Everyone wants more money. Whether you’re a broke college student or a successful entrepreneur, money is the motivator for most things in life. For most of us, watching the number in your savings account grow takes a lot of hard work and time, and while there’s no formula for how to get rich, there are a few common “rules” for growing wealth over time.
You Need to Work for It– If you want to grow wealth, you have to earn it for yourself. Your success is up to you, and no one else is going to earn it for you. If you’re in college, get a part-time job! If you’re already working full time, but just aren’t satisfied with where you are financially, find a side hustle to earn some extra income! There are countless ways to earn more money. You just need to find what works for you, and get to work!
Saving– This is the second rule to getting rich, and one of the most crucial. Earning money is great, but it doesn’t mean anything if you’re not saving it. Sticking to a budget is one of the hardest things to do, but if you want to grow wealth, it’s not an option. Create a budget and break down how much money goes toward the necessities (rent, utilities, car payment, etc.), and get strict when it comes to discretionary spending. Think about it – all the money you’re spending on eating out or unused subscriptions could be getting you one step closer to your financial goals.
Put Your Money to Work– Earning money is the hard part. Once you have it, put it to work! Use compound interest to your advantage. Savings accounts earn interest, but not as quickly as investing does. Investing is a great way to start growing what money you’ve earned. It takes a little work to figure out what investment strategies will work for you, but once you have, sit back and watch your money grow!
Optimize Your Spending– Truly wealthy people shop smarter, not harder. It pays to shop around to find the best deals! It’s tempting to pick up an item at the first place you see it, but get in the habit of doing your research and checking a few stores to see where the best price is before purchasing. Waiting to find a better price, use a coupon, or delay buying until a sale starts can save a lot over the long run.
Always Consider Taxes– No matter your income level, a golden rule to getting rich is to minimize your tax liability. You can earn all the money you want, but if you’re not smart about your taxes, all the hard work you’ve put in can taken away instantly. Taxes should be near the top of your mind when making any money decision if you don’t want to sacrifice your money to the government.
Significance of Insurance– Protect your wealth and your family by insuring yourself. It goes beyond having life insurance – you also need to make sure you have health insurance and disability insurance. You never know what can happen, and unexpected health issues can put a big dent in your wealth. Give yourself and your family peace of mind, and get covered with life insurance, health insurance, and Short Term and Long Term Disability at a minimum.
Surround Yourself With People Who Lift You Up– Don’t let the people around you hold you back. Make sure your friends and family make you a better person, not bring you down. Network with and learn from people in the industry you want to be in. Find a mentor who can help you get to where you want to be, whether it’s by working with you or just watching and learning from them.
Take Your Time– Getting rich and building wealth doesn’t happen overnight. Don’t hurry, it’s okay to go slow. Take every small achievement as a step closer to getting where you want to be, and use it as motivation to keep working.