How do I become rich?

If you’re anything like the vast majority of Americans who’re living paycheck to paycheck, this is one of your most pressing quests. It’s easy to see why.

Being rich means financial freedom. Who wouldn’t love to buy stuff without checking the price tag? Who wouldn’t want to travel the world without worrying about the money running out?

However, getting rich is easier said than done. Looking at a rich person, you might be wondering how they got their money.

Well, wonder no more!

In this article, we’re revealing the secrets of the rich. Keep reading and you’ll have a good idea of what it takes to become rich.

The Rich Start Investing Early

What were you doing when you were 11?

Probably too busy doing pre-teen things, like making friends, playing video games, and some school work.

There’s nothing wrong with that, of course. However, you’d be intrigued to know that there are kids who were already investing as early as 11.

Not sold? Look at Warren Buffett, who is one of the richest men of our time. At age 11 he was already investing in stocks.

It really isn’t a secret that starting to invest at an early age gives you a big head start, but not many people do it. It’s never too early or too late to start investing. As long as you’ve identified a good opportunity and you have the money to make the investment, don’t shy away.

If you’re in your early 20s, now is the best time to start thinking of investments. Don’t spend all your money on secondary expenses such as entertainment. 

The Rich Save for a Stormy Day

It’s no longer just enough to save for a rainy day. You need to save for a stormy day.

You don’t have to look beyond 2020 and the coronavirus pandemic to see the importance of having a healthy savings account.

Unfortunately, even though people know that they need save, the vast majority don’t. It’s telling that faced with a $1000 emergency, about 60 percent of Americans would struggle to raise the money.

Don’t be like these people. This is not how the rich do their thing.

Truly rich people are habitual savers. They know that not every bit of their income should go into household expenditure, lavish lifestyle, and investments.

You see, even if you’ve got the money to pay for emergencies without needing to save, it’s still important to have a dedicated savings account. You never know when the well will run dry, in which case you’ll need to tap into your savings.

Plus, saving money enables you to develop a habit of saving. This way, when you’ll have kids (or if you already do), you’ll be in a better position to teach them how to save. If you look keenly, you’ll notice that kids of the rich aren’t just about spending their money. They’re also keen savers.

The Rich Don’t Go on a Spending Spree After a Cash Windfall

What would you do if you received $100,000 unexpectedly?

Like most people, you’ll probably want to buy a new car, upgrade your furniture and appliances, take the vacation of your dreams… generally you’ll start spending the money immediately.

And who can blame you? It’s such a mindset that effectively ensures only a few people will get rich in their lifetime.

After getting a cash windfall, be it from an inheritance, gift, company bonus, or even stimulus checks, people with a rich person’s mindset don’t go on a spending spree. They take some time out to figure out how to best put the windfall to use.

As such, if you’re expecting a windfall in the near future, don’t get too excited, like this business owner who bought a luxury car after receiving coronavirus relief money.

The Rich Have a Succession Plan

You want to create wealth and pass it on to your next of kin or dependents. Do you know how to do this?

If you don’t have even a basic succession plan such as a will, it’s safe to say you don’t have a rich person’s mindset. The rich don’t just work to make a good life for themselves. They’re also want to pass on their wealth to their children and hope the succession continues to their grandchildren.

You don’t have to be super-rich to have a wealth succession plan. A simple legal document like a will that fleshes out how you’d like your assets to be distributed after you pass on is enough.

Another key aspect of planning for your dependents is to buy life insurance. The rich do this. There are different types of life insurance, but cash value life insurance is the most suitable since it pays a tax-deferred interest to the policyholder.

The Rich Avoid Debt

Debt, debt, debt.

Isn’t this the one thing that’s ailing most people in the U.S? The average American has about $90,000 in debt.

Debt can derail your quest to get rich and achieve financial freedom. You’ll spend most of your lifetime servicing your loans.

Although some debt, such as student loans, can be unavoidable, try to stay away from loans and lines of credit that you don’t need.

Thinking of applying for a second credit card just because you qualify? Don’t. You’ll only be walking into a debt trap. The rich don’t get into debt unless it’s necessary, just when looking to mortgage a house or take out a business loan.

Make Use of These Secrets of the Rich

Truth be told, getting rich isn’t easy; otherwise, most of us would be rich. That being said, wealth isn’t a preserve of a select few. You too can get rich.

With these secrets of the rich, you now have some of the information you need to start taking real steps towards wealth. Put it to use.

May good tidings come your way and keep reading our blog for more secrets!

Jane