If You Want To Be Rich In Life, Then You Must Do These 5 Things
Let me begin by stating very clearly that riches do not follow a single principle as there are a thousand and one ways to becoming rich. What works for you may not work for others and vice versa. Yet, this is not to say that the rich, those who deliberately accumulated wealth overtime, do not have certain habits in common. In this article, I share with you things that you must do if you care about becoming rich in life.
1. Quit Your 9-5 Job
If being comfortable and living an average life is all you care about, then there is nothing wrong with having a 9-5 job. It will probably provide you with a pension and retirement plan, that is, if you are lucky enough to work in one of the best companies in the world.
However, if your goal is to truly become rich, you will have to excuse yourself from a 9-5 job. This will give you the opportunity to control your time, build your own business, so that you can stand a chance of getting rich. But only quit your job when you’ve got a concrete plan all figured out.
2. Leverage On the Power Of Compound Interest
If you want to be rich, then you must learn the power of compound interest, which Albert Einstein remarkably described as the 8th wonder of the world. You must learn how to reinvest and make extra money with both the principal and profit from your initial investment. If you do not know how to earn compound interest, you have only one choice left ─ to pay it.
Wealthygorrilla.com3. Understand Inflation and How To Beat It
Inflation is the continuous fall in the purchasing power of money due to the rise in the price of goods and services over a period of time. It does not matter whether you are a pope or an infidel, inflation will eat into your wealth. Therefore, you must find a way of investing your money to beat inflation such that the returns from your investment will be greater than the value lost to inflation. Bitcoin is your guest in this regard.
4. Increase Your Assets And Reduce Your Liabilities
As Robert Kiyosaki brilliantly puts in his book Rich Dad Poor Dad, assets are those items which, when acquired, put money more in your pocket while liabilities are those items which, when acquired, take more money from your pocket. A piece of land, for instance, is an asset while a luxurious car or home is a liability. If you want to be rich, you will have to acquire more assets and the few inevitable liabilities.
5. Don’t Spend More Money Than You Earn
This looks pretty easy, too easy to do, but it is not in reality. There are several people out there who live above their income, using loans to even acquire more and more liabilities. They spend most part of their active working life servicing loans from decades of fake luxury and expenditures. It is true that the rich spends money on expensive vacations and other luxury goods but those things are just a fraction of their income. To become rich, live below your income not above it.
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