How to Become Rich

There are many ways to become rich, but many more to become poor. Of course it's usually not easy

and many quick methods involve a lot of risk. so take your time and follow these steps to build your

wealth.

 

Note that people have different perceptions of what it means to be rich. In this article we will define rich

as having a fortune higher than $1 million.

 

Steps

Start by investing in your most important asset: Your mind

 

   1. Doing well in school and getting an education in a high-paying profession such as doctor, lawyer,

economist, etc. will give you a head-start and a safe economic position.
   2. Learn about basic economics such as Compound interest and investment strategies.
   3. Develop yourself all your life. Increase your professional skills, leadership skills, financial skills, social

skills and general life skills. Making yourself valuable will increase your chances regardless of your path to

riches.
   4. Develop a vision; why should you become wealthy? Based on this, set your goals. You wont rise up

unless you are able to build and focus your ambition.
   5. Stay healthy; It is very important to stay healthy in your endeavour to become rich. This will enable

you to work hard and also increase your life span increasing your earning period. On the other hand, you

will be able to reduce the cost on health care.

 

Invest

 

   1. Start investing as early as possible. Do not wait until you have "enough" money to invest. You will

end up with a larger account in the end if you start investing a small amount early and keep adding more

regularly.

   2. Make smart investments

If you don't understand what you are investing in, don't. Start with something easy like index funds.

 

They have fewer ups and downs than individual stocks, and you will not have all your eggs in one

basket.

 

   1. For safety: Stay as debt free as possible. A paid-for education and a paid-off house will enable you

to invest more money in the stock market or your own business. Only gear up low-risk investments with

loans.
   2. Starting now is better than never starting. The power of compound interest can make anyone

wealthy. Example: Investing only $10 every year at 15 % annual profit will give you over $1.3 million

after 70 years.

 

Start Your Own Business

 

   1. It is always better to be an employer than an employee, if you are disciplined and able to devote

time and money. Learn all you can about running a business. Take a class. Ask an experienced business

owner for advice. Be careful, though. Many businesses fail, especially in their first year. You could end

up with considerable debt, no savings, and no benefits. Get help!
   2. Entrepeneurs make up the majority of millionaires, it is high risk, but it is also the most likely way to

become truly wealthy. Few people amass great wealth through other means. Less than 1 % become a

millionaire through "other" means such as being a rockstar, winning the lottery, etc. So unless you inherit

wealth your best shot is doing this.
   3. Note that you can start your own business part-time. For example by going into real estate,

purchasing, renovating and selling homes is a common way for building wealth for people without money

to invest.

 

Be Smart

 

   1. Learn about budgeting, credit, and debt. Learn how credit cards work! If you get into debt early it

can sabotage your progress.
   2. Put an amount of money in the bank monthly. 10, 20, 30 dollars is good - $100 is better. By the

time you get old, retirement would be easy. (See segment about compound interest).
   3. If you are in college and can't afford an apartment and don't like those nasty dorms, then gather

with 3 or 4 people, and buy a good sized house while splitting the payment. It'd probably cost less than

a apartment. Better yet, buy yourself a home using a mortgage and pay yourself instead someone!

 

On the other hand, there haven't been covered any specific ways in this article. Please update.

Source: How to become rich someday