Every entrepreneur dreams of being rich. They dream of having the power to pull fiscal strings, able to make and command a vast fortune money while they sleep, all while enjoying a life replete with leisure and pleasure. In a world where the have-nots far outweigh the haves, where just over 1,800 individuals across the entire planet can call themselves billionaires– a mere blip on the percentage scale of the world’s population– not only are most not rich, they’re also heavily indebted.
While some might seek the secrets or answers to getting rich in life, others are simply struggling to keep their heads above water. Most are suffocating in a sea of debt, unable to extricate themselves from the shackles of an abhorrent situation inherently created by the consumptionism and consumerism that grips much of the world’s population.
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Nearly everyone wants to get rich in life. What separates those who seem to have all the answers from those that are constantly jumping from one ship to the next, never able to truly find their gravy train?
If you’re at all serious about the longevity of your wealth, then you’ll heed the advice that’s been passed down through the ages. While it’s been largely ignored by most, it’s been harnassed by some of the world’s richest and wealthiest individuals throughout time.
How do the rich keeping getting richer while the poor keep getting poorer? Is the game actually rigged against us? Are we, in fact, doomed to live ordinary lives, merely controlled by our hedonistic desires and pleasures, forced to succumb to our animalistic urges, never able to actually get ahead in life, let alone get rich?
What are the secrets to getting rich in life?
The secrets to getting really rich in life aren’t secrets. Much of the world’s denizens and a large part of every country’s population actually live in stark contrast to these so-called secrets to getting rich.
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1. Live below your means.
The first so-called secret to getting rich is to live below your means. Don’t spend more money than you make. Whether it’s to revel in the perception of being more well-off than they actually are, or some other purpose, this is the truth across much of the developed world.
55 percent of Americans have stated that they either break even or spend more than they make every single month, according to a survey from The Pew Charitable Trusts, which concluded its findings based on responses from 7,000 U.S. households.
2. Save 20 percent of your income.
That same survey from The Pew Charitable Trusts found that one-third of Americans have absolutely no savings at all. In order to get rich, you need to save at least 20 percent of your income off the top. Everyone has heard this before, but how many people actually follow this advice?
The term “pay yourself first” holds major weight here. When the right opportunity comes by, you need cash to seize it.
In another survey, it was determined that nearly half of all Americans have no retirement savings. And that nearly 70 percent of all Americans have less than $1,000 in their savings accounts, and are one small emergency away from a total and complete monetary collapse.
3. Meticulously track expenses.
The next step to getting rich? Meticulously track every red cent that you spend. Not just the big expenses.
Chart and plot those expenses over time using widely available software. See where your money is going.
As easy as it might seem to ignore the little stuff, so to speak, the more you sweat the details, the better off you’ll be. Stop eating and buying expensive lattes out when you know you can’t afford to do it.
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4. Eliminate bad debt.
Don’t get me wrong, not all debt is bad. Other debt, such as revolving credit card debt and high interest rate loans, is bad debt.
When you’re debt-free from the bad debt (not the good debt like mortgages for investment properties and loans to grow you business, for example), take that money and put it towards your savings. Once you’re debt-free, the trick is not to go spending cash and splurging on a vacation or a new car. Stay focused.
You can’t get rich in life when you spend a large majority of your income paying interest payments on money that you’ve already spent. Take the highest interest rate card or loan and double the minimum payments until it’s paid off.
5. Own the roof over your head.
It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.
Even if you don’t have enough money saved for a down payment right now, figure out what it’s going to take to buy your home. We’re not talking about your dream home here. Over time, the money spent on your mortgage is far better invested than money spent paying rent.
No matter what it takes, even if you have to downgrade your living situation, you should do what it takes to purchase a home. Sit down with a mortgage broker and assess your situation. Set some goals and create a plan of action.
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6. Decimate your bad habits.
They stop us from losing weight, making more money, saving, investing and everything in between. The only way you can actually get ahead in life is to decimate those bad habits.
