How do I become wealthy? How do I get rich fast? Better yet, how do I become a millionaire?
Believe it or not, accumulating wealth is much simpler than you might think. It might even be easy depending on the type of person you are, but it is possible for anyone, no matter your background, where you live, your education, IQ, whatever.
Firstly, there is no good way to “get rich quick”, unless it’s illegal, verging on illegal, or unsustainable (meaning, blowing through customers in a way that they will never want to do business with you again). As well, having a high income and being wealthy are two totally separate concepts. You can have a great income and be completely in debt with no real assets. You can make a modest $100,000/year income (or less) and be a millionaire. We don’t hear these stories because they’re not sexy. These people have boring habits, mundane jobs, and live very average-looking lives.
Wealth Building Steps – Ways to Become Rich
Even if becoming wealthy isn’t as romantic as we might imagine, it still is something worth aiming for right? So what do we do to get there?
Build Self Discipline
Start practicing your self-discipline. The first way to do this is to pay yourself first each time you get paid, by putting 10% away. This is so simple and doable, yet very VERY few people actually get around to doing it. Anyone can cut this much out without experiencing a real lifestyle change. While those savings build up a little, look for good ways to invest them, and do not take out the earnings generated – self-discipline – let them continue to multiply.
“Compound interest is the most powerful force in the universe.” “He who understands it, earns it … he who doesn’t … pays it.” – Albert Einstein
Write Down a Concrete Strategy
Most, if not all, successful businesses have a written plan with current and future goals. Why not do this for your financial goals? Not only a budget but investment and earnings goals for each quarter and year. Writing these things down not only helps you stay focused but can save time and money as you change direction and refine techniques. There might be a learning curve to this, but anything worth doing is a bit challenging in the beginning.
Create and Stick to a System
A system is a great form of leverage for a business. It’s often more efficient to manage a system rather than individual people/employees. The same can go for your financial plan.
A business system would ideally state the who, what, where, when, why, and how about operations. Your wealth strategy should have systems that decide things like:
- Choosing investments
- Funding investments
- Reporting on results of the investments
Again, the beginning steps of creating the very first plan will take some time, but once you have it, you’ll be very organized in the case of decision making, and you’ll be well on your way to efficiently increasing your wealth!
Have a Solid Team
While it’s possible to have a one man band when you first start a business, we all know you can’t even think about scaling until you have a great team around you. This same thing should be applied to your wealth strategy for things like tax strategy, other aspects of accounting, even investment capital like loans if you’re presented with an opportunity that makes sense to utilize leverage.