Everybody wants to become rich. Have you ever pondered why this is so? To finally buy that big house, to finally get that new model year car, or to finally keep up with the Joneses I suppose? The answers and the reasoning behind why 99% of all people who want to be wealthy will amaze you. What is the secret to becoming rich you ask? If I knew it I would already be rich, they say in subliminal talks with people who don’t save. If I had to answer this question today or tomorrow, I will continue to say the secret to becoming rich is investing yesterday. If you didn’t invest yesterday, invest today and tomorrow to play the game.
The person with the highest annual income who doesn’t invest will never be rich. Why can’t the dude who works in Wall Street making a million dollars a year be rich? Because he makes a lot and spends more than a lot. The high earner only feels rich, when in reality is not even close to any riches. This is the secret within the secret that people will never openly discuss. They spend more than they earn, and that is no way for anyone to become rich.
The trick is to invest in assets that will produce for you on a consistent basis. Take the cash flow and invest in other assets unrelated to the first asset. Warren Buffett does this every year, he buys stocks that pay dividends, and then buys businesses that produce revenue. How do you think he gets richer every year? By continously investing, even though he is already RICH aka Billionaire. People there are no real secrets to becoming rich. It is simple yet effective process for anyone to follow. Invest to buy assets every chance you get.
I know you’ve heard all over the news the rich get richer. Why is that so? Investing and using time to get a competitive advantage. I will never catch the wealth status of Warren Buffett, nor will Donald Trump, neither JayZ. Because Warrant Buffett began investing since 1965 and his assets are compounding now at a level far beyond any new millionaire today. The asset he purchased in 1980 might have produced 5 thousand dollars a year, but that same asset today might be producing 25 thousand a year. This is all due to compounding. Granted this is a minor dollar figure example, but you get the gist of it.
What is the Secret to Becoming Rich?
Invest Yesterday aka Invest ASAP
Buy Assets that produce Income
Invest extra income in more unrelated assets
Repeat the Process until the heart desires or Until FI
Follow Buffets Advice
Let things Compound
Eventually Give Back and Be Free
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Rich Uncle EL
A good post and checklist! Some really good advise here.
http://TheDividendLife.com
Hey Thanks Dividend life. I'm sure you already do many of these tips. Good luck.
My recent post What is the Secret to Becoming Rich?
I definitely agree with you. I am a big fan of dividend paying stocks and indexes. I especially love compounding interest 🙂
While I would love to become rich overnight, I think the slow and steady pace will eventually get me to where I want to be. I even look back to the beginning of this year and I see that my overall net worth excluding home is up 25% this year so sometimes it sneaks up on you.
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Hey thanks for the comment, slow n steady shows people a good lesson we all need.
Yep, getting more wealth requires spending that wealth on appreciating assets. Fortunately there are many different ways to invest your income. In order to get sound results it is best to diversify your portfolio and have multiple streams of income. Thanks for this encouraging post!
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Yes but as long as you put money to work, it usually multiplies. Thanks for the comment
It's not so much a secret as a correct mindset. Great advice! Keep up the good work.
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YEs I agree with that as mindset is a big part of it. Having the opportunity and the determination to make it happen is just as valuable.
My recent post What is the Secret to Becoming Rich?
Pretty simple steps, but often difficult to implement. All about having the right mindset to accomplish. Save and invest early and often!
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Save early and often is a good mantra to live by. FI or bust I Say. Those who get it understand it, and those that don't will work forever.
My recent post What is the Secret to Becoming Rich?
All people know the secret! We need action 🙂
All are good points but I think time and compounding can really make the difference between accumulating wealth over time or not. Seems like everyone has the "I wish I started sooner" mentality eventually. It can be for buying real estate, stock or any other asset. People tend to reflect on time gone by and missed opportunities instead of today and investing right away. Thanks for sharing.
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Good tips! Like Jodi said…I think many people know the secret, they just fail to take action. While I've always been frugal and invested my earnings, I really should have ramped it up earlier.
The early bird gets the earnings. Should I copyright that saying, haha. Thanks for commenting and lets all take more action before 2017. Good luck in December.
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