It’s hard to achieve something that takes so much of your energy, such as getting rich, without eliminating your bad habits. I’m not just talking about poor financial habits; I’m also talking about any other habit that eats away at you, physically, emotionally or mentally.
Obviously, success in anything isn’t just about eliminating the bad habits that hold us back; it’s also about ensuring that we employ some of the best habits in life and the best habits in business to virtually guarantee our future outcomes and make progress on autopilot.
7. Set daily goals.
Getting rich is a monumental goal. You can’t simply say that you want to be rich.
Daily goal setting provides milestones on your way to your bigger goals. Break the big goal down to achievable daily goals that won’t seem so overwhelming. If you want a $10 million dollar net worth in the next five or 10 years, figure out what it’s going to take on a daily basis to move closer to that goal.
Obviously, you’ll have a hard time saving towards that massive goal of getting rich when you start out near ground zero or worse. Compound interest is very powerful, and even if you don’t save your way there, you can leverage the cash that you do make and tuck away to engage in smart investments that will produce high returns.
8. Manage your time effectively.
No matter if they’re a powerful politician, a business magnate or a famous athlete, they don’t have more time than you do. Time is life’s greatest equalizer.
There’s absolutely no way to get rich by wasting time on trivial pursuits. Manage your time by instituting an effective and smart time management system to stay on track towards your goals.
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9. Add massive amounts of value.
No matter what strategy you implement to make money (online or offline), without adding massive amounts of value, and doing it consistently over time, there’s almost no chance that you’ll get rich. Those that have added the most value to this world have amassed the greatest fortunes.
There are so many unscrupulous marketers who prey on individuals that are looking for that quick fix. If you want to get rich, you need to add massive amounts of value, and you need to do it constantly without fail over time.
The simple truth is that, one of the most fundamental principles of success states that you need to do the most amount of work for the least initial return. You’ll most surely fail if you look for shortcuts and hacks for getting rich quickly or without great amounts of effort.
10. Build multiple streams of passive income.
Anyone who’s serious about getting rich needs to build multiple streams of passive income. When it comes to amassing wealth, passive income is incredibly important. Simply put, you to need to generate your income on autopilot if you want to create a considerable net worth.
Whatever you decide to do, by focusing on passive income, you’ll do the work once and get paid repeatedly. There’s no way to scale your wealth or income by solely engaging in active income.
There are a number of passive income generating ideas that you could implement. Some of the most popular involve real estate and dividend income for those that can afford the often high-cost barrier of entry into those fields. Others opt for generating passive income by starting a blog, creating digital products such as courses or ebooks, and even creating online tutorials, just to name a few examples.
11. Invest in what you know.
If you’re serious about getting rich, you have to invest in what you know. If you know pharmaceuticals, get involved in biotech.
The better you know an industry or niche, the more likely you’ll be able to spot ideas that could possibly create massive amounts of income for you in the future. No one else is going to do this for you. And when you do invest in something that you know, be sure to track it vehemently.
It’s okay to put all your eggs in one basket, so to speak, as long as you watch them like a hawk. As soon as you get distracted or lose interest, that’s when things go downhill. If you’re serious about compounding your wealth, pay acute attention.
12. Mind your own business.
While you can get rich by working as an employee, it’s far more difficult. Instead, you should start your own business and mind that business.
Even though he went bankrupt once and was forced out of his second business, he didn’t throw in the towel. He minded his own business.
How do the rich keeping getting richer while the poor keep getting poorer? Are we, in fact, doomed to live ordinary lives, merely controlled by our hedonistic desires and pleasures, forced to succumb to our animalistic urges, never able to actually get ahead in life, let alone get rich? In order to get rich, you need to save at least 20 percent of your income off the top. You can’t get rich in life when you spend a large majority of your income paying interest payments on money that you’ve already spent. Anyone who’s serious about getting rich needs to build multiple streams of passive income.