Wealth: Everyone wants it, but few actually know what they have to do to get there. Getting rich is a combination of luck, skill and patience. You have to be at least a little bit lucky and build on that luck with your skillful decisions and then continue to handle the storm as your wealth grows. We're not lying to you - getting rich isn't easy - but, with a little persistence and the right information, it's definitely possible!
Steps
Method 1 of 5: Invest
Step 1. Invest in the stock market
Government bonds, stocks, bonds, or other types of investments can provide a high enough annual return on investment (ROI) that you can hold on to retirement. For example, a million euros invested with a reliable ROI of 7% means 70,000 euros a year.
- Don't be lured by the day traders, who tell you it's easy to put together a big nest egg. Buying and selling dozens of stocks every day is essentially a gamble. If it goes wrong, you could lose a lot of money. Not a good way to get rich.
- Instead, learn to invest for the long term. Choose good stocks with solid foundations and driving forces in industries that are prepared for future growth. And then let your investment take action. You don't do anything. Let the stocks rise and fall. If you invest wisely, you should make a ton of money.
Step 2. Save money for retirement
Fewer and fewer people are putting away money for retirement. Whether retiring is becoming a thing of the past or not, you need to plan and try to save for your future. Pensions are sometimes not taxed or are on a tax deferred basis. If you save enough in your retirement account, there is a good chance that this money will allow you to enjoy your old age.
- Don't put all your faith in social retirement. Perhaps it will continue to exist for the next 20 years or perhaps the pension system will radically change - perhaps taxes will increase or benefits will be reduced - and it will no longer be available in its current form. Make a contingency plan in case you can't count on retirement.
- Invest in a retirement account to which the worker can contribute a certain maximum annual sum. The money is then invested and receives simple and compound interest. If you wait until retirement to take the money out of your account, the money you make will not be taxed.
- Contribute to your retirement. If your employer pays your contributions, it means that for every euro you earn, he puts in the same amount. This is probably the closest thing to having "free money" in your life! Yes, it can make you rich.
Step 3. Invest in property
A good example are properties purchased and then leased, land in areas of strong commercial expansion, etc. The value of these types of purchases will most likely grow over time. Some areas will be better than others - you will need to do your research carefully.
Step 4. Invest your time
For example, if you like having some free time there is nothing wrong with giving yourself a few hours a day in which to do nothing. However, think that if you invested those few hours to get rich, you could stop working early and have 20 years of free time by retiring ahead of time. Is there anything you could give up in order to get rich later?
Step 5. Avoid buying items whose value will surely drop
Spending € 50,000 on a car is considered a waste because its value will drop significantly after 5 years, no matter how many changes you have made. Buying a car is a very important financial decision.
Step 6. Don't spend money on stupid things
It's hard enough to live on, but it's hard 'and' painful to spend your hard-earned savings in financial black holes. Re-evaluate the things you spend money on. Try to figure out if they are really worth it. Here are some things you shouldn't spend a lot of money on if you plan to get rich:
- Casino and lottery tickets. A lucky few make any money. Most lose.
- Vices like cigarettes.
- Unhealthy habits such as cinema snacks or aperitifs.
- Tanning lamps and plastic surgery. You can get free skin cancer if you want. And the redone nose and botox injections always give the promised results? Learn to age gracefully!
- First class air tickets. What are you paying that extra 1,000 euros for? A warm towel and 10 cm of extra leg room? Invest that money instead of throwing it away and learn to sit with the rest of us!
Step 7. Preserve your wealth
Getting rich isn't easy, but staying rich is even more difficult. Your wealth will always be affected by the market trend, and the market has its ups and downs. If you rest too much on your laurels when all is well, you will quickly return to square one when the market falls. If you get a promotion or raise, or if your ROI goes up by 1%, don't spend it all right away. Save a portion for when business is slow and your ROI drops by 2%.
Method 2 of 5: Get Rich by Working
Step 1. Commit to excel academically
Whether it's a four-year course or vocational training, some successful people gain further education beyond high school. In the early stages of a career, employers may require little beyond school background. A higher degree usually implies higher salaries, although not always.
Step 2. Choose the right profession
Analyze salary surveys indicate how much professionals in each reclaimed sector earn. Don't expect to get rich if you decide to rate the teacher instead of working in finance. As of this writing, some of the highest paying jobs in America are:
- Doctors and surgeons. Anesthesiologists also make over $ 200,000 a year in income.
- Petroleum engineers. Engineers who work with oil companies can lead a very comfortable life. In most cases, they make over $ 135,000 a year.
- Lawyers. They earn an average of just over $ 130,000 a year, making this field profitable.
- IT Manager and Software Engineer. If you are good at programming and are a computer expert, consider this very well-paid field. IT professionals regularly earn $ 125,000 a year.
Step 3. Choose the right place
If the place where you live doesn't offer many job opportunities, move elsewhere. If you want to work in finance, for example, there are far more opportunities in big cities than in rural regions and sparsely populated areas.
Step 4. Start small and progress gradually
Bet on quantity: that is, submit as many questions as possible, send resumes, participate in competitions to increase the chances of being chosen. When you find work, stay long enough to get the experience you need to keep going.
Step 5. Change job and employer
If you already work, look for a position that pays better. In addition, changing your environment will allow you to make new contacts that could be useful in finding an additional job. If you are currently a rated employee / worker it is also possible that your current employer will offer you a raise when you tell them that you are about to quit.
Method 3 of 5: Reduce Living Expenses
Step 1. Collect and use coupons
It is a great satisfaction when you can get paid to buy the household products you use regularly. Yes, you heard right. In the worst case scenario, you will save a couple of euros that you can use in times of difficulty. At best, you'll get tons of free stuff and get richer as you go along.
