How do you build wealth, or become rich? Suppose you start saving money from the day you start you career, say 5% of your total income each month. Put that money into a savings account, and by the time you are ready to retire, you will definitely have a serious amount of money. Just by combining a regular deposit with the principle of compound interest. Fairly simple, but a shame that it takes so much time, of course…
How much money do you need?
Perhaps it is better to first establish what exactly “being rich” means to us. That is a lot less simple, because it means something different for every individual person. Some people define being rich as no longer needing to worry about money at all, which is a nice target. But how do you get to that point, without having to wait your entire life for it to happen?
The Internet is packed with websites that promise you that you wealth without any trouble or hassle, all you need to do is buy a report or subscription from that website and follow the guidelines in there. Unfortunately, the only one getting rich with something like that will probably be the administrator of the site. The probability that you are going to make any decent money from it is actually quite small. You might as well “invest” your hard-earned money in a lottery …
What makes people rich?
But what should you do, then? If you look at people who have enough money and have actually made that money themselves (and not inherited or “received” in any other way), you will see that these people have some things in common:
- They are not afraid to work hard.
- They have had one or more good ideas and are willing to “go for it”.
- They are able to get themselves to do things that others are unwilling to do.
- They are honest with themselves about where they stand and about where they want to go.
Undoubtedly they will have many more features in common, but most of them will be in the realm of Personal Development. If you want to know more about personal development, the Internet is full of information.
In the end, what matters most is that you are aware of how you deal with money and properly handle your income and expenses, by bringing balance into your earnings and spendings and spending less. Any “left-over” money should be saved or invested, which will eventually lead you to becoming wealthier and wealthier. Most importantly: do not touch your savings, let them grow!
One final tip: become an entrepreneur! As a business owner you have much more control over your income than you will as an employee.