We'd all be doing it if there was a simple and straightforward approach to unlock the
secret of how to become wealthy.
And although there is no single approach or way to get rich quickly, there are tried-and-true
methods for becoming wealthy, which require time.
Let's get started on the things you can take right now to boost your income.
Before you proceed to step 1, prepare yourself by realizing that your perceptions of money
may be incorrect.
Alot of us somehow manage to imbue money with weird ideas and cognitive processes that make
it appear to be something it isn't.
So, what is the truth?
How do you make money fast?
What are these proven ways anyone can make money and get wealthy?
Let's start with step number 1.
1: Start your own company and sell it later.
This is the most efficient and tried method of becoming wealthy.
If you can develop a new method, to meet consumer demand and turn it into a lucrative business,
you've generated real value.
It may be a cleaning service, a hair salon, a consulting firm, or an investment bank.
Building up the business will most likely take years of hard labour.
Because the majority of new enterprises fail, the stakes are enormous.
You'll need all of an entrepreneur's abilities, vitality, perseverance, and diligence.
However, if you succeed, the potential rewards are enormous.
Many of the world's wealthiest people did it this way.
2: Pay Off Debt It's expensive to be in debt, and once you
make it a habit, it becomes hard to break.
It also has an impact on your overall financial situation.
Your net worth is only $300,000 if your assets are worth $1 million and your debt is worth
$700,000.
So, let's look at the implications of debt on your money.
We are starting off with one of the most common forms of debt, a mortgage: If you want to
buy a house for $330,000 and put down $30,000, you'll need a loan of $300,000.
The total interest paid would be $203,233.94 if the interest rate were 3.8% per year (which
is considered modest) and the duration period was 30 years.
If you increase the interest rate by a percentage, you'll be looking at tens of thousands of
dollars more.
If you have a mortgage, raise your payment to make it easier to pay it off.
Not only does it feel good to own an asset outright, but it also saves you money on interest.
Another common form of debt is car loans: This is a swift debt trap that might drain
you of your financial resources.
I mention this because it's so easy to go from a $30,000 automobile to a $60,000 car
if the bank approves your application.
But here's the thing: at a 4.35% interest rate, you'll pay $3,434.80 in total interest
over the course of five years, versus $6,869.60.
Consider what roughly $3,500 may accomplish for you in a smart investment or for your
retirement.
Get rid of your student loans as soon as possible.
Don't hold out hope that they'll be pardoned afterwards.
You must make progress as soon as possible, or you will be paying off your student loans
when your children attend college.
Throwing money at it is the easiest method to come up with a number.
Although an extra $50 per month may not seem like much, small increases like these add
up over time.
Credit Cards: When used properly, credit cards are fantastic.
The general rule is to never spend more than 30% of your credit limit, and to pay off your
bill in full every month.
If you don't, most credit cards will charge you exorbitant interest.
Consider a 0% credit card if you have a large balance and want to pay it off before the
interest-free term ends.
3: Invest Your Money - The Smart Way You'll stay away from the weird fliers in
the mail that promise great returns on small investments in some unknown firm or plan.
Instead, you'll learn about index funds, mutual funds, exchange-traded funds, and all the
different sorts of investments available so you can figure out which one is right for
you.
Allow us to introduce The Ladder of Personal Finance to you if you're new to investing.
Each new step on the climb represents a new level, and while they become tougher as you
progress, they aren't insurmountable.
Have a look at some of the following steps: The 401K step: If your workplace offers matched
contributions, take advantage of them if you have the opportunity.
If you put effort to invest, your 401(k) can lead to a prosperous future.
The Debt step: As we’ve already pointed out, check out our ways for paying off debt
rapidly if you still have it.
The Roth IRA step: You'll want to contribute as much as possible, much like your 401(k).
Your contribution limit changes from time to time.
You can currently make an annual contribution of up to $6000.
Step four: Max out your 401(k) Saving for retirement is cost-effective, thanks to tax-advantaged
programs like the 401(k).
Make sure you take advantage of these before investing elsewhere.
Once you have exhausted all those other investments, you can consider investing in mutual funds
and other long-term choices with the extra money you've earned.
4: Automate Your Finances For good reasons, we're big on automation.
Why on earth would you spend part of your family time or downtime to pay bills and conduct
financial admin if you work a conventional 9-to-5 job and want to enjoy some quality
family time or downtime?
Your time is valuable, and technology improvements allow you to retain more of it.
For bill payments, savings, and investments, you can set up automatic transfers.
After your auto-payments have been deducted, you are free to spend the remainder of your
money on whatever you wish.
Even products that you may have previously thought of as splurge purchases.
This is referred to as a Conscious Spending Plan, and it will give you more financial
flexibility than a budget ever could.
