How to get rich: changing your life is not that difficult!

I’ve wanted to write an article on how to get rich for a long time. You see, I guess you didn’t come this far just to earn an extra 15 dollars, right? If I help you to be rich, you will surely be happier. Yes?

Eye! Not that I consider myself a rich person. Far from it. Unlike…

But I imagine that many of you will want to know the exact recipe … and that you count on me a bit to share it with you.

Well … look, I have bad news.

I don’t know the exact recipe.

If I knew her, she would be writing to you from a 5-star hotel on a beach in the Maldives. And no, I can confirm that my co-working space has nothing to do with this … it doesn’t even have sand, wow …

However, I have to confess something: no one has the exact recipe. You can try to google it, but you won’t find it either. You will only come across scams, charlatans who will try to sell you their miraculous video training “Be a millionaire in 6 months” (man, it is that easy …), and single mothers who from one day to the next began to earn 350 dollars a day … (Yeah right…)

For my part, I have read a lot on the subject, some blogs or books by famous authors ( Rich Dad, Poor Dad …) or biographies ( Steve Jobs for example) … and using a little common sense, I have found the most important.

But this is like a cooking recipe: you can have the correct ingredients, but if you don’t know how to use them, you may cook something really bad.

Well, let’s get down to business!

Contents show

What is wealth?

For many, wealth is some kind of unattainable myth that can only be observed on television, in movies, or in series. And obviously, it has everything to do with money.

However, I think that wealth is one’s own concept.

Some people feel rich because they live the life they have always dreamed of, in the perfect place for them, with the day-to-day that they like, an enriching job, and a family life full of happy moments. Do you see it? Here I have not told you about money, or limousine, or the beach.

For other people, getting rich is synonymous with big cars, a big mansion on the beach, and a life without working. That kind of life requires a lot of money. In my opinion, I don’t think one can be happy without working, but that’s another debate.

Anyway, what I am trying to explain to you is that first of all, you have to decide what wealth is for you, and what conditions your life has to full fill in order for you to feel rich.

Would 1,000 dollars a month be enough to feel rich? 2000? 5000? Or do you want to be a millionaire? Do you only want to work one hour a day? Or do you have no problem working 8 hours a day on something you love? Do you want to live somewhere else? Or everything from your home? And by the way, what will you do with this money? With your newfound free time? As you can see, it’s not just about how to get rich, but why get rich?

The excellent book ” The 4 hour week “, where its author Tim Ferris explains how to earn a living working only 4 hours a week, begins by asking the reader about their real motives: How much do you want to earn? How many hours do you want to work? and above all, what will you do with your free time? That confirms the importance of starting your quest for wealth with the right foundations.

For my part, this book has made me think a lot about what I really wanted … And you should do the same.

How is wealth calculated?

Some (including the governments of many countries) say that wealth is calculated on the basis of income and wealth. I don’t know if it is a good way to calculate it. Look: you can have a high income but a lot of credits and debits, or even more expenses than income. In this case, I don’t think you could be considered rich.

When it comes to wealth, many homeowners don’t feel particularly wealthy despite owning a home in their own name. Perhaps they have inherited the property, or perhaps they have bought it via a mortgage; that is, despite being an owner, they may have problems making ends meet.

How to calculate wealth?

I like to talk more about wealth as the difference between income and expenses … It’s that simple.

For many, someone who earns 5,000 dollars a month is a rich person. But do you really think that this person is rich if his expenses add up to 4,500 dollars per month? Well yes, of course, you can afford it … Maybe yes, maybe not. In all cases, he cannot just save, anticipate some problem in the future, or anything … For me, this person is less wealthy than another who earns 2000 dollars a month and only spends 1000 dollars a month.

Then…. Tell me how to get rich!

After all these explanations and definitions, surely you want to know all the ingredients that I recommend you use to make your own recipe for “how to get rich”.

You will have understood by now, it is about reducing your expenses AND increasing your income.

We go there.

The qualities needed to be rich

You don’t get rich overnight.

There are only two ways to effortlessly get rich: win the lottery, or be born into a wealthy family.

In all other cases, with no exceptions whatsoever, it will take time and effort. Sorry for the bad news, but life is like this.

