Would you like to get rich? Stupid question, isn’t it? Who doesn’t want to become rich and let their bank balance speak for themselves? Sadly, it isn’t too easy.
Starting a business or earning a six-figure salary are two of the most common ways to get rich. But in a highly competitive and incredibly unfair world, the chances of you landing a high-paying job or starting a successful business are bleak. Not that you should not try, but if you feel it’s too late or you aren’t made for such big things, don’t lose hope.
Becoming wealthy is not easy, but it is not as difficult as most people think it is. In this article, you will learn a few effective ways to get rich without starting a six-figure business or earning a handsome salary. Let’s get started.
Start as early as possible
The more time you have by your side, the more chances you have to retire rich. The sooner you start earning money and putting it to work, the less time it will take for you to reach your goals. It’s never too late to begin.
Starting to earn at 27 is still beautiful, investing your first dollar at 30 is still possible, and buying a house at 40 is still a boss move. Don’t let people rush you with timelines.
The point, however, is to not waste time. If you start at age 23, you’ll need to save around $15 a day to become a millionaire by age 67. But if you start at age 35, you’ll need to save $30 every day to become a millionaire by age 67. And if you start young and invest intelligently, you can even make a million-dollar profile by the time you retire. So, start as early as possible.
Invest your money daily
Grant Sabatier, a 31-year-old self-made millionaire went from having 2 bucks in his bank account to $1 million in just five years. “Making daily deposits into your bank account is one of the single most important hacks I used to build wealth,” Grant said.
He set a daily goal of investing $50 per day, which soon became his daily minimum. He then increased the threshold to $70, $85, and $100 a day. And soon, he started investing more than $500 a day, and the rest is history. Even after being a millionaire, Grand makes a daily deposit of $200.
When starting out, you should not aim for depositing big amounts. Start small; even $5 or $10 per day is good for a start. Do it daily and increase the amount once you start earning more.
Automate your finances
For those who haven’t invested a penny in their life, financial automation can sound daunting. But once you’ve committed to investing money, making it automatic is the best choice. Automating your finances means the decided amount of money will be sent directly from your paycheck or bank account to your investing account. This way, you don’t need to worry about checking your finances every month or forgetting about your investments.
This is how Chris Reining, a self-made millionaire reached the $1 million mark at the age of 35. “Automating your finances is the only habit that leads to wealth. I automated my money several years ago and I did not have to bother about how much money should I invest and where,” he said.
So, if you have a steady flow of income and you’re investing a part of it regularly, consider automating your investments to see surprising results.
Save up on “the big three” expenses
A Minneapolis-based millennial managed to scale his bank account to $250,000 by the age of 28 and is set to retire at the age of 37. And he doesn’t own a business or earns a six-figure salary. One of the significant reasons he’s managed to save up so much money is by focusing on three particular expenses: transportation, housing, and food.
He believes that an average American spends more than 70% of his annual budget on these three expenses. And if you can limit those expenses, you’ll be able to save substantial amounts of your income. This way, you can invest more of your savings to work and make your money work for you as hard as you.
“Investing is what makes you rich. The only reason you should save money is to invest it, one day.”
– Grant Cardone
Focus on creating multiple streams of income
An average millionaire has seven streams of income. And if you want to make big bucks, you can’t rely on one source of revenue. Grand Cardone, who was in debt before reaching seven figures, says, “You’ll not get rich if you don’t have multiple streams of income.”
Thanks to the rise of technology, we’re living in a digital age, where starting a side hustle and generating income on the side is not difficult. Here are a few common side hustles to generate a decent amount of side income.
- Start a blog or YouTube channel
- Rent your car
- Buy and resell stuff (eBay)
- Babysitting or dog sitting
- Do freelancing
However, don’t get started with all the side hustles at once. Pick one and work hard on it until it starts yielding a steady income.
Do some math and create specific money goals
It is impossible to make money without having specific goals, and it is not possible to achieve goals without creating plans and deadlines. No matter how you’re planning to get rich, make sure to document your plan and progress.
Cardone says that it is critical to crunch numbers to see what it actually takes to become rich. The key here is to make goals that are Specific, Measurable, Achievable, Realistic, and Timely. Therefore, if you want to achieve a goal, you should know the possibility and the path of achieving it.
To make things easier for you, let’s do simple million-dollar math. If you have a $200 product, you’ll need to sell it to 50,000 people to have $1 million. If your product is worth $2,000, selling it to 5000 people will make you a millionaire. And if you sell a service, you’ll make a million dollars of 50,000 people paid you $17 each for 12 months.
Of course, these examples are simple and straightforward, but you get the point. No matter what your money goal is, plan it down on a paper.
But, don’t be ultra-frugal
You don’t want to sacrifice lattes for the sake of saving money. It might sound counterintuitive to the “the big three” point, but the key here is to avoid overspending. That does not mean you should not spend money on yourself and improve your lifestyle. Your goal should be to be happy. If eating out, wearing branded clothes, and traveling gives you joy, don’t give up on them to save money. But yes, you can limit them for sure.
For instance, if you get a Starbucks coffee twice a day and go out eating thrice a week, you can limit the coffee to once a day and eating out to once a week. An average Starbucks coffee costs $5, and eating out in a medium-sized restaurant costs $50. Thus, by limiting coffee to once a day and eating out to once a week, you can save $125 a week and $500 a month. Simple math, isn’t it?
Getting rich is overly complicated. Some say it’s too easy that you only need the mindset and hard work. Whereas, some believe it’s too difficult that only gifted ones can build massive wealth. Both of them are partially true, but you can lie somewhere in between and still be a millionaire. So, start early, create a “get-rich” plan, invest regularly, and focus on creating multiple streams of income.