How to Get Rich Quickly was written by Theresa Bedford and originally appeared on Wealth of Geeks. It has been republished with permission.
Let's be honest. Who doesn't want to be rich? Even with all the talk that says building wealth matters, people still want to be rich. There's something about the allure of having lots of money. But is there such a thing as getting rich quick? Is there anything we can do to get started today?
Please keep reading to learn more about what it means to be rich and how to get rich quickly. Hear it straight, with no marketing fluff in this article.
What Do We Mean By Rich?
“Rich” is all about how much money someone has. It's about status and worldly things. Rich people may or may not have to work. They may or may not worry about money.
No one dollar figure makes someone rich. However, most people agree that millionaires are rich. And some would argue that people earning half-million a year are pretty rich too. But this isn't necessarily sound thinking. Think about it, would you call the millionaire with $2 million in debt from credit cards, mortgages, and personal loans rich?
In an article with nine financial advisors, Business Insider found that being rich didn't mean having a big account balance. Having millions of dollars in the bank didn't make some individuals feel rich because they never have enough. Instead, they define rich in personal values, making financial decisions without worrying about money, meeting your financial needs and wants, independence, and comfort.
What Do We Mean By Quickly?
So, if “rich” isn't defined well, can we determine “quickly”?
Unfortunately, the answer isn't black and white. Quickly is a matter of perspective and means to do something without haste or hesitation. It's about minimizing the time required to do something. It means there's no time for waste or mistakes.
How To Get Rich Quickly
Getting rich quickly is about not putting something off for tomorrow. It's about getting to work today. So, let's get straight to the point with these 19 tips today.
Don't Speculate With Your Money
Of course, speculating can be a quick way to make some money. But it's an even faster way to lose it. To get rich quick, you don't have time to waste money. Which means you don't have time to speculate with your money. You have to get to work with investments that have strong return rates – not a bunch of maybes. Speculating is on the spectrum of gambling and taking a chance with the lottery. The odds are low that you're going to hit it big. If it were, we'd probably see a lot more people doing it.
Beware Of Pyramid Schemes
OK, while looking to get rich quick, beware of pyramid schemes. According to Investopedia, a pyramid scheme is a sketchy business model where members pay upfront costs. The upfront costs get funneled back up the chain. Pyramid schemes are designed to benefit those at the top the most. Many rely on recruitment fees to make money rather than actual goods or services.
Building businesses for yourself rather than relying on others is essential. So what can you do to be CEO of your own company?
Successful people add value. Learning to add value to everything helps build wealth. So whether you're starting a business, working a side hustle, or employed, you need to add value in everything you do to maximize your returns. That will lead to maximizing your income. Which will increase the pace at which you can become rich.
Focus on offering your customers or clients better quality than the next person. Provide something that is needed. In today's world of interconnectedness, people expect things to feel genuine, easy, convenient, and straightforward.
Provide helpful information with no strings attached. Look for ways to offer customers free actionable tips and teach something novel. Be engaged with customers and the world. You never know who you're helping.
Adding value is really about adding something to someone else's life. It's about connection, relationships, and leadership. Inspire people. Lend a hand when you can. Be there for someone else. And pay it forward. Not only will this improve your circumstances, but it will help others.
Create a Plan and Follow It, But Be Flexible
Housel explains that countless people have lost millions because they felt they didn't have enough in “The Psychology of Money.” Therefore, realizing when enough is enough is important.
To be successful, set SMART goals that are specific, measurable, achievable, realistic, and time-based. Then, develop a plan to reach those goals and follow them. Sure, there are times when you may have to modify your plan. So flexibility is essential. Create a margin of safety in your plan by having a budget, emergency plan, flexible thinking, and a realistic timeline.
You can't get rich by putting your money in a savings account. You need to develop a strategy that puts your money to work. Money making money is the quickest way to get rich. Learn how to invest in the stock market and work the magic of compound interest. Let's do some quick calculations assuming a 10% annualized rate of return.
Five hundred dollars a month for 30 years will compound into more than $1 million in 30 years. Imagine starting at 18 and having a million dollars before the age of 50. And what about this: take $1K from your side hustle and invest it for 30 years to build more than $2 million in 30 years. If you're looking at early retirement, invest $2K a month for 20 years and have nearly $1.4 million.
Start a Business
Business owners have more control over their earning potential than employees. They control the decisions to grow the company and change profit margins. Larger profits lead to more significant paydays for business owners. From rags to riches can be a challenging journey for business owners, but the payoff can be infinite when looking to get rich.
The road to financial freedom and creating wealth is not easy. It's often met with resistance and failure along the way. However, wealthy people tend to express gratitude for what they have and how they got there.
Practicing gratitude now is one strategy to get rich quickly. Appreciation will keep you humble and help you overcome difficult situations. Find positivity in the worst conditions, as things can always be even worse.
So, I know we're talking about getting rich quickly, but that doesn't mean we have to be impatient. Don't let your emotions get the best of you. Being patient can help you get rich quickly. But, on the other hand, impatience leads to irrational decisions that may hinder your long-term plans.
Fear of missing out is a common reason that people chase stocks and try to time the market. Two things that do not help people make more money while investing. Keep your emotions out when trying to get rich. Focus on your plan and stick to it with patience.