What rich people come to mind? Athletes, actors, musicians, and company managers. It has taken all of them a long time to achieve their wealth. It has not come overnight from heaven, and they have also had to face very aggressive competition.

To be rich, you will need the following:

Have very clear objectives: you have to choose your objective (the necessary “amount” that you want to achieve) in a realistic way, based on your needs and your projects. It is not necessary to be a millionaire or earn 10,000 dollars a month if you plan to live in the country without children
Determination: reach your goal whatever the obstacles are.
Perseverance: You have to keep going even when the road gets too tough. You have to get up after a fall or a crash. And reach the goal.
Stop believing in Santa Claus or the Three Wise Men: money does not fall from the sky. You will need to work, strain, and stop believing in the secrets and miracle recipes to get rich.
Choose Options and leave out others: you will want to try many different things to become a millionaire. And the more information and ideas you look for, the more options you will have. But you will need to choose one of these options, do not scatter.

Now that you know what qualities you need, let’s start by… saving.

Reduce your frequent expenses (bills …) by renegotiating your contracts …

First of all, you need to do an analysis of all your income and expenses.

When you do, you will quickly see that many expenses are repeated every month: insurance, bank commissions, telephony, Internet, water, electricity …

It is worth studying your contract in each case and seeing what the competition proposes, to be able to negotiate and improve your contract … or change your company.

Think about it: many companies take advantage of your laziness to change to increase your rates. And of course, you do not have time to see if there is something better elsewhere, and those companies know it. But trust me, there is something better.

Think of the hundreds of dollars that you could start saving.

Save on a day-to-day basis

I know. Saving money is not glamorous at all. And surely you did not imagine that to be a millionaire you were going to have to start by saving. However, it is often easier to start saving than to start earning more money. Just take good new habits, and get rid of bad consumption habits.

If you want to increase your wealth and your ability to save monthly, it is essential to start by saving first. You will have more money available, and you will learn the subtle art of financial discipline.

Are you interested in knowing more? I recommend you read this article: ideas to save money.

Pay your credits and your debts as soon as possible

Borrowing costs money, a lot of money. The same goes for being overdrawn or buying on credit.

The longer your loan, the more money your mortgage will cost.

Why is it expensive? Because banks have become experts at generating money (in their own interest) from your money (to your disadvantage). Banks are aware of this and use a variety of psychological tools to encourage you to consume more: buying with a credit card and paying it off multiple times, deferred payments, and the possibility of an overdraft that encourages you to spend more… Everything is planned so that you spend more money than you really have. And the problem with all that is that it costs you a lot of money. Too much.

So, don’t let them take advantage of you, and learn to avoid overdrafts, credit purchases, and loans.

One of the expenses where you can save more easily (in the medium and long term) is the return of your credits and your debts.

Thanks to the savings you have achieved with the tips in the previous section, you will have more money available each month, and your ability to return money will increase. Take the opportunity to advance the return of your credits or at least increase the number of your monthly payments and thus reduce the number of monthly payments and the cost of your loan.

All this has a ” snowball” effect: you start by reducing your current expenses, you have more money, which you use to reduce your credits and your debts, and then you have even more money.

And you know what? now you will be able to save and invest this money. And get rich faster.

Start saving at the beginning of the month

You have to save as early as possible in the month.

Many people wait until the end of the month to save what they have left. If you have had many expenses, you will no longer be able to save anything at the end of the month.

There is a much better way to save your money: put a fixed sum of money in a savings account (or elsewhere) at the beginning of the month, and thus you will be forced to limit your expenses (obviously, it is not about abusing your ability to discover). For example, if you earn 1000 dollars every month, you can deposit 50 or 100 dollars every 1 of the month into a savings account.

They call that forced saving and it could really change the way you consume and save.

Start saving soon in your life

Following the same logic as before, it is best not to wait too long to start putting money aside on a regular basis.

We take the case of two people who decide to invest their money, but one starts at 25 years old and the other at 40 years.

Marco starts at age 25 and puts 100 dollars every month in a savings account or some investment that gives him 5%. María starts later, with 40 years, entering the same amount (100 dollars). They both decide to stop saving when they retire, say at age 65.

