Life is simple. But it is us who make it complicated.
“Take a simple idea and take it seriously.”
Similarly, becoming rich is simple, but the majority of us complicate things. We fall for a number of get rich quick schemes by buying courses which sell you dreams of owning a huge beach-side property, a Lamborghini, and whatnot. They make you fall into the trap of materialistic pleasures, and the only thing you are doing is making them rich by buying “courses” which have content which you most likely can get for free. I agree that some courses are really good, but almost 95% of courses which are sold on the internet that sell you dreams of owning luxury items are most likely made to make the sellers rich, not you.
You might ask if this is not an option, then how does one get rich? My answer would be “to get rich slowly”. There are just two rules I want you to follow:
- Spend lesser than you earn
- Start saving as early as you can
Sounds simple enough? Yes, but it isn’t easy. If you have discipline and patience, it is very much likely that you will be able to follow these steps. Let’s get into details about how you can become rich by just following these two simple rules.
Most of the time, we as middle class people are going to spend a lot on buying things we just don’t need, or swiping that credit card – and getting into debt. If you start tracking your expenses, I’m sure you can cut back on a lot of those expenses. You really don’t need to chase the latest fashion trend, or buy the latest phone even when your current one is working perfectly. Don’t try to complicate life, as said by Jon Jandai in his TED talk, which is an eye opener.
What do you do with all these savings?
You invest it. In stock index funds, in paying off your own house, in getting rental income if you are interested in local real estate, or in other sources as you continue to learn about making money work for you (Remember passive income?). This is where it comes from.
How long can it last?
I’d say if you have saved up anywhere above 25 to 30 times your annual expenses, your money can last a lifetime. Don’t worry about the details – just do the saving for now, and watch as your lifestyle transforms and your worries about safety melt away. That means you have become financially free!
What’s the point of saving this much?
There are three main reasons which I consider. First, you don’t have to worry about getting stuck in a job you don’t like just for the sake of paying your bills. Second, you have got the freedom to pursue whatever you have always wanted to do, but weren’t able to because of your job. Finally, you can give time to friends and family which you always would have wanted to while you were on your job.
Closing thoughts, it’s a simple idea, but I highly doubt that many people would be following it. If you have got the patience and discipline, if you spend less than you make, have no personal debt, nobody can stop you from becoming rich and financially free in 15-20 years.
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