Take Calculated Risks
There's risk-taking in investing and in business. Side-hustles have risks too. Taking a risk is inherent in getting rich. However, consider taking calculated risks. Be aware of the pros and cons while building a plan to maximize rewards and minimize losses.
Take a look at your role models and the people around you. Is there anything you can learn from them to inform your decision-making? For example, how will you handle losses? How will you take wins? Are you ready to adapt and make changes?
If you find that you would be OK with a worst-case failure scenario, the risk might be worth taking. If you find that you wouldn't survive with a worst-case scenario, the risk is probably not worth it. Don't be reckless. Be honest with yourself and where you are. Only take risks that you will be able to handle. Just know that failure isn't always a bad thing—success and getting rich lie somewhere in the middle.
Make Smart Investments
Smart investments are essential to getting rich. You can't afford to lose money when you want to get rich quickly. Of course, don't invest with money you don't have. Never use the money you need for living expenses. And don't go into debt to invest.
Calculate your risk tolerance when making investments and only make investments that you have carefully analyzed. Making intelligent investments makes achieving your financial goals much more manageable and attainable. You need to understand how the stock market works and how to buy stocks, ETFs, bonds, real estate, and other types of investments. Always do your research. Learn how to do a fundamental stock analysis.
Diversification is important. It manages your risks and covers you when one investment performs poorly. A well-diversified portfolio reduces the extreme swings in portfolio volatility without lowering the overall return rates.
Learn about personal finance
There's so much to learn about money and building wealth. Start reading for 20 minutes every day on topics such as investing, money management, debt, retirement planning, and beyond. You can also check out blogs and podcasts on personal finance and investments. It doesn't matter how much you know; there's always more to learn.
Invest in your education and your personal development
Aside from learning more about personal finance, invest in your education overall and your personal development. In the book “The Next Millionaire Next Door: Enduring Strategies for Building Wealth,” the author Sarah Stanley talks about how a person dedicates their time and thoughts influences how much wealth they build.
Minimizing distractions to focus on you is life-changing. Most of the world's successful people read for leisure, exercise, and have hobbies. Life is about more than money. Yes, you need money to survive. But what does life mean to you? Have you taken the time to discover who you are and what your purpose is?
Personal development topics such as health, exercise, kindness, leadership, giving, and more can contribute to an overall happier lifestyle that leads to a more productive lifestyle. You may find that fulfilling your personal goals outside of monetary things improves your financial situation too.
Create and stick to a financial plan
You really can't do much without a plan. And getting rich isn't any different. Be sure to create a SMART financial plan that outlines where you want to go. Strive to max out contributions to your employer-sponsored plans and your Roth IRA. If you're young and looking to get rich, you also need to consider investing in an individual brokerage taxable account. Invest early and invest often. Make sure your goals are realistic and achievable so that you can stick to your budget and build wealth.
Build Multiple Streams Of Income
Millionaires have, on average, seven streams of income. What can you do to have multiple streams of income? Passive income is income that requires minimal time and effort to generate money. Most people think about dividend income, royalty income, capital gains, and real estate income as types of income that most wealthy people have.
Start A Side Hustle
Starting a side hustle is a great way to make extra money. anything extra will help you reach your financial goals quickly. Be sure to take advantage of the extra money by putting it to work or growing big enough to become rich. Side hustles help pay off debt early or invest in building wealth. Your growth potential with a side hustle is infinite.
You can try starting a blog, creating content on YouTube, becoming a virtual assistant, playing games, freelance writing, graphic design, coaching, and many more options. So look for something you're passionate about and start hustling.
Create A budget
It's not really about how much money you make. It's more about how much you keep. A budget helps keep you on track and ensures that you're not wasting your money. A budget will help you spend less than you make, invest more, pay off debt, and save for emergencies.
We all like to talk about our rate of return on our investments. It's exciting. Double-digit return rates are an investor's dream. But if you're not maximizing your contributions, the rate of return isn't so significant.
Your rate of saving is the secret to building wealth and getting rich. It's less about how much money you make and the types of returns you get. It's really about how much money you keep, invest, and put to work for you with assets.
The only way to increase your rate of saving is by minimizing your expenses. Living below your means affords you more income to invest upfront and reap the benefits later. If you're looking to build up your net worth, start by budgeting and minimizing your expenses.
Build Good Financial Habits
The primary money principles of building wealth will also help you get rich quickly. Self-made millionaires frequently brag about budgeting, avoiding debt, keeping their cars long-term, having emergency funds, investing regularly, minimizing expenses, maximizing cash-back rebates, and constantly learning.
They also look for additional income streams and try to ignore their emotions when dealing with financial situations.
When you build good financial habits, your financial situation naturally improves. Habits become effortless over time. So give it a try today. Find ways to increase the amount of money that you keep by building good financial habits.
It's time to get to work. You can't get rich quickly without time and effort. Remember, money is time. So be consistent, disciplined, and dedicated to your plan. And don't forget to be flexible. Things are constantly changing over time.
Being rich is subjective. The more money most people have, the more they spend. They never feel like they have enough.
You can't compare yourself to someone else. So, what do you need to think of yourself as rich? How much money do you need to live the life you want without worrying about money?
You can do many things to make money and build wealth, like starting a side hustle, making intelligent investments, and sticking to a financial plan/budget. So, go out there, make a plan to get rich, and get to work conquering that plan. It's that simple. The sooner you start, the sooner you'll get rich.