Different ways to get rich in your life

Ask the pundits, and they will rattle off so many different ways to get rich. But more or less, their basic principles will be same. Becoming rich is something which can be achieved through implementation of these rules.

You might have heard about the easiest way to become rich or how to get rich quickly but in reality, it is easier to read and talk about them rather than implement. Let us check the rules to see how easy or tough they are.

Ways to get rich

Rule 1 : You cannot blow away all that you earn

This must be pretty easy to understand but it’s still one of the most important and difficult ones out there to practice. If you keep spending away all your money that you earn, you will never be able to inculcate any saving habits.

This happens because people do not do any budgeting and so never know in the first place, how much they are spending. You need to first put a mechanism in place where you demarcate an amount beyond which a penny spent should be considered sacrilege.

Keep saving a minimum 25% of your take home – this isn’t going to get you rich for sure but will form the base of the pyramid which can take you to greater heights.

Rule 2 : Spend and save your windfall gains

In many industries, investors still get fat bonuses or Diwali gifts today.  The lure to spend it all is huge and one must want to buy everything out there. Money is always short, whatever you buy and whenever you buy.

But this is where the wise investor scores over his counter parts. You should probably make a rule that you will save a percentage of this windfall gain. It could be 50% saving and 50% spending. Though it might be very impractical in your scenario, you need to have a guideline to stick to. And then you can make it perfect over a period of years.

Save, save save – it is one of the most important ways to get rich.

Rule 3 : Never take a loan to buy a bad asset

Well, this is debatable though the rule sounds perfect. Would you take a loan to buy an asset that is going to go down in value and turn sour ? Obviously not. But as luck would have it, not many of us can afford to buy a car with 100% down-payment – a car is a depreciating asset and we do take loans for it.

So while there are some things in life you will end up buying on a loan, try to ensure that the asset is going to grow in value over a period of time. A house is a perfect example of that. Even if you take a home loan today, the asset continues to grow in value over years.

Rule 4 : Protect assets in life intelligently

Well this is a nice one. What this rule says is that one of the most important ways to get rich is to ensure that you do not dip out of your savings to pay for damages for something which someone else, say an insurance company could have paid for.

So all the things in your life need to be insured mandatorily – your car, home, health, life among others. If you do not have adequate insurance, then you will pay from your pocket and that will leave your richness a tad lighter !

So form an emergency fund so that you do not have to dip in your savings and be aware of how many insurance policies you should have for adequate protection.

Rule 5 – Invest in yourself

This is so true. If you want to become a money making machine, you need to feed and water yourself. That means your career. Your career is your biggest asset. So you need to keep up-skilling yourself.

Many folks I know do not do this at all as they have to spend money on trainings and corporate programmes. Many have been advised about honing up their communication skills and leadership abilities but they don’t want to spend a dime on these – well, if you cannot spend, you should not expect much in return either ! Spending on your core skills is one of the sureshot ways to get rich.

Rule 6 – Be happy with what you have

Most of us compare ourselves with others who are better off and imagine what it would be like to be in the other person’s shoes. Little do we know that there are other people looking at us and thinking the same thing !

You are where you are because of circumstances in life and you should be fortunate enough to  be earning and leading a good life. So be happy with what you have. The other good things in life which you think are out there will come to you eventually, it pays to have patience !

So, there we are – according to me, these are some of the best ways to get rich and I personally implement all of these but more often than not, I struggle with rule 3 and 6. Hopefully, I will improve. Making money is a constant learning exercise.