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Tuesday, January 18, 2022

10 Steps to Become Rich in Life & How to Build Wealth

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Steps to Become Rich in Life – If only there were one single road we could take to become rich, we’d all be rolling happily in money. But unfortunately for us, the road to success is not as easy as we would like. It requires a brave heart, sacrifice, and resilience to endure everything that it comes with. Since we all have different definitions of what rich is and different goals. The journey to success is always unique to everybody. However, there are steps that those who’ve succeeded took that we can learn from. And so, in this article, we’ll be looking into the steps they followed to get rich.

10 Steps to Become Rich in Life & How to Build Wealth

1. Change your mindset on money

Robert Kiyosaki is the famous author of the book rich dad poor dad, which credits his rich dad’s riches to his mindset. He even dares to conclude that you can only get rich in your mind first before you become rich. He goes on to suggest that because his dad possessed a rich man’s mindset, he always sought opportunities to get money, unlike his poor dad, who only saw his poverty and how it restrained him from doing anything.

The right money mindset will have you set your goals in order, and you’ll be motivated to go after them. It won’t matter what it will take you to crush those goals because you will have the drive to push through. Woe unto you if you have a poor man’s mindset, as you will only be able to dig yourself deeper into poor financial decisions. It won’t matter how much money you make because it’s like the last wish from a genie bottle. It will all disappear without a trace.

Look at how stubborn the rich are about getting to their goals and targets; you should seek to emulate that. You’ll discover that you have what it takes to become rich. That simply means that you’ll find out the power that comes with being disciplined and having a changed mindset.

2. Build multiple streams of income

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Have you looked at Elon musk’s investment portfolio lately? I bet you Tesla isn’t the only company he’s invested in. He’s affiliated with SpaceX, Deepmind, Solar City, among others. This man is the richest in the world currently, and if you study his investment portfolio, he has his hands in as many honeypots as he can. This goes to show that true riches come from diversification and multiple income streams. That job that you solely depend on hasn’t tied you down. You should consider starting a side hustle in your free time. Or maybe get into real estate to earn extra money from rental payments. Utilize the little time to focus on a side hustle.

There are also saving accounts that allow you to earn interest. The smartest money move you can make today is multiplying your sources of income. A pro tip you could follow is pulling your side hustle towards a single idea. Like Elon Musk, who focuses his investments on technology. This means that you could be a part-time makeup artist, sell cosmetics, own a salon, and even teach people how to do their makeup. When you utilize this step, you’ll realize that being rich isn’t a far-fetched idea.

3. Add value

Whatever you feel the need to pursue, be it a business or career, it makes it more potent if it adds value. This trait is something common among rich folks. It helps them stay relevant despite the changing time, and that’s why they can amass so much wealth. And they do this by being valuable and impactful in the services, they sell to you. Can you imagine an instance where a top-notch brain surgeon walks into the best hospital looking for a job? For sure, he’ll be offered the job and a lot of money because he invested his time and finances to learn and master his skills. The point here is, the best foundation you can build for yourself is adding value to your life and others. Maybe then you can convince a multitude of people why your services come with a big paycheck.

4. Create a plan and follow it.

This should have probably been your step one to get rich because there’s no journey without a map. In this case, your map should be your plan. Inside should be the main goal that you are working towards the routes you’ll use to get to that destination. And when you are designing the route, it’s important to be flexible. Have at least one or two extra routes to get to the goal, So that you don’t find yourself giving up just because you reached a roadblock on your journey. Meticulously plan your finances and also have a savings plan and an emergency fund.

Be precise with detailing how much income you get per month and where exactly you spend that money. Know how much of it you have saved and how much debt you are paying. Create a budget and work within it as close as you possibly can. The chances of you becoming rich after taking this step almost triples.

5. Live below your means

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There’s a group of you who are watching this and believe it’s impossible to become rich from nothing. With no handouts or support from family or friends, you believe that you are doomed to poverty. But that’s not the case, if you could get a decent job, you already possess the key to riches. You simply have to start by living below your means. Save having to pay rent by living with your parents or sharing a house with a roommate. Deny yourself some of the pleasantries of life like designer clothes, dining out, or partying. By doing this, you are safeguarding your financial future. It’s a simple step, but many find it very difficult to adhere to.

