While we all know there are many ways to get rich (including inheriting the money, winning the lottery, earning a high income and saving saving saving, living way below your means, etc.), there really is only ONE, SUREFIRE way to actually accumulate wealth. This is something everyone can do, everyone can learn and everyone can benefit from. While you may lose money in the process, you can’t get rich by playing it safe.
I’m a believer in being either all-in or all-out. I don’t really do things “half way.” This includes everything from working to being a mom to saving money to making decisions (I’ve said before I make decisions very fast). I’m on a quest to become a millionaire and while I know I could play it safe by working hard and saving my money, the reality is if I go that route, I won’t be a millionaire until I’m retired (at no earlier than age 65, of course). I would much rather be a millionaire while I’m young. I want to take risks, see my money grow, make my money start working for me, be able to enjoy traveling with my girls while I’m still young, be able to donate, etc.
So how am I planning on doing this?!
One surefire way to get rich
If you want to get rich before you retire and be able to enjoy your money at a young age, you need to invest, invest, invest.
The secret to getting rich is investing.
I know you’ve heard it before and I know I’m not the first person to say this. But the reality is, investing and taking risks are the only way you will accumulate wealth. Now, don’t just go buying random stocks and hoping for the best. You first need to LEARN everything there is to know about investments – including stocks, bonds, real estate, REITs, etc. Learn about dividends, rental properties, compounding interest and more. Read about start-up companies, understand how the market works and look for opportunities that will make you millions.
Wealthy people aren’t wealthy because they got lucky. They didn’t just so happen to pick a completely random stock that sold for 10 times more than the original price. They learned, they knew what they were doing and the moves were calculated. At the same time, the stock market cannot be predicted, and I would bet that every single wealthy person has lost a good amount of money in the stock market, but that doesn’t mean it’s a bad investment. It’s a learning experience.
You can play it safe with investing (think company 401k plans and diversified portfolios) and that WILL get you rich, but it won’t get your rich as quickly as learning about the market and taking risks will.
But what if I don’t have money to invest?
We ALL have money to invest. Think about this – when you get paid, where does your money go? It first goes to the government, then it goes to bills, then it goes to groceries and living expenses, and then if there’s any leftover, it goes to you. Right? Instead – try changing it up. First pay the government (unless you work for yourself and have write-offs, but I still highly recommend setting aside a percentage of your earnings for taxes), THEN pay yourself, then pay all of your bills and living expenses. If it’s tight, you’ll be forced to either cut back on your living expenses (here’s one way to save tons of money and time) OR make more money. Making money is not hard. There is SO MUCH money to be made, just go out and do it. You can freelance write, pet sit or babysit on the weekends, start a blog, get a part-time job, sell some of your unused household items, etc. Our neighbor (who I would guess is 12) came over last weekend and offered to wash our car for $10. While I knew I could do it myself for free, I admired his work ethic and gave him the go-ahead! To save money (which is similar to making money), try eating simpler foods (we eat a lot of peanut butter sandwiches, apples, bananas and potatoes around here), bring your lunch to work, use less gas by walking or just driving less, use coupons, etc.
How do I get started with investing?
Like I said, first you need to learn everything you can about investing. While it’s tempting to want to just purchase a few stocks and see what happens, unless you can actually afford to lose that money, it’s not worth it. I recommend first focusing on growing your nest egg so you have money to invest. Get out of debt, study the market and save money. Look for opportunities. Do you want to purchase a rental property? Perhaps you want to get good at predicting stocks and buying into start-up companies. For me, I want to do both. My husband has always wanted to have a few rental properties. He can do all the maintenance himself, so this is something we are definitely pursuing. Ideally, we will pay cash for our first investment property. The money we make on that will be used to purchase a second investment home, and so on and so forth. We’re also getting our feet wet in the stock market. Again, I don’t recommend doing this unless you can afford to lose this money.
I actually did a post on how to start investing. It’s definitely a more “play it safe” route, but if you’re just starting, it’s good to play it safe while you LEARN.
I feel like I’ve learned so much already in this short time of studying investing, but it’s crazy the amount I still don’t know. Every day I learn something new and I love it. Did you know that millionaires are constantly using their minds? Poor people tend to have a lazier attitude when it comes to money. It’s easier to spend it and not think about it than it is to save it, learn about it and invest it.
I read Rich Dad, Poor Dad over the weekend. I’ve mentioned this book a few times on the blog, but I really cannot recommend it enough. This book will change the way you think about being rich. One thing the author, Robert T. Kiyosaki, mentions is that poor people tend to say “I can’t afford that” whereas rich people say “How can I afford that?” Coming up with a way to afford something makes you think! Again, it’s WAY easier to just say you can’t afford something and move on than it is to come up with a solution to make it happen.
It doesn’t happen overnight, it takes work and it takes knowledge. BUT – if you’re willing to put in the time to learn, you can EASILY become rich.
Watch me as I do it 🙂