Marco :

He has saved 48,000 dollars aside
Your investment is now worth 144,959 dollar

Mary :

You have saved 30,000 dollars in total
Your investment is now worth 57 272 dollar

With the compound interest mechanism, Marco has tripled his investment, while Maria barely doubled hers.

What is compound interest? They are one of the most used mechanisms to get rich; or perhaps the most used. Every month or every year, your investments earn you interest. The idea then is to reinvest these interests in your investment (instead of taking them out).

And obviously, this phenomenon is accentuated if the interest rate is 10%. In this case :

Marco would take 531,000 dollars (11 times the money he has put aside)
Maria would take only 118,000 dollars (not even 4 times the money she has deposited)

Do you already save money? Congratulations. Then it is time to deposit it in a fund, in the stock market, or invest it in real estate.

Invest your money

In the examples above, Marco and Maria have left their money doing very well.

Why invest your money in the stock market?

It’s very simple: nowadays, deposits and savings account no longer pay you almost anything. It is difficult to find something that will give you more than 1% a year for several years in a row. 1% is usually less than inflation so you really lose money.

It is more profitable, for example, to leave this money in life insurance, because these have various types of interests (some are safe and fixed, others variable and with more risks but higher). Or even in the bag.

For my part, I don’t really like the idea of investing in the stock market. It is that it gives me the feeling that the bag no longer has control, like a chicken without a head. In addition, more and more stock movements are controlled by automated computer programs, and that is a bit scary, right? …

However, it is just my opinion. On the Internet, you can find many experts (true or false) who promise you returns of 10% per year and claim that investing is the best way to be a millionaire. Some even promise you these returns per month.

And also, many have already become millionaires (or more) thanks to the Stock Market. I’m talking about Warren Buffett.

If you want to skip the step and start investing in the stock market, here are some tips:

Find out well before. You should spend days even weeks reading up on the subject, comparing opinions, and figuring out the best strategy.
Only invest money that you can afford to lose completely (yes, you have to consider the worst case).
Do not invest all your capital.
Diversify. You don’t invest everything in a single security or a single mutual fund or a single product category or a single country. The more diversified the better.
Avoid binary options, If you don’t know what it is, all the better.
Follow recognized experts, who have proof of your earnings.

These tips are valid for any type of investment.

Invest in real estate

You get it, I don’t really like the idea of putting my money in the bag.

In fact, I don’t really like the whole idea of investing my money; I am very afraid that the promised returns will not be met, and of saving at the wrong time and in the wrong place.

In particular, investing in real estate or real estate does not appeal to me very much. However, every time I read more blogs on this topic, more experts and it is clear that this is one of the best solutions to invest your money and get rich.

Things as they are: real estate is usually much less volatile than the stock market. On the stock market, it takes only a few days for stocks to lose half their value. For example when the Internet bubble burst, or the financial crisis recently. Although the real estate market will fall again, you would always keep your apartment or your house.
It is a good way to prepare for your future and the future of your children.
With the investment in housing for rent, it is possible to be profitable very quickly
Renting your home also allows you to avoid the volatility of the housing market: in previous years, despite the real estate crisis, the rental index has remained fairly stable.
You better control your investment: you decide the reforms you want to carry out, you choose the tenants, you choose the area, and you avoid properties with problems. You have more control over the value of your acquisition and how to increase it.

Thanks to the books and blogs that I have read, I have been able to draw some very interesting lessons. One of those very short lessons that make the difference between being rich and being a millionaire.

It is possible to invest without contributing any money.
If you are going for the investment to rent, I recommend not putting any money. Let your tenants pay with their rent the amount of the monthly payment of your loan (and more).
As is the case with many investments, in the niches you will surely find the best returns. Take a look at houses in towns or entire buildings …
You can sell your acquisition before having repaid the entire loan, and thus make small capital gains; It can be interesting if you need money or find even more profitable investments.
You can increase the performance of your property by creating value: reform the apartment, divide it into several small floors, and make use of platforms such as Airbnb to propose vacation rentals. How much could you earn? Do a simulation of this income on Airbnb, here.

There are other types of investments, which I’ll tell you more about. It is important to know: these investments can have higher returns than an investment in housing, and also require less initial money. And finally, they are niches, which means that there is less competition and the market is not saturated yet.

