Getting rich takes two steps. This article is about those two steps.
This article is not about the best way to manage your money for all round happiness but purely increasing your net worth as fast as possible because some people have this goal.
Many people want to know specifically how to get rich, but the reality is there is no one way to get rich.
You can make money in anything. Money isn’t real, it is an exchange of value, so there is many different paths to riches.
But one thing is for certain, getting rich takes two steps. Two steps is all you need whatever path you take.
What are the two steps to getting rich?
INCOME – EXPENSES = RICH
What you earn minus what you spend will determine your net worth.
The level that you follow this equation will determine the magnitude of your net worth.
To get richer than you are now you need to focus on creating a massive income while cutting expenses to the minimum.
It doesn’t matter where your net worth is at today or what situation you are in, anyone can follow this simple equation and start building their net worth today.
A lot of people will tell you “this is how to get rich” “you need to do this” “you need to do things this way” etc. But there is no right or wrong way to do this.
This equation is all you need to know. Then you need to focus on increasing income and minimizing expenses until you hit your net worth goal.
Here is a list of some ways to do both that I can think of.
Don’t waste money on cigarettes, booze, gambling
Take your lunch to work most days
Live in a property with cheaper rent/mortgage
Shop around for better value insurance
Set a budget
Don’t buy unnecessary things
Don’t buy depreciating assets
Buy things on special, deals
Be a minimalist
What can you think off? The idea is to keep expenses to the minimum. Read my article how to save money
Get a promotion
Go to college and get qualified to get a high paying job like a doctor, lawyer, engineer
Get a second job
Have a side business
Work full time in your own service based business like plumbing, car detailing, book keeping
Leverage other people’s efforts by hiring employees
Start a product based business like a store, restaurant, work shop
Take an existing business in an existing field and make it better
Innovate something in the market place
Leverage other people’s money into investment
Write a book/ebook
Have an online course
Have a YouTube channel, blog
Make money from ads and affiliate marketing
Have a online serviced based business like graphic design, copy writing
Invest in stocks, real estate, cash
Those are just some ways to increase your income, what can you think of?
If you focus on both increasing income and minimizing expenses you will get richer and richer
Be careful when investing large upfront cost into a business or investment though because If that fails it will set you back.
But that’s it, that’s how you get rich and that’s the only two steps you need to know.
It’s so simple but people don’t think about it and focus on it.
Whatever your situation is today, if you want to increase your net worth, start focusing on increasing your income and minimizing expenses.
Disclaimer: The financial information in this article is general only, before making any financial decision you should seek the advice of a qualified professional, I am not qualified to give financial advice