Almost everyone has dreamt of getting rich at some point or another, and why not? Wealth after all comes with a few privileges, not the least of which are financial freedom and the chance to do what we want.
That being said, wanting to become rich and actually becoming rich are two entirely different things, and the gap between those two can be quite difficult to bridge.
Nevertheless, there are a few things you can do to help you achieve your goals, and while doing these may not guarantee a surefire path to wealth, they may at least get you part of the way there.
1. Get a well paying job
This is the first thing you should do in your quest for wealth – it is the single most important thing you can do to make more money. Depending on your particular goals, you will ideally want to land a job that can get you $100,000 or more every year. Finding a job that pays that good is not an easy task but a large monthly income is essential for getting rich quick.
2. Sort out your taxes
No matter how much money you make and how you make it, a large portion of your income will likely go toward paying your taxes. However, there are ways by which you can cut your tax expenses considerably and in a legal manner. The best bet is to find a qualified tax accountant for consulting. Such a professional will show you effective ways by which you could cut your tax costs legally.
Keep in mind that the rich pay considerably less taxes than the poor – that is because the rich like money, they don’t want to give it away.
3. Save as much as you can
This is another important aspect of getting rich, and most financial experts recommend setting aside 20% of everything you earn for savings. It may seem difficult to do but once you have gotten used to setting aside this amount every month, it will soon become second nature. In some cases, you can set your bank to deduct the desired amount automatically and place it into a separate account.
Setting aside 20% of everything you make can seem difficult but keep in mind that in China it is common that you put aside at least 50% of everything you get. This is the main reason why they have such huge cash reserves at the time when America is getting more and more into debt!
4, Invest money conservatively
What you will want to look for are investment opportunities that allow you access to a broad range of assets and charge you comparatively low fees in the process. It is also a good idea to invest equally in a few different assets so that you have reduced financial risk in case things go bad.
You should also take your money matters into your own hands – don’t just trust your money to sit in a fund recommended by a CPA or a salesman but do some research and decide for yourself where your money should go. Stick with the things you know best – if you go shopping a lot buy the stocks of your favorite store. If you are a construction worker – buy the stocks of the best construction company you know.
Remember – when you do something a lot then you automatically become a specialist in that field. Why should you listen for someone working in a cubicle to say what the best construction company is when you yourself are dealing with such companies daily.
5. Forget that your savings exist
Now that you have gotten into the habit of saving money, your best option is to forget about it…yes, all of it. The biggest mistake a lot of beginner investors do is that they spend too much time watching their stocks rise and fall. It is common knowledge among professional money makers that watching your investments too keenly will usually result in emotional decisions losing you money.
You should also resist the temptation to dip into your savings or your investments, and you will be rewarded with a healthy nest egg for your retirement or for future investments.
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