It seems as if these days everybody wants to get a hold of riches, however working for those riches is another story. Regardless, the way to become financially free remains the same…to a certain degree. If you have no brilliant billionaire dollar idea and still desire riches then you should follow these five steps to get your hands on your fortune.
Although these five steps are probably nothing extraordinary, they shall build up your wealth over a period of time. The key like with many things in life is self discipline. You have to want it for yourself. A lot of people say they want to become rich, however they don’t want to do what it takes. So if your one of those people who just wishes for things to happen then you might want to stop reading now. However, if your one of those rare ones that can implement then the five steps below shall get you on your path to a life filled with riches.
The Five Steps
1. Make Money: The first and obvious step is to have some form of income. There are ultimately two main forms of income, one is the income that you have to work for and the other is called passive income. An example of passive income is usually the rewards you gain from your investment. For instance, the income generated by buying property and putting it up for rent would be referred to as passive income. Ideally, passive income is what you want to create. This step by step guide shall get you there. Step number four is all about creating passive income however when starting out passive income may not be available to you since it takes investments and if you don’t have money to begin with then you don’t have money for investments. Therefore, the first couple of times you go through this cycle should consist of you working hard and accumulating your money. Get some cash flow coming towards you. Get income coming IN.
2. Don’t spend all of your money: We all want material things in life, but you need to control your spending. You need to make rational decisions, not decisions based on emotion. A rule of thumb is to wait a good month, before making a massive purchase. For instance, if your contemplating about buying a new car, you need to spend some quality time really thinking if you truly need it. In your start up phase you shall aim to keep these luxuries low. The way I think about it is I rather have a Lamborghini later than a crappy ass car now.
3. Save some money: This is really the first step in creating sources of passive income for yourself. Before you can invest you need to save up. I’ve said in previous articles that you should save AT LEAST 10% from every cheque you earn. After your saving begin to accumulate you need to do what every financial book out there tells you to do and that is to…
4. Invest that money: I’d rather have my money work hard for me than the other way around. Most people don’t understand this and they spend their entire life slaving away for money, while the rich work hard and make money and have that money work hard for them. You need to make educated decisions on your investments and get some passive income flowing. This is the key to building wealth. Investments will get you rich. You can create unlimited sources of income. This is truly how the wealthy operate. Whether your running a country, or your running yourself, investments are detrimental when striving for prosperity.
5. Repeat: Your not going to hit it big after going through this cycle once. It takes awhile. However, if you stick to it and keep repeating, your sources of passive income will continue to grow and grow and if you learn how to become an intelligent investor along the way then the lock to your financial dreams shall be opened.