Increase your own value

Not much is said about it, but knowing your own worth is important.

What is your market value? What can you contribute to others and to the world?

Income often grows based on the added value you bring to individuals or businesses.

Therefore, to increase your income and one day becomes rich, it is a good idea to train yourself and improve your value.

Train yourself and increase your value. Invest in yourself.

Here are some ideas that can benefit you:

To learn a new language
Train you to negotiate better
Add a new skill to your skill list
Participate in coaching classes
Learn to program
Complete your university education
Participate in online courses or MOOC

For all this (and more), you can take night classes, go back to university, study at a distance, or train thanks to the Internet. You already know that on YouTube you can find many free tutorials on any subject, and of very good quality as well.

You could even contemplate a radical change in your life: change jobs and try something new, even if it has nothing to do with your training. Look, I’m a blogger now, but I have a degree in Economics.

If you look at websites like Geniuzz or Freelancer, you will see that there are many competencies that can be monazite online: retouching photos, editing videos, translating, writing, and much more… In this article, you can find more ideas.

How to get rich… creating an online business

Of course, I could not tell you how to get rich without commenting on the most used way to get rich in recent years. It’s all about online business.

Why is having an online business so interesting?

First of all, such deals are the only ones that can be done immediately with the entire world population. Yes. If you put something online, it is available to anyone with an Internet connection. There are usually no geographical limits, and therefore there are no limits to expansion.

If you also sell electronic products, your production costs are usually low and your profit margin is high.

Think about it: if you open a restaurant, or give private lessons in person, there will always come a time when you will not be able to do more than what you already do. You will have reached the limit.

But with an online business, there are no real limits. There are always ways for your business to become independent of you and your time. Every day, people go to Facebook and allow its founder (Mark Zuckerberg) to increase his wealth, without him having to do anything at all.

I give you another example: the info products. It is another way to passively generate income with your knowledge and skills. If you are interested in this topic, I recommend the course “Create info products and generate passive income” by Agustín Grau. I myself have followed him and he has resolved doubts such as: what knowledge can I sell? Where am I going to sell? How can I make my info-product my source of income?…. You can get a 30% discount using this discount code: 123MENOS30.

Find out more about this course by clicking here.

Ok, everything is nice, but now how do I do?

I am aware that many of you will only read my advice without trying to apply it … Knowing how to become a millionaire is one thing, taking the leap and trying is something else (very different).

Let’s see, I get it: it’s not like you can start an online business right now, or buy a flat tomorrow.

But there are things that you can start now to one day be rich.

For a full month, write down all your expenses. Yes, all. Even the loaf of bread. And also the Internet. Everyone.
Analyze these expenses. Are they really all useful? Can they be reduced? Take each expense, one by one, and see if you can eliminate it completely or at least reduce it. Especially when it comes to a contract (telephony, Internet, electricity …), perhaps you can group several contracts, ask for a loyalty discount, or go to the competition to get better prices.
Take a look at the article where I give you tips to save . And right now, choose 5 ideas and put them into action.
A month has passed. You’ve already saved a little money, right? It is the right time to set up an automatic monthly transfer to put this little money in a savings account or something else. You can even invest it now.
In parallel with all that, you start to earn money. Rent your car, share it with other passengers, help your neighbors, sell what you no longer use, answer paid surveys, and give private lessons … Ideas to earn money are not lacking.
Are you already saving, earning extra money, and even investing? Congratulations, you’ve already made a lot of changes. But this is not the time to slow down. Now is the time to earn a lot of money. Perhaps you will need to invest money, start a business, or start an online business. Or maybe a blog. You know better than anyone what you want the most. In this article, you will find passive income ideas. One thing is clear: anything is possible, and that depends on you. You will soon be rich.

Conclusion

I just gave you great guidelines for learning how to get rich.

Well, you may have already figured it out… you won’t get rich right after finishing this article… but hey, I hope it will put you on the right track and allow you to understand what getting rich really means.

Saying “I want to be rich” doesn’t do much good. You have to define what wealth is for you and identify all the efforts that you are willing to make to achieve wealth.

If you want to read more about it, I recommend two very interesting readings: