How to Get Rich and Stay rich
Tags: Wealth Management, Money Mindset, Money Management, Wealth, Money

How to Get Rich and Stay rich

Controlling your time is the highest dividend money pays. Photo by Mulyadi

Getting rich and staying rich are two different things. Getting rich is relatively easy. But staying rich is hard. There is a thin line called financial literacy between the two.

Anyone can get rich. But staying rich requires some financial education.

People became an overnight success and gain millions. But lose everything in a couple of months. How many such stories we’ve heard of sportsmen, rappers, and lottery winners. They are not ready to handle such an amount of wealth yet.

You will handle the million dollars the same way you handle the 100 dollars. Therefore it is essential for anyone to have basic financial literacy.

1. Multiple streams of income

Show me a millionaire who has only one source of income.

Millionaires having multiple streams of revenue is no accident. They know the right strategy. Having only one source of income is like sleeping with a snake. You have to be awake all the time.

“Your first $1000 is your hard work. Your first $100K is smart work.”

Your first few hundred dollars come from specialization or focused hard work. But if you want to achieve financial freedom, you should diversify your income.

The good thing is that earning $100 million is easier than your first $100K.

2. Control your emotions

Emotions are powerful drivers of human potential. If you didn’t take control of them, they will take control of you.

Emotions can lead you to make terrible decisions — be it financial, professional, or personal.

Taking financial decisions using your emotional hunches is very dangerous. More than 80% of the millionaires have agreed that emotions led them to arrive at terrible financial decisions.

3. Embrace failure

When you set out on your path to richness, there will be failures along the way. But every failure will bring an equivalent lesson with it. You have to have the right mindset to embrace failure. And absorb the lesson.

But if you step back from the game at the mere sight of failure, you will definitely go broke.

Don’t play it small to avoid failure. Try bigger and fail bigger. Because one day you will be grateful for that.

Robert Kiyosaki on failure in his bestseller, ‘Rich Dad Poor Dad’:

“Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success.”

4. Learn daily

Warren Buffet is reading 500–1000 pages a day. He spends 80% of his time reading. And his net worth is $102 billion.

Reasonable right?

The more you learn, the more you earn. The key to financial success is mainly reading. It’s that simple. But the sad fact is no one is willing to read. A good number of adults don’t even finish a single book in a year.

Conversely, highly successful people read each day. They know that knowing what the poor people are neglecting is their biggest advantage.

5. Be persistent

Greater fortunes are made by being persistent. The long-term vision is crucial in finance.

Building assets column takes time. You got to be persistent.

2012: Venture capitalist Garry Tan writes a $300,000 seed-stage check to a new crypto exchange called Coinbase. 2021: Coinbase goes public via direct listing and Tan’s initial investment ($1.3M in total) is valued at $680M.

Warren Buffet persisted until he was 60. From there, his wealth grew exponentially.

7. Spend less than you earn

Broke people spend more as they earn more. But rich people save before they spend.

It is that mindset that separates rich from poor.

When you have money in your hand, it is easy to not resist the temptation of buying luxury. But it is actually delaying your financial freedom.

The point is not how much you earn but how much you save.

Major money wasters:

Subscriptions

Expensive clothes

Fast foods

8. Use your wealth to create more wealth

Saving is highly appreciated. But don’t let your savings lag.

Your money is your servant. Why not put him to work?

Poor saves money -> use that money to live -> runout of money Rich Invests money -> use assets cashflow to live -> money keeps coming

The best thing about putting your money to work is it will work 24*7 even when you are chilling.

So, how to put your money to work?