Like most pragmatic people, you’re probably not hoping for fast and extravagant wealth. Instead, you likely want to build long-lasting and sustainable wealth that’ll provide financial security to your family and fund your desired lifestyle.
This type of ‘get rich slowly’ wealth is within most people’s reach. But, you can only achieve it when you have the right mindset.
‘How to becoming super rich’ really boils down to three things:
1. Make it first: Before you start saving and investing, you need a secure source of income that covers your necessities and leaves some leftovers.
2. Save it: Once you have enough to cover your basics, you need to create a practical savings plan.
3. Invest it: Once you’ve started accumulating savings, you need to invest the funds prudently.
So if you’re wondering, “Will I become rich?” Here is how you can reach your desire:
1. Stop Obsessing About Wealth
This is counterintuitive, but being laser-focused on the amount of money you make can distract you from taking the steps that will truly enable you to create long-lasting wealth. So shift your point of focus. Look at it this way, money is not the primary goal; instead, it’s a by-product of you making the right decisions.
2. Be a Master of One Thing
Settle on one thing that you have an interest in and that you’re comparatively good at than your peers. Then, become maniacally focused at mastering that one thing: practice, evaluate, and refine. Be self-critical and taking in both positive and negative feedback to ensure you continually improve in that one thing.
People who build wealth from nothing are better in one thing that almost everyone around them. You, of course, need to pick a skill that the world is willing to pay for – for instance, leadership, sales, tech skills, and data skills.
Excellence, in itself, is a reward. But excellence also commands high pay – and greater fulfillment, a greater sense of self-worth, greater feelings of achievement, greater respect, all which enrich your living experience in non-monetary terms.
If you’re at the starting point of your career, or if you’re contemplating a career change, interrogate these four considerations as you decide on the career direction that will help you create wealth in the long-term:
1. Do you enjoy it? You’re much more likely to thrive in and thus gain bigger financial rewards from a career path that you truly enjoy.
2. What are your talents? You’re much more likely to excel in careers that encompass areas that you’re talented in – this should translate to a bigger paycheck.
3. What pays well? Seek out careers that cover your interests and that offer decent pay.
4. How do you get there? Once you’ve zeroed on a great career option, map out how you’ll get your foot through the door – the education and the time investment needed.
Taking these three points into consideration will put you on an exciting and a well-paying career path.
3. Create a Strong Financial Foundation
Creating wealth without first establishing a solid financial foundation is like building your house on quicksand. We’ve seen this many times when individuals stumble into sudden wealth through a winning lottery or celebrity and then lose it all because of bad investment decisions and impulsive spending.
So, what’s the bedrock for building wealth?
1. Education: You need to learn how to manage money. Mastering the art and science of investing is a perpetual process; never stop learning.
2. Mindset: The rich make money and then use it to make more money. But a lot of us make money and then spend it on things whose value depreciates fast or objects with little utility. When you start thinking like the rich, you become shrewder on what you spend your money on, and your savings rate increases.
3. Aversion for consumer debt: Relying on consumer debt cripples your ability to build wealth. This includes car payments, credit card debt, over-utilization of home equity, and car payments. It’s way better to acquire stuff with cash than to buy them through debt.
It’s seen as normal to buy a car and pay for it in five years. But, even if the interest rates are low, those car payments eat into your savings. You’re better off buying a car you can afford in cash. If normal behavior led to wealth, everyone would be rich, right?
The earlier you establish a solid financial foundation, the sooner you surge in an upward wealth trajectory.
4. Increase Your Income
In the initial stages of wealth creation, career and business earnings are more impactful than investment income. If you earn more, then you have more to invest. Over time, the investments become more impactful as they gain traction through compound interest.
So, how can you increase your earnings?
1. Grow career income: Whatever career path you’re on, explore how to best bolster your earnings through advancement, business ownership, and bonuses. Take a look at those topping your field, evaluate how they go there, and use that to craft your career.
If your career offers limited income potential, consider the alternatives. This is easier said than done. Becoming super rich. But pursuing another certification, degree, or even post-graduate studies can shift your career path to a more lucrative end or can give it a nice jolt. But, ensure your investment in education offers worthwhile returns.
Taking online courses and reading books are cheaper substitutes for formal education, and they offer high returns for investment.
2. Side hustle income: Starting a business on the side can inject more funds to what you’re already getting from your regular gig and thus help increase your savings.
If you’re disenchanted with your current career, but you’re at a position where it’s difficult to shift careers, starting a side hustle can be extremely rewarding both monetarily and personally.
5. Save as Much You Can
You make a decent income, you live well, but you hardly save any money? Why is that? There can only be one reason, you either don’t budget, or you’re not disciplined enough to stick to your budget. To create a budget or to get your current budget on track, follow these steps:
1. Track your transactions for a month. A financial software/app can help you with this. Ensure you delineate your spending into categories. Being aware of your spending habits can help you control your spending.
2. Eliminate superfluous spending. Define your needs and wants. You obviously need food, shelter, and clothing, but you’ll need to address other obscure ‘needs.’ For instance, if you realize you’re spending more on food by eating lunch at a restaurant daily. You can save some money by bringing lunch from home for maybe two to three days per week.
3. Build a cushion. The future is mostly unpredictable. To cushion yourself from unforeseen setbacks like health issues or job losses, save about seven months’ worth of your living expenses. Creating a financial cushion can be daunting, so smart small.
The most critical step is to outline your exact needs and your mere wants. Becoming super rich. Finding ways to save some bucks here and there entails things like learning to cook, buying quality furniture from thrift shops, and programming your thermostat to switch off when you’re away from home.
This doesn’t mean you should live a miserly life. Once you’ve met your saving goals, you should reward yourself and indulge (a reasonable amount) occasionally. That way will be motivated to make and save even more money.
6. Invest First
Before you spend, invest. That way, you’re less likely to use your income superfluously. And when your current investment is working right, expand on it or begin another interesting investment.
New investors are often confused and disoriented by the myriad investment options, economic crises, and market turbulence. Consequently it is critical that before you dive into investing in the stock market, bond market, real-estate market or high-potential start-ups, learn the basics of market history and how you are going to benefit from it. Becoming super rich. Note that what is working right for one individual is not always ideal for the other. Find what suits you for becoming super rich.
That way, you’ll be able to spot trends and see opportunities before everyone else. If you aren’t familiar with the investment landscape, you will get lost.
7. Create Habits That Ensure Progress
Achieving a goal is hinged on creating empowering habits. If your goal is to write a 300-page book, you may have to develop a 4-page-per-day writing habit. Hoping and dreaming won’t get you closer to finishing your manuscript; it’s your daily habits that will ensure you reach your target for becoming super rich.
Set saving and investment goals, create habits and systems that shore up those goals, and then diligently track your progress. Eliminate what doesn’t work. Improve and duplicate what does work. Streamline, revise, adapt, and continually improve your habits and systems.
Soon you’ll be okay. Then you’ll be above average. And ultimately, you’ll be outstanding. And then, one day, without even noticing, you will be a millionaire.