How to Become Rich
Everyone wants to get rich and to get to a point of financial freedom where no bills will go unpaid and no expense will be left unattended due to the fact that they will not only have enough money, but will have a surplus so as to spend on the nice things in life, spoil themselves and their family and have some to give away. Being financially stable is everyone’s dream and we all aspire to be rich, however riches do not just come overnight and there are various ways of getting rich, and to get there one must have a self-discipline, following certain unwritten rules and ways of doing things so as to be successful.
To become rich and wealthy, one of the most proposed ways of getting there is to invest your money. By investing your money, you get your money to work for you, and make more money for you. There are numerous ways of investing, but some of the ways that you can easily become rich and with less risks involved if due diligence is observed is by investing in real estate and in the stock market.
Real estate just like any other investment channel has its own risks, however; it is one of the most rewarding. To invest in real estate, you can either develop your own real estate property or buy one that is already developed. The advantage of developing your own property is that it will be according to your own specifications and thus, it will suit your intended use without you having to make any adjustments. However the process of developing real estate can be quite time and resource consuming, although it is mostly cheaper as opposed to buying ready developed property.
On the other hand buying already developed real estate is more expensive, but it is not as time consuming and you do not have to incur a lot of bureaucratic procedures involved in construction. It is however best to settle on what works for you whether it is to buy or to develop. Once you have your real estate property, you make money off it by either selling off the property for interest or you can rent it out. Renting out real estate property whether for commercial purposes or residential purposes creates for you a steady income stream and this can lead to passive income which can make you rich.
Real estate can also be a source of funds for further investments because the monthly income you can collect in the form of rent can be channeled into other investments either in real estate or you can choose to diversify.
This is another form of investment that requires great patience and calculated risks, however on the long term you will end up making a huge sum of money by investing in the right stocks. To trade in the stock market, you can do it yourself or have professional stockbrokers do it for you at a fee; and they make the whole process simpler. You need to know about the companies whose stock you wish to buy, understand the products they offer and their future outlook in the market so as to be better placed to know which stock you can buy for the long term.
You will also have to know about the leadership since leadership can greatly affect the future prospects of a company. With all these in mind, once you have the right choice, you will earn money through dividends and as the company grows, the stock value will rise, meaning that the value of your investment goes up and you can choose to sell some of your stock so as to make money. If you are looking to start buying stock, the key thing is to do your research and diversify. Having shares in different companies means that you get to earn dividends from multiple sources and during different times of the year thus, you have spread out incomes.
Always be patient with this type of investment because, seeking to make money quickly by buying and selling stock every day can easily lead you to lose your money. Rather invest for the long term and enjoy the annual return on investment as the stock appreciates with the growth of the company. Apart from stocks you can also invest in bonds.
Another great way of investing money and become rich is by joining an investment club. Investment clubs take away the hustle of having to figure out where to invest because all you have to do is join and deposit your funds. Funds are pooled and the investment club then invests as one entity. Investments are diverse from real estate and stocks, to other industries that require heavy investments such as the transport and energy industries.
After each financial year, the investment club will calculate its profits and a certain share of this will be paid to its investors depending on how much each investor contributed. In an investment club or group, you stand to make money annually and this will increase as the club or group continues to invest more and earn more.
Offer a product or service
Apart from the above investments, you can also invest in a business by offering a product or a service to the public. To be rich through conducting business or offering a certain service or product, the first thing that you need to do is to address a need. The society at large faces numerous challenges which create the need to have solutions. If you can come up with a solution to a need and find a way of commercializing it, then you can create a revenue generating business that can make you rich.
If you go into it thinking about serving people and offering quality, then you can make a lot of money, but if all you think about is money, you may lose it all along the way. However, starting from scratch to serve a particular need may take time to be established, although with proper research and a sound business plan, you can establish a firm that will go on to make you rich, but this will require patience, proper management and leadership as well as proper market study and responding to the market’s needs.
A sure way of being rich is saving money because if you spend all the money that you have, you will end up broke again. Always have a certain percentage in mind of how much you will save each time some money comes your way. It does not matter whether it’s your salary, a bonus, a prize you won or money from a business or investment, always strive to set apart some of the money and save it for a rainy day. If the rainy day does not come, you will end up with a pool of funds from which you can choose to get capital and invest in a business or other activity that would bring more income.
Purchase what you need and what does not depreciate quickly.
When making purchases, buy what you know you need and avoid impulse buying. No matter how much you have, if you keep on buying things that you do not really need. With impulse buying, you will buy items that you do not really need and after a week or so you find that you no longer use that item or it is no longer appealing to you. Buy what you really need and always have a budget that you adhere to so that you avoid spending too much and impulse buying.
When you buy items, go for items that will at least retain their value if not increase their value in the long term. If it is an item whose value drops, then it should be an item that you really need and it serves you well for you to justify why you are buying it.
Try as much as possible to cut your expenses so as to avoid unnecessary spending on items you do not need and avoid gambling as well as vices such as alcohol and cigarettes which make you spend frequently.
Have a career
Having a great career is also a way of getting rich. To have a great career you first need to excel in your academics so as to have the required qualifications to pursue higher education. The more you are educated the better chances you have of pursuing a great career and getting paid more.
Once you have the right academic qualification, you need to choose the right profession. Choose a profession that offers you growth and you know it’s something that you will love to do even if you have to do it the rest of your life. Once you have chosen a career, go to areas where you are likely to get a job such as cities or industrial towns if appropriate for your job and then find an entry-level job. Start small but build your way up. The more experience you gain, the more you earn and the better the rank you get at work.
The career path to riches can take some time however if you are brilliant at what you do and you stand out, you can create a niche for yourself and you will quickly go up the ranks. You can also move from employer to employer once you have gained experience so as to get better pay for your services.
With a career, you get to earn a salary and other benefits, however you can use this salary as a source of funds for investment and make investments which will give you continuous cash and this will enable you to become rich even faster as opposed to simply relying on your career.
When you want to become rich, the best game plan is to diversify. Try and establish as many sources of income as possible and you will keep on receiving income, more than you need to spend, which you can then re-invest to make more. Keep going at this and before you know it, you are among the rich and the wealthy in society.