How to become wealthy is a question that has a simple answer, if you decide to become one. I was reading a newsletter by Brian Tracy and he has done extensive research on this. What is it that stops people from becoming wealthy? He gave 5 reasons & I find them very apt for us in India as well. If you act on reasons why a person does not become wealthy, there are sure sot chances to reverse your situation.
Is it easy to become a millionaire?
Well If a person earning Rs 25,000 per year would just save Rs 2,500 per year (yearly or monthly), which is 10% of his income and invest it carefully to earning a return of 10% returns. And. He invests in his working lifetime, the years from age 21 to age 65 (44 years), it would grow to Rs 1,794,762 through the miracle of compound interest.
In a country like ours, with the opportunities that we have, startups culture we have, the value system (papa’s bank) we have, why is it that so few people retire financially independent?
How to become wealthy?
By identifying what is stopping us to be wealthy
Reason 1 – We Don’t Live with Wealthy People
The first reason that people don’t become wealthy is they don’t realize it’s possible for them. The average person has grown up in a family where he has never met or known anyone who was wealthy. One goes to school and socializes with people who are not wealthy. He works with people who are not wealthy. The reference group or a social circle outside of work are not wealthy. He has no role models.
It may never occur to you that it’s just as possible for you to become wealthy as for anyone else.
This is why people who grow up in homes where their parents are wealthy are much more likely to become wealthy as adults than people who grew up in homes where their parents are not.
Reason 2 – We never decide to be Wealthy
The second reason that people don’t become wealthy is that they never decide to. Even if a person reads a book, attends a lecture, or associates with people who are financially successful, nothing changes until he makes a decision to do something different. If he doesn’t decide to take the first step, he ends up staying as he is. If you continue to do what you’ve always done, you’ll continue to get what you’ve always got.
Brian Tracy says – “They never make a firm, unequivocal commitment or definite decision that they are going to become wealthy. All they mean to, and intend to. Someday they are going to. They wish and hope and pray that they will make a lot of money, but they never decide, I am going to do it”
Reason 3 – We procrastinate things which will help us becoming wealthy
The third reason that people don’t become wealthy is procrastination. People always have a good reason not to begin doing what they know they need to do to achieve financial independence. It is always the wrong month. It is always the wrong month, the wrong season, or the wrong year. Business conditions in their industry are no good, or they may be too good. The market isn’t right. They may have to take a risk or give up their security.
There always seems to be a reason to procrastinate. As a result, they keep putting it off, month by month, year by year, until it’s too late.
Reason 4 – We live by Instant Gratification (Aaj Aur Abhi)
The fourth reason that people retire poor is what economics call the inability to delay gratification. The great majority of people have an irresistible temptation to spend every single penny they make and whatever else they can borrow or buy on credit. If you cannot delay gratification, and discipline yourself to refrain from spending everything you make, you cannot become wealthy.
Reason 5 – We lack Time Perspective
The fifth reason that people retire poor is perhaps as important, if not more important, than all the others. It is lack of time perspective.
This was defined as the amount of time that you take into consideration when planning your day –to – day activities and when making important decisions in your life. Time perspective referred to how far you projected into the future when you decided what you were going to do or not do in the present.
An example of a long-time perspective is the common habit of upper-class families in England to register their children at Oxford or Cambridge as soon as the child is born, even though he or she will not be attending for eighteen or nineteen years.
On Quora, someone asked me “What is that one MF Scheme, which will give me Best Returns in Short Time”.
So, a question becomes weird when you lose the time element.
Chose to BECOME Financially Independent – or How to Become Wealthy Eventually
Financial Independence means building a financial fortress around yourself.
You want to make a high income, get out of debt, put money in the bank and have the ability to do the things you want without being preoccupied with the costs. The only question is, “are you going to do it or not?”
Goal 2020 – How to Become Wealthy
Start by setting financial accumulation and financial independence as a goal.
Then by setting a plan to get better and better at what you do.
On the other hand, saving & investing more and more of what you earn
You will become financially independent or a millionaire in the years ahead.
How to become wealthy is a question that has a simple answer, if you decide to become one
Let 2020, be the year – When you choose to become Wealthy!
Some More Reading for the “Prospective Wealthy Investors”
