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There has been an emphasis on savings or having a savings culture as the best way to get rich but studies have also shown that this is largely not a truism, don’t get me wrong, savings or having a savings culture is important but what good will it do you to skip basic necesities of life so you could save some bucks? The emphasis is not really on savings but on earnings or income.
There is a popular saying that if wishes were horses, beggers would ride. Now this is a very apt and wise saying based on the realities of life because it is the desire of many people to be as rich as the likes of Bill Gates, Mark Zuckerberg, Carlos Slim Helu and others on the Forbes list of richest people in the world. Records have shown that only a fraction of those on the Forbes bilionaires list actually inherited their fortunes while majority of the others went the extra mile to get to the top.
Here is why everyone wants to be rich but only
a few are able to make it
Several people have read tons of motivational books by renowned authors like
Think and grow rich by Napoleon Hill, The power of positive thinking by Norman Vincent Peale, The richest man in Babylon by George S Clason, Rich dad, poor dad: what the rich teach their kids about money that the poor and middle class do not by Robert Kiyosaki and the rest that teaches us ways on how to become rich and yet have remained average and struggling to offset bills while savings remain flat and in perpetual red.
Blog4passion have decided to really scratch deep beneath the surface to unravel the reason(s) why the status quo tends to remain the same despite “our best efforts” and equally provide solutions on how you can really become rich.
- Diversify your streams of income
Studies done by economists have shown that man’s want is insatiable; the moment our income increases, our expenses also shoots up as we try to accommodate new wants that emerge from the blues and before we could say Jack, a new equilibrium has been set as the rise in income is eroded by a proportional spike in expenditure which ultimately makes a mince meat of whatever gains we may have made in income.
Although, this outcome is not entirely negative because our standard of living also shoots up in the process, however, the best way to cushion the effect of this and be able to significantly save more is to diversify our income base to incorporate several sources and by so doing, you will not only increase your overall income base but it also becomes easier for you to save more by channelling a particular or multiple abstract income sources directly to your savings plan while you make do with your primary source of income.
- Endeavor to save up to one hundred thousand dollars ASAP
This is very important, having a significant capital base or savings of at least one hundred thousand dollars is the first vital step to becoming rich and just like the above point emphasized, this can be easily achieved in no distant time by having multiple streams of income rather than by sacrificing important basic needs that requires a few bucks to offset.
- Invest in assets rather than liabilities
A lot has been said about how important it is to delay gratification when on the road to riches, and nothing has been more factual than this. Man’s wants and needs has been categorized into two, namely, assets and liabilities. The difference between the two is that while focusing on the former helps you to achieve riches ultimately, investing on the latter will only sabotage your efforts of ever making it big.
Majority of the things we spend money on that gives pleasure or momentary gratification falls under liabilities while others like real estates, stocks etc may take some time for us to start reaping its benefits but they are assets whose returns on investment are pretty good more often not.
- Be an enterprenuer
One thing that is universal about being rich is the fact that all rich people have one thing in common: they are all enterprenuers. Bill Gates, Warren Buffet, Mark Zuckerberg etc all have their own companies that keeps churning out money for them in huge sums even while they are sleeping or on holiday. There is a wise saying that while the poor work for money, the rich have money working for them!
While its true that salary and wages can make one comfortable, it can never make one to be super rich. Now is the time to open an enterprise regardless of how little your capital is, you can always grow it to become a fortune 100 company in future. The watch word is starting now because procrastination or waiting for the perfect moment is dangerous and such time may never come. A Chinese proverb says that the best time to plant a tree was twenty years ago and the next best time is now.
- Always live below your means
A lot of people have a difficult time cutting their coat according to their cloth and would rather take up loans they hardly need. This is a very bad lifestyle and must be jettisoned by anyone that really wants to get to the top of the food chain or join the big guys on the Forbes list of rich men. Its always much easier to spend than to earn but with self discipline, one can always siff out the wants from the needs and ensure that whatever dime that leaves the wallet is wisely spent.
Blog4passion have listed the five vital points that needs to be taking very seriously by anyone that really wants to make it in life.
You need to acknowledge that you will encounter challenges and moments of doubts and pessimism as you embark on this journey, but your ability to persevere with your eyes fixed on the bigger picture will determine if you will be able to escape the over crowded grassroot and step up to higher levels in life. Look at some other interesting book on the subject on Amazon.