like they are not really a homeless person? Give them the benefit of the doubt and help them a little bit. A $5.00 here and there will give them a meal at least (if they are homeless), and it will not make you poor.
One more thing about giving to charity and helping other people. When you give, you reap back what you sow. That means the wealth you spread will eventually come back your way. It may also come back in the form of blessings – your car or clothes not ageing fast, no unexpected expenses, no accidents, good health and having satisfied lives.
Live long and prosper slowly!