But if you struggle here, use some of these tips that I often use to help you navigate through it. Write down a monthly budget to work with throughout the month. The tricky part is overspending on grocery shopping. That’s why you’d never catch me shopping without a list and a limit. I’m also a very savvy shopper who takes advantage of coupons and sales. These little everyday practices have allowed me to get ahead financially and moved me closer to success.

6. Invest your money

I know that living paycheck to paycheck discourages you from investing your money. But you have to find a way for you to create wealth. That includes venturing into some investments. And you don’t have to break the bank to get started. Instead, you start small and work your way up the investment ladder. For starters, you can research investing in the money market. This is a platform for the risk-averse who haven’t yet got a grip on their investments.

Then you can go into the stock market, and before you know it, you’ll be investing in real estate and buying company shares. Grab any opportunity you get to learn about what type of investments are best for you. Another good thing is to invest in things that you have some sort of idea about. This will give you the independence to make decisions about your investment. Another good thing about investment is that you can learn more about it as you go. So don’t be intimidated to start your investment journey today.

7. Find the right job for you

Not a single person has ever succeeded in doing that which they hated. So it’s not a bad idea to find something that you love and are good at then find a way to make money from it. It will leave you feeling much more fulfilled, even if it earns you the bare minimum. Some time back, it used to baffle me how some of my friends would wake up and just quit their jobs. Without a backup plan or any hardcore reason for their actions. Most of the time, their reasons were the office culture was toxic, or they felt dissatisfied in their roles. But I saw no wrong because, at the end of the day, they had the fattest paychecks at the end of the month.

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But slowly, I realized that the checks didn’t grow that fat by chance. They selected jobs that they loved, and we’re satisfied doing it for years later without feeling drained or tired. It gave them a sense of purpose, and that’s why they had climbed up the ladder. Unlike me, who accepted job offers depending on what amount of money I’ll be paid and nothing else. What I’m trying to say is don’t be like me, find the job that suits you and also don’t be afraid of leaving anytime.

8. Take a calculated risk.

In the quest of making money, there is always risk involved. Whether employment, starting up a business, or even investing your money in the stock market, there is some sort of risk involved. If you perceive things from this angle, you can better prepare yourself for whatever outcome. To make money, you have to take a chance on the idea you intend to execute.

However, taking calculated and reasonable risks will help preserve your money. Many have fallen victim to investing their life savings in very risky avenues without even stopping to think for a bit, and such trends have ended in tears. To become rich, you have to be critical in your thinking, looking at every possible outcome before you deep your toes into unfamiliar waters. Even better, seek advice from financial planners, who will help you understand the invincible loopholes and traps or even possible lucrative opportunities.

9. Exploit the possibility of self-employment

We’ve all heard the scary stories that entrepreneurs have to tell. Some even claim that this venture is worse than your worst heartbreak. And I remember clearly my last heartbreak. It hit me hard, and I’d hate to think that anyone has ever experienced anything worse. You could exploit self-employment by starting your own business. On the other hand, you can utilize skills or talents that you already possess, like cooking, athletics, or artistry. But this means that you’ll have to be exceptionally good at what you do because there are more than a dozen experts in each of these fields. Work hard every day at your craft, train hard, learn new ways and refine yourself often. This will set you apart from the rest, making you the one clients seek after often. You could write up a list of the people you’d like to emulate in your field. If it’s Usain Bolt, look at how he practices his lifestyle, and walk-in his steps to ensure you are just like him or better.

10. Tax yourself.

Everybody has a concept that helps them save cash. If you’re looking forward to becoming rich, then you probably should consider your money as tax money. Place your savings money in a different account, or even better, open up a locked savings account where you’ll be able to deposit at any given time but unable to withdraw that cash. If you have ever paid taxes before, once you settle the bill, your tax money is as good as gone, and you no longer consider it as yours, right? Try doing this with your savings account, only withdrawing money that you can return in full at once without delay. As we wind up, I’d like to remind you that despite these steps being very independent. Each of them is codependent on the other, and I suggest that you do not just pick one of these steps and work on it alone. Take the first step and slowly but steadily work through all these steps to ensure you attain true riches.

RELATED: 10 Top Tips: How To Get Rich From Nothing

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