Becoming a successful, rich person is not as difficult as it seems. Trust me; I'm not kidding! The world's youngest self-made billionaire is only 26 years old, and that's not too old, right? Somehow all of us strive to earn good money in life to spend a good living. Earning money is easy, but never quick! There are so many schemes on the internet that assure you to make you rich overnight. But none of them has proved to make anyone wealthy overnight. Even if it does, the fame and wealth don't last a long time. Let's firstly tell you about a few such rich-quick-traps.
First and foremost, the most common such fraud is Multi-Level Marketing or simply called MLM. MLM is a scam that traps thousands of people worldwide. Different companies come up with their MLM programs and ask you to invest money to stabilize your business. But wait! Is the business really yours? According to calculations, despite government crackdowns and negativity regarding MLMs, they still managed to make $36billion in 2015. That's a crazy big amount! However, you don't get your fair share. Thus you can't get rich overnight with Multi-Level Marketing policies.
The next scam I am going to mention is widespread. Almost all of us might have tried this at least once in your lives. Yes! You got it right. I'm talking about the lottery. People buy over-priced lottery tickets in the avarice of winning a larger amount. The fact stays that only one of the millions of people wins the lottery, but the vicious circle continues.
One of the most common things nowadays is becoming an internet sensation. It did not exist a few years back, but now people find this way comparatively easy than the others. However, this fame is very short-lived. Hence, the money that comes with it!
Now you must be wondering that if all these ways are not right to become rich, which is the right way? If you want to be productive and keep that wealth for a long time, you need to be successful too. There are a few simple steps that can make you rich, not instantly but surely, long-lasting!
does it require to start something? It requires the reason and logic behind it. Subsequently, you also need to know how you are going to manage the money. So, if you are willing to earn a fair amount of money, you should know what you are expecting to have in the coming years. And then work accordingly. You should make a financial goal every year and break it into 3 month milestones. This way you would be able to understand and evaluate how you need to start working. If you have a higher financial goal, it means a bit of more effort. You might need to have more than one job or business to achieve your goals. This is how setting financial goals help you evaluate your progress in the coming years.
It is a popular opinion that jobs only feed you, but don't let you save. So if you are looking to make wealth by working, you should start investing right away! Investing even a small amount of money can take you to places you would have never thought of. Some investment plans are like retirement plans. You fund your money in a particular area and get the profit gradually. Investing that amount of money every year would increase your profit, and within a few years, the profit amount is massive! You do not have to put a large amount for a more significant benefit, consistency is the key.
One of the easiest ways to invest money is by the 401k program. This program can be a great advantage if you put at least enough money into it to match your employers. This means that every dollar you contribute gets the same amount of match from your employer. It is the free money of your employer you can take advantage of.
Learn more about 401k here.
Let's say you invest a small amount of anywhere from $300 to $500 a month, till you're 50 years old. That makes like 20-25 years on investment with minimal amount. But this is going to be crazy in profit, which can be even up to a million! Isn't it just great?
A little example for you to understand more simply:
This is just a representation though the earnings and profits depend on the funds you invest in.
Taking risks in business is not everyone's piece of cake, but sometimes these risks can take you to heights! You might be thinking of this risk has a huge one, once its successful and starts fruiting, you are going to thank yourself for this risk. Step out of your comfort zone and take chances. Not that you should jump onto every random opportunity but, sometimes, if you feel that there is a 50/50 risk-benefit ratio, then it can be a good idea to take the chance. If you do not succeed, always remember experience is the most-worthy wealth of all.
This rule might not be the same for everyone, but many successful, rich people emphasize on this rule. This rule lets you save money without living hand to mouth. Being rich is essential, but being happy is more important. And what's better if you can be joyous and wealthy at the same time? The 50-30-20 rule asks you to divide your expenses rightly so that you don't run out of cash anytime. Because when you are short of cash, you ultimately spend out of savings, which we do not want to happen! The rule says that out of your earnings, 50% should be spent on necessities like the bills, rents, food, insurances, etc. The 30% of total revenues should be spent on your wants - you need a new dress or want to go to the spa, this is the money you should spend on the luxuries. And the rest 20% is the most crucial! This 20% goes to your savings. No matter what, pledge not to use this money for any of your wants.
We talked about saving the 20% no matter what and only spending the designated amount of money, but is it manually possible? We are human beings, and sometimes our brain tricks us into spending money at random places. You can stop yourself from doing that by managing your finances online. This not only lets you keep an eye on your spending but also enables you to observe the amount of money left for needs and wants. If you are exceeding that amount in any way, most of the online finance applications notify you about it. There are many applications available for this purpose, like Mint and YNAB that are free of cost. They also track your ATM to let you see how frequently you have been spending money. Other than this, you can also formulate your income and expenditure chart to keep a note of your expenses. This way you will know where you are spending the money, and this would save you from over-spending.
As already told, being rich is not difficult but needs effort and time. Yet, if you are in a hurry to be rich, you can make that work out too! All the business tycoons and business people have not reached this place through one business or investment plan only. They have several side businesses that work along to create the desired revenue. Research says that a millionaire businessman has an average of 7 trades. Okay, that sounds a lot and tiresome, too, but it's not necessary to have a real business. You can either employ any of your skills to make more money or quickly start making money online. Many different fields give you a chance to earn money through the internet like Software, Advertising, Reselling, Selling your product, Tutorials, and online courses, and many more. And if you are good with the camera, you can make a handsome amount through videography and v-logging.
It might seem difficult to you right now, but I can simplify it for you. You can earn $1 million just if:
· 1,00,000 people spend $10
· 10,000 people spend $100
· 1,000 people spend $1000
Once you get into the business and understand the tactics, it would be difficult for you to make a thousand people spend $1000. Though it needs building an audience and proper marketing, but I believe you would quickly achieve that number.
We talked about investing smartly and keeping the 50-30-20 rule in mind, but what if I tell you there are more ways you can save money. Spending your cash smartly means you have fewer expenses and more money in hand. There are a few tricks that we do not care to think about. But these tricks can be great for you if you want to become wealthy without living on a rock.
There are a lot of bills and subscriptions we pay over the month, so don't you think reducing them can be a significant help? Whether it's your cell phone plan, car insurance gym membership, or credit card payments. All these can save you some bucks through proper bargaining. What you simply need to do is call them and tell them that your finances do not allow you to take the services, but you don't want to leave them either. There are huge chances that they would lower your rates to keep you hooked.
This is one way, the other way is to bargain for your salary. Yes, if you are working for someone and your skill can help you earn more, do not miss the chance. Always ask for more than what the company has to offer. They would likely hire you at your choice of payment.
Now, all the money you are saving or getting extra can be utilized in a better way if you'd want. You can simply add this amount to your investments too. This way, by increasing your investment, you would be able to get more.
Let's say you were saving $300 previously, but now you start saving or investing $500 monthly, there is going to be an instant hike in the revenue over the years.
There are no hard and fast rules for being rich. You can take a step from anywhere and gradually reach your destination. But the only thing that makes you successful is consistency. So if you start today, or tomorrow, be persistent and confident about yourself. And no-one can stop you from achieving your goals!