3 Ways to Get Rich

I want to be rich and I am figuring out how to get there. There are many ways to become rich and the definition of rich will be different to everyone too. Some may think being able to spend each day meaningfully is considered rich but what I am referring to is to have an abundance of money to spend, to lead a lavish lifestyle or to be so rich that you can retire right away and spend your time in any way you like. Salary alone won't get you there.

1) Invest

We need to make money work for us and one of the way to do so is by investing them in properties, shares or stocks. Investing our money can also generate passive income, for instance dividend income from shares, rental income from renting out properties. In good times, we can cash out our investment and get some capital gains. I am not suggesting that everybody should start to invest their hard-earned money right away because if you are not sure what you are doing, you might lose them all. 

2) Make More AND Spend Less

I have previously blogged about Saving Money vs Making Money and there is a formula which we should remember pertaining to wealth.

WEALTH = WHAT YOU EARN - WHAT YOU SPEND

Increase your income by doing some freelance work, starting a small business etc. At the same time, spend lesser and wisely. Start bringing your own lunch or cut down on buying coffee and make your own. 

3) Start NOW 

We can read many investment guides or do up a schedule to save a certain percentage of our income but we will never be rich if we do not start. Many times we think and tell ourselves we will start tomorrow, next week or next month, but why not now? You may say you are unable to save the intended amount you want but it doesn't matter, start small and slow is fine. If you have not heard about the power of compounding interest, you can read it here. 

Wanting to be rich requires some sacrifices but the end result is rewarding.