Step 2. Buy in bulk
It's not always the best way to shop, but it's usually the most efficient. If you can borrow or buy a membership at a wholesale retailer, it will be a real savings. In some cases, you will be able to find branded products for sale for a few euro cents.
If you are hungry and you like chicken, buy 4 pre-cooked chickens at the end of the day for huge savings when they are sold off. Freeze the ones you don't eat right away
Step 3. Learn to store food
In America, up to 40% of food is wasted before it is eaten. Succulent peaches, blueberries and even meats can be canned and eaten later. Be smart with the food you buy and eat it. Wasted food is wasted money.
Step 4. Reduce your bills
Electricity, gas, and air conditioning can all take a sizeable chunk of money into your monthly budget if you let them. But you won't, will you? You are about to take some smart solutions to keep your home warm in the winter and cool in the summer. You could also invest in or build solar panels to turn the sun's natural energy into electrical energy. Keep your bills low and see how much money you can save, putting you on your way to getting rich.
Step 5. Run a home energy test
It will allow you to find out how much money comes out of your home in the form of lost energy. Whether it's cold air in the summer or warm air in the winter, that's generally a bad thing.
You can perform the energy test yourself if you are the industrious type, but it would be best to hire a professional to complete the test for you. It should cost a few hundred euros everywhere, which is not cheap. At the same time, if that means insulating the house and saving € 750 each year, it is probably a worthwhile investment
Step 6. Go hunting or foraging for food
You may need to invest in tools and permits, but if you already have them, it's an easy way to get food. If you are ethically opposed to killing animals, it is quite easy to go in search of food, depending on where you live. It is enough to make sure only that food whose origins and properties are safe.
- Go hunting for wild boars, ducks or hares
- Go fishing
- Choose edible flowers, harvest wild mushrooms or forage for food in the fall
- Unleash your inner gardener or build your own greenhouse
Method 4 of 5: Save money
Step 1. Pay yourself first
This means that before you waste your monthly salary on that new pair of shoes or golf lessons you don't really need, put some money in your savings account and don't touch it. Do this every time you get paid and your savings will grow fast.
Step 2. Establish a budget
Decide which number you need each month to cover all the necessary expenses and leave a part for fun and free time. Respect that figure and don't exceed it.
Step 3. Change your house or car
If you own your own home, could you adapt to living in a smaller apartment, or living with someone? If you have a luxury car, could you switch to a used car or use it more rarely? These are all ways of saving tons of money every month.
Step 4. Cut down on expenses
Analyze how you spend your money and eliminate all frivolous and unnecessary expenses. For example, avoid going to that expensive cafe for breakfast. Although they may seem like only a few euros, at the end of the year they will be a nice nest egg.
Step 5. Keep track of your expenses
To boost the effectiveness of reducing expenses, it is absolutely vital to keep track of it. Choose one of the countless apps that perform this function, such as Money Lover or Mint, and record every single penny that comes out of your purse. Within three months, you should be able to know where most of your money is going and what you can do to fix it.
Step 6. Spend your tax refund wisely
In 2007, the average US tax refund was $ 2,733. that's a lot of money! You can use that money to pay off debts or create an emergency fund. If you invest that money wisely, it could increase tenfold after years.
Step 7. Avoid the credit card
Did you know that people who use credit cards for their purchases end up spending more money than people who use cash, on average? This is because using cash is 'painful'. Using a credit card, on the other hand, does not induce any pain, perhaps a pinch. If you can, delete your credit card and see how it feels to pay in cash. You will probably end up saving a ton of money.
If you have a credit card, do something to reduce your expenses. For example, use a prepaid and pay off your debts monthly to avoid paying interest
Method 5 of 5: Getting Out of the Mortgage
Step 1. Refinance your home loan at a lower rate or for 15 years instead of 30
In this way, you will only pay a few hundred euros more per month, but you will save hundreds of thousands of euros in interest.
For example: a $ 200,000 mortgage for 30 years will cost you another $ 186,500 in interest, so you will actually pay a total of $ 386,500 over the 30 years. On the other hand, if you are willing to pay a few extra hundred euros (for example, 350) per month to refinance a loan for 15 years (usually at a lower interest rate, for example, 3.5 %), you would pay the mortgage in just 15 years, saving € 123,700 in interest. Talk to a loan officer to learn about the options available
Advice
- Buy clothes in the fall or spring when you get good deals.
- Buy only what you need and not what you want.
- Pay the urgent bills first and then focus on the others until you are completely debt-free.
- Try to make a profit from every opportunity.
- If you are struck by the craving for something expensive that will satisfy you immediately, try distracting yourself with a small reward rather than being seduced by the larger expense. Give up that designer dress or bag and treat yourself to a nice ice cream or a good movie. The movie ticket will be much less expensive than a designer bag, but it will give you the same feeling that you have done something "just for you".
- Every night before going to bed, empty all your pockets and put any change you find in a jar. It will take some time, but after a year you could have saved up to 150 euros.
- Keep personal expenses to a minimum and reinvest in your company until you are financially independent. This means being able to cover the expenses of the house and those of the company for at least 6 months without the help of loans from the bank.
- If you have holes in your hands (the money quickly disappears as soon as it arrives) and you spend money on a new car when your current model works great, force yourself to wait a month before buying it. If the temptation is too great, hand the money you would have spent to a trusted family member or friend to keep for you.
- Surround yourself with self-made millionaires. Learn from them. It is said that similar things attract each other. Find as much information as possible on how rich people managed to make money and what they are doing now to stay rich.
- Remember that sometimes you have to spend money to get rich.
