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Revealed: What Rich People Really Do to Become Rick

Paul Sloane is an author and professional speaker. Full Bio



Everyone would dream about winning the lottery and getting crazy rich overnight. But dreams are nothing than a puff of thoughts.

Most people would like to get rich and buy a great mansion, drive a nice car and just spend as much money on stuff they love. But how many know what getting rich really means and what it takes?

Being rich is not just about the dollar amount, it’s a lot more than that.

Being rich is a state of mind. In a sense, you could be rich but still poor, and vice versa.

You can define “rich” in different ways. There are a lot of people who simply consider it as having a lot of money. For them, rich is equivalent to a being a millionaire.

But rich can also be psychological richness. It is an achievement of being able to live without the worry of money. You don’t necessarily need to own a castle to be considered rich. Everyone can be rich as long as we are able to do what we desire freely and to have the fulfilment in life. The key of it is to live with or even less than what you have. To be “normal” even when you are financially capable to do a lot more.

You might have your own preference on which definition suits you better, but here are some ways on how to get rich. It may help you achieve either (or both) of them.

If you want to become really really rich, make the following bold moves.

It’s an ambitious goal to become a very rich person, and if you’re aiming for that, you need to be doing something big, and making some great changes in life.

1. Exploit your skill as a self-employed expert and invest in it.

You may find most sports-players or entertainers are millionaires, and that is because they have utilize their skills fully. If there’s something you’re good at, it is likely you can reap considerable rewards out of it. It is the same concept of being the top of a particular field. When you are the best at something, opportunities come to you.

To become an expert of something, it is crucial to never stop improving. Successful people invest time, energy, and money in improving themselves, and it might just be the most rewarding investment you can ever make.

2. Be an inventor and consider it as an opportunity to serve.

If you have the product insight on something that is much needed but haven’t existed yet, you could be the first to produce a trending product in the future. Having the patent of a popular invention could be the fast-lane ticket to prosper. Just look at the example of Snapchat.

It would definitely be challenging, but consider it to be a way of serving, to benefit those who actually need your invention. No business is successful without the support of the public. Rather than squeezing every single dollar out of your customers, show them you are actually working to make them better.

3. Start your own business and eventually sell it

More and more startup have seen success with great return in recent years. If you can find a new approach towards a specific corner of the market and build a business that addresses that need, then you have a potential of success in it.

It literally can be anything: a cleaning business, a food delivery service, or a blog. It will probably take years of very hard work to build up the enterprise. All entrepreneurs will have to endure great risk and stress. But if you can pull it off, the potential rewards are huge. This is how many of the seriously wealthy people did it.

4. Join a start-up and get stock.

Using the same potential consideration of start-up in the above points, owning stocks of one or more start-up companies could be a valuable investment if the company thrives and either floats or is sold to a larger enterprise.

Only a small minority of start-ups succeed in realizing large capital gains, so the odds are not good. However, you can use your judgement to see which business idea and which management team are likely to succeed. Early employees in Apple, Google and Microsoft became millionaires on this basis.

5. Develop property.

Buying, developing and selling property has always been a major way for people to accumulate capital.

Borrowing could be a key element in this method. Say you borrow $200,000 and put in $50,000 of your own to buy a property for $250,000. Then you develop the property and sell it for $400,000. The property has increased in value by 60% but your $50,000 has now grown fourfold to $200,000. You have to select the right properties in the right areas and develop them wisely.

You are at risk from booms and busts in the property market. However, in the long term this remains a proven way to accumulate wealth.

6. Build a portfolio of stocks and shares.

If you can make steady investments in stocks over a long period, choose wisely and reinvest the dividends then you can build a large store of wealth. Of course stocks can go either way and many small investors lose heart when their portfolio plunges.

But over the long-term, equities are as good an investment as property and much more liquid. Stock market crashes represent great buying opportunities for those with cash and strong nerves.

If you want to become wealthier and live a better life, start with these simple things.

If you’re aiming for a stable life with enough money to support a living, start with the everyday things you can do.

7. Get a steady job.

It is important to have a job that you actually like if you want to be fulfiled. Choose your job according to your interest. It won’t go far if you are working on something that is not suitable for you.

It is better for you to work your way from the bottom up. Earn the experience through different levels of work and when you feel like you have gained all that you can from it, consider moving on in other companies would widen your horizon on different business cultures. Putting more experiences in various positions would make you a more valuable asset for companies and making you a better option for higher rank duties.

The biggest problem in some people’s path of getting rich is that they always spend more than what they earn. Living below your means will be the easiest to get rich.

Start cutting the unnecessary spendings in your life. Other leisure consumptions there are actually a lot more ways to save your cash, like reducing the use of electricity, gas and water to lower the bills, or to can food for later consumption. Focus your life with only the necessities and in no time you will be saving a lot more than what you previously did.

9. Save it in your bank.

Utilize the function of banks. A very effective way of saving is to set up regular transferal towards your saving account. This forces you to spend less directly.

You can also try to increase the amount of saving by 1% in every interval you wish. It will be an insignificant change but as time passes, you will notice a big difference.

Give yourself a reason and motivation to save as well. It is always important to plan for the future and saving for retirement could be a great point to persuade yourself to stay away from excessive spending.

10. Make investment wisely

Investment is much more than pure luck. One investment mistake could tear away a large chunk of your assets. So make sure whenever you are making decisions on investments, whether on properties or stock, think twice. It will be better for you to consider opinions from professionals and experts.

To give you some ideas, legendary investor Warren Buffett suggested to put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund, so that if the market crash, you will still be fine by cashing the 10% rather than selling the stock with a bad price.

Get rich wisely, and you’ll live a fulfiling life.

There are a lot more important things in life than accumulating wealth. Who wants to end up rich, unloved, lonely and in poor health? However, if you can enjoy a balanced life and at the same time become rich, why not do so?

Taking combinations from the above suggestions may not guarantee you a prosperous future, but it will surely eliminate a lot of financial troubles in your life. With one step at a time, maybe you will also become the one you dreamed of.

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