‘How to get rich’ is one of the most searched terms online, and it is because of this innate desire that many get-rich-quick schemes have cropped up to rob people of their hard-earned money.
Fortunately, there are legitimate ways in which you can boost your chances of getting rich. The process may take some time, and you may not be able to become a billionaire; but then again, there’s no harm in putting a few well-known tips to action:
- When you invest, do so for the long term: No one, no matter how fit he or she is, can work until the day he or she dies. Living off of Social Security isn’t very wise either, so it is a must to plan early for your retirement. Chew on this: if you set aside $500 every month for over 35 years via a diversified stock portfolio, you’ll have more than $1 million to spend during and post your retirement! Make it a point to invest at least 10% of your income (gross) for your retirement.
- Complement long term investments with short term savings: In addition to keeping aside 10% of your gross income for retirement purposes, you must save some cash for emergencies and planned purchases. This will help you tide through rough times, such as if you ever lose a job or are facing any other monetary issue.
- Live below your means: Living on less than what you make can make you significantly richer. That’s because if you do so on a consistent basis, you also save more on a consistent basis. When you see your savings accumulating, you’ll be encouraged to save even more.
- Say no to high interest: Avoid credit card companies or lenders that charge high interest, and do away with any debt that is setting you back financially. Paying off high interest debts first will enable you to save more in less time.
- Consider workplace retirement accounts: Workplace retirement accounts help you save more on tax since contributions are deducted from the paycheck at the outset, thereby automating the investment process. If your company doesn’t have a retirement plan, consider creating your own Individual Retirement Arrangement (IRA).