Hello friends, In today, article we see how to get rich in a simple way. In this article, I am providing simple 4 steps that help you to get rich, whatever you doing. so let’s start
Four Steps of Rich:-How to Get Rich
Getting rich is the process, not the destination, so you have to decide, what amount of money you feel your state of mind as rich.
When you select the proper amount as I can say I am rich.
so you have to follow these four-step that gives you the proper knowledge of getting rich
before that you have to set the goal for the rich.
for me, I say ” I am rich when I have 4 crores in my Demat account”
so for that goal achievement, you have to follow this financial plan.
1) Income:-How to Get Rich
When you want to get rich without doing any extraordinary thing, then you have to be some type of income.
For Income purposes, you can do the job or any self-employed work like a web designer or any type of rental property passive income. (How to Get Rich)
so for this Rober Kiyosaki (rich dad poor dad author) says ” there are three types of Income A) Earned Income B) PortFolio Income C) Passive Income”
A) Earned Income:
so those are Earned Income they come from the Job or you can give some of your time to earn income. In this, most of the people do the job that in government as well as the private sector. so this type of income is called Earned Income.
B) PortFolio Income:
In this, you can trend anything, that you buy some price and sell them on some more price with profits.
for example, If you buy the one-tonne apple at a price of 10,00,000 rupees( not any actual price I write) and sell them for 12,00,000 rupees. (How to Get Rich)
so 2 lakh is the portfolio income. In this category include the self-employed person or small business people that live on the capital gain
C) Passive Income:
In this category, include those type of income, in that you can not spend you time to earn it. In this category, you can earn income while you invest some money in some type of income-generating asset like a house, Stock market dividend.
If you have this type of income then you also be become rich, but you have to be so many ways of passive income source.
for this Warren Buffett says, ” Don’t depend on a single income, make an investment for the second source.”
after this all type of income come second steps, they are as follow
2) Saving Money:-How to Get Rich
If you have a different type of income, then you have to save that money. If you are spending your own all money and also taking debt to spend, and thinking that next month, you can save money and spend less.
but actually this type of not work the saving principle. When you spend money, then you got the habit of spending, then no one saves you to go broke or poor. (How to Get Rich)
for this Warren Buffett says the quote, ” Spend money, whatever left after saving.”
so you have to first save the money, and stay away from the biggest sports in the world is “Shopping”
If you use a credit card on shopping then you definitely not in the savings category.
by using a credit card for paying bills, and you think, that much amount of money I save on that product, and you do the regular shopping and increase your credit score and saving score.
so I do not say to not use the credit card to pay bills, I say, you have to add the saving habit also and shop that thing that is required.
so for buying requirement things according to warren buffet says in the quote, ” If you buy those things that not need, then you have sold those things that need you most.”
so saving is a very powerful thing, very few people do it.
let’s talk about the third step
3) Invest Money:-How to Get Rich
Whatever money you save, you have to invest that much money in income-generating assets like stocks, or rental property.
If you only save the money and put it in the bank account then you lose all your saving money up to 50% in value.
so that’s why Rober Kiyosaki says, “Savers are losers and cash is trash”
so putting money in a bank account is a type of losing money, buy inflation compound. (How to Get Rich)
For this purpose to beat inflation and increase the value of money with time, then you have to invest your money.
so for investment, you can invest in stocks or in real estate or in gold or silver.
In my opinion, Invest in those instruments that give you the proper return or maximum return.
If somebody asks in which instrument is better to invest, I say to invest in business or piece of business i.e. stocks
If you want to know more about investment then read the following book summary on this website
so let’s see the last step of getting rich
4) Simple Living:-How to Get Rich
If you live the expensive, and you don’t have the proper different types of income source, then you in the coming year become poor or broke. (How to Get Rich)
Because, those are big celebrities, they spend lots of money on living expensive life and in some year after they come to the struggle life.
so the most important thing is to stay simple living. don’t show anything or don’t spend money on just looks rich.
for this warren buffet give the quote, when an interview talks about their very less expensive suit, then warren buffet says ” The Expensive suits, they are looks cheap on me.”
so understand this, if 100 billion dollar Man lives the simple, and only spend 4 to 8 dollar a day on eating.
so we have to be also live simple
If you follow this step, you one day become a very rich man.
I hope your steps help you. If you want to read some books on becoming rich
then you have to buy this book