First and foremost, pay yourself.
This means that before you go to that local seasonal sale, you should save and invest.
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5: Negotiating Your Wage Can Help You Earn More Money.
Increasing your income has the potential to have a cascading effect on all of your future
earnings.
Higher money means more contributions to retirement plans and more money for investments and savings.
If this sounds too good to be true, and the notion of approaching your boss for a raise
makes your palms sweat, there’s a load of resources on the internet that will help with
exactly this.
The simple joys of the internet!
Consider this: a $5,000 wage rise, invested and compounded over a 40-year period can be
worth more than $1 million!
6.
Negotiate Your Bills To Save Money.
You already have the power to negotiate your rates if you have a long-standing connection
with a provider, whether it's your local gym or a national bank.
Other factors that may work in your favour include competitors offering you a better
bargain, a stellar credit score, or the fact that your supplier makes a lot of money from
the products you use.
A top tip, have the mindset that you were bred to be able to negotiate.
Give credit to your ancestors' skills or whoever you want to, but believe that you are a master
negotiator.
It's as simple as clearing your throat, picking up the phone, and earning that additional
money.
7: Build Multiple Income Streams
The wealthy always have multiple sources of income, which you should be aware of.
They rarely rely on a wage alone, whether it's through passive income streams such as
investments, dividends or rental income, or real estate returns.
Additional sources of income could include; Blogging or photography as a side business,
profits from stock market investing, starting a small business and working for yourself
is a great way to get your foot in the door.
8.
Start Early Whatever path to riches you choose, the sooner
you begin, the sooner you will arrive.
You'll also have more time to accumulate and enjoy your money.
Don't put it off any longer; get started right away.
Saving $1 at 20 years old will be worth $5.84 when you hit 65, assuming a 4% annual return.
At the age of 65, if you wait until you're 55, you'll only be paying $1.48.
In other words, if you save just $4,500 per year for 45 years, you'll have more than $1
million by the time you hit 65.
9.
Real Estate Purchasing And Selling Real estate offers numerous opportunities
for profit.
You can purchase, renovate, and resell properties.
You can purchase land on which to construct new homes, apartments, or commercial structures.
You can also rent out multi-unit houses that you have purchased.
You may have to borrow money to purchase the property in the first place, so make sure
you can pay off your loans while still making a profit.
10.
Inherit Wealth.
If all else fails, being born to successful or wealthy parents helps, but if that isn't
an option, you could marry up.
That always seems to work in the movies!
So, let's say you’re doing all this, but now, there have to be things you need to avoid,
no?
So let's see some of those common money-attitude pitfalls you should avoid.
The hustle trap: If I work harder, I'll make more money, right?
Wrong.
You might be able to squeeze in an extra hour of overtime or take on more shifts, but at
what cost?
It is also important to consider your way of life when living a rich existence.
You should set up your revenue sources so that you can generate money in a shorter amount
of time.
Adding a passive income source is a terrific method to do this, but keep in mind that passive
income still necessitates some upfront effort.
However, it is far more successful than sometimes picking up an hour or two of overtime.
I'll have more money if I spend less: Technically, that is probably correct, but it also results
in a pretty boring life.
While there is some benefit in decreasing costs, it is what you cut that counts.
Cutting back on your monthly Netflix subscription may seem like a good idea, but not if it's
your only source of amusement.
Spending less on items you enjoy, such as that $3 Starbucks coffee, will not make you
wealthy.
It may help you save money in the short term, but what about your quality of life?
What if you were just a little more aware of the things you don't love and cut back
on them instead?
Finding a smaller apartment at a lower cost because you spend too much time cleaning and
too much money on heating is an example.
Frugality has its advantages, such as teaching you to appreciate your resources, but it may
also drain the life out of you.
The idea is to spend less time pondering $3 questions and more time asking the $30,000
ones.
There isn't enough money: If you grew up in a family where money was scarce, you may attribute
this trait to money as well.
But here's the thing: rich people understand that money is as plentiful as the sands on
the beach.
Adopting an abundance attitude can assist you in realizing that there is enough money
in the world to go around, including for you.
Last but not least: Making money is not a privilege reserved for a select few.
Anyone with the courage to do it is welcome to do so.
You only have one ace in your sleeve, and it's the choices you make today.
Rather than waiting for the proverbial ship to arrive, or risking your entire life on
fake winnings, you may make small but major changes to your finances that will have a
significant impact on your future financial situation.
You should know that you have the right to a secure financial future.
Everyone would try to get rich if it were simple.
It takes a lot of effort and sacrifice to get there, but once you do, you'll almost
certainly agree that it was well worth it.
So thank you all so much for watching.
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that YouTube algorithm.
Thanks, and see you in the next one!
Take care guys.