These days it seems like everyone wants to get rich, but few want to put in the work or learn what they need to in order to actually be rich. If you’re reading this, I’m assuming you’re one of the people in the minority. You want to make a lot of money, and you’re ready to do what you need to get there. Well, I’ll share what I know and hopefully that will help you along the way!
1. Be A Creator Rather Than A Consumer
Don’t get me wrong, it’s okay to be a consumer, and it can even be good. For example, everyone should make a habit of reading, and a lot can be learned through it. You can even get started with creating by reading about it and then applying what you learned. So, no, I’m not saying consuming is completely bad. However, if you want to get ahead, you need to get into the habit of creating. What you decide to create is up to you. You could write more, get involved in something more physical like carpentry, or become some sort of content creator for an audience. The point is, you have options.
As you create, you’ll rapidly build your skills. As you build your skills, you’ll be more marketable for a higher salary or you’ll be able to build a business of your own. Think about it, creating gives you experience, a portfolio, and can even be a business in and of itself.
2. Understand The Basics Behind Money, The Economy, And The Stock Market
I know this is a bit of a given, but most people don’t take this seriously. It’s good if you’re following “tried and true” ways of building wealth, but it’s not good if you’re blindly following them without understanding any of the fundamentals. If you don’t understand why you’re doing something or should be doing something, you’ll eventually slip up and it can be an absolute disaster.
Besides, the more you understand about money and the market, the more you can call your own shots without relying on the advice of others. In those who start from scratch and build their own wealth, self-sufficiency is a must.
Here Are A Few Of The Fundamentals To Know In Order To Be Rich
- Money is continuously printed, and inflation rates mean the value of the money you currently have is decreasing.
- Ups and downs in the economy are normal, and to be expected. Try not to freak out and make rash decisions in a bad market, and don’t get cocky when you have a successful stretch in a good market.
- When you invest, never do it just because you’re afraid of potentially missing out on the “next big thing” – you’ll end up losing more that way.
- When it comes to investing, playing the long game usually ends up yielding the best results.
- If you don’t fix bad money habits while you’re poor, you’ll likely still have them when you have a higher income.
3. You May Have To Work Harder Now So That You Can Relax Later On, And The Fastest Way To Help You Get There Is By Building Multiple Sources Of Income
I know it’s not pleasant, and for many it is hard to wait to see the fruits of your labor, but it can definitely pay off if you work hard and are patient. If you want to get ahead of everyone else, you need to put in the extra work to do so. The harder you work now, the less you’ll have to when you get older.
With that point being made, spend some time building new sources of income. Working a 9 to 5 job is all well and good, as is entrepreneurship, but they aren’t mutually exclusive. If you don’t feel comfortable diving completely into a new business (for example, you may have kids to feed), you can still start while working a job. Find something that you can work into your schedule and get started! It doesn’t have to start big, but a simple side hustle that makes you a few hundred extra dollars a month could eventually be something that replaces your job and becomes a full-time gig of its own.
I do want to warn you though, as you make more money don’t fall into the trap of spending more. Try to keep your spending habits the same (specifically, don’t start spending more just because you can), so that you don’t squander everything you’ve worked for.
4. The Power Of Investments
Now we’re at the core of building wealth and getting rich. Everything else is necessary too, but it’s all for nothing if you don’t invest consistently. There are many ways you can invest, some of which are good and some of which can be dangerous and more like gambling. I’m just going to go over a couple of the best and most common ways investors make their money.
Stocks
The one you probably hear about most often is the stock market. In the news you constantly hear about someone purchasing some company’s stock and making or losing millions, or something to that effect. The truth is that very few people can beat the earnings from index funds and ETFs (at least, those with low expense ratios) when it comes to investing. If you want to invest in individual stocks, that’s always fine and I’m happy that you’re investing in something.
However, investing in low-fee index funds and ETFs has a proven track record of performing well and making people tons of money over a long period of time. How long that takes is up to you and how much you invest, but it’s not a stretch to say that most Americans who invest 10-20% of their income can certainly become millionaires by the time they retire – just through investing in the stock market.
Real Estate
The other option I’d like to mention is real estate. It can be harder to get started in real estate, and it definitely requires more knowledge than basic investing in index funds and ETFs. I’m sure you’ve heard of or met multiple people who have made millions through smart real estate investments though. If you know what you’re doing, there is certainly a clear and well-trodden path to wealth through real estate. I mainly invest in index funds and ETFs, but the money I invested into real estate has had some insane returns in a very short period.
Of course, I live in an area with an extremely hot market right now, so don’t take that as any sort of guarantee. I’m simply pointing out that it’s certainly a potential investment for you, but if you don’t know what you’re doing with it be sure you have a mentor or someone who can help you learn the ins and outs.
5. Be Humble And Respectful
I really hope this one doesn’t need to be said, but don’t let any amount of success sully your character. Stay humble, appreciate and recognize those who helped you get to where you are, and respect everyone. I don’t care who you are or where you end up, but in my opinion it’s all for naught if you lose your morals and common decency in the process. Financial security and freedom are good, but never lose sight of who you are or what your values are along the way.
Conclusion
Now that I’ve touched on all 5 points, good luck! Get out there, do more, learn more, apply more, and find your way to your riches. Just remember, increasing your income is good, but investing the excess (instead of spending it all) is just as important. There is never a guarantee for wealth, but do your best and don’t let hurdles stop you.
It’s important to persevere and keep working towards your goals (whatever they may be). Or course, if you have any tips you’d like to share, leave them in the comments. Bitter to Richer isn’t just me sharing what I’ve learned, it’s a community of people helping each other out, so we appreciate every comment or suggestion you make!
For more content like this, and a free budgeting template and financial goals worksheet, be sure to sign up for the Bitter to Richer newsletter.
