Of course, everyone wants to become rich. We all want to have the security of no longer having to worry about money. I do not think people wake up just to worry about money. But having financial security is a far different achievement than becoming rich. I would consider being becoming financially secure as having an income that is twice (2X) as much as your expenses. I would consider becoming financially comfortable as having an income five times (5X) as much as your expenses. I think MOST people would be happy living somewhere in the middle of this range. Somewhere between 2X-5x times their expenses. So if their monthly expenses were $5,000 a month, then having an income this is $10,000 to $50,000 a month would be where they would want to be. I would consider being financially rich as having income twenty times (20X) or more than your expenses as being rich. So if my expenses were $5,000 then I would need an income of $100,000 a month to consider myself rich. Wow, that sounds like a lot of income. However, it is extremely achievable.
By the numbers, only 3% of the population will ever become rich. Yet, keeping this in mind, only 5% of the population will have enough money during their retirement years. It looks like the same people who become rich are the only ones who have enough money during retirement. WOW. So it seems, by the numbers, that you need to become rich in order to live comfortably during retirement. YES. That is the truth. Most people do not even reach a financially secure level of wealth. Think about it. If you are spending $5,000 a month, you would need to have $10,000 a month coming in to become financially secure. Seems easy enough right? The simple fact of the matter is people adjust their lifestyle to match their retirement paycheck. If all said and done, someone received a retirement check for $4,000 a month (which is actually good) and then had a 401k payout of $2,000 a month (which is actually good), that would be $6,000 a month. Chances are (97% chance) that that person would adjust their lifestyle to match their check. They would downsize to a mobile home, only shop with coupons, and vacation every 3 years. That is the standard life for us in America. Now, what if that person had a paid off rental they bought 30 years ago? Sure it would have been a pain in the rear-end to keep all of those years, however, it would probably be generating $3,000 a month of income. So with just a little annoyance, this person could have increased their retirement income by 50%. That is huge.
To become rich takes hard work and knowledge. But it isn’t education from a college that will get you rich. Education from a college will get you an amazing job, there is no doubt about that. With hard work, saving, investing, and living frugally, you probably could achieve a level of financial security. Which is better than 95% of the population. However, to become rich you need to develop knowledge that is deeper than most people. The knowledge of money. In particular how to create money. Becoming rich takes people to do things that they really do not want to do. This includes sales, public speaking, learning new skills, writing, reading, and dealing with people. These skills are what keep 97% of the people from becoming rich. There is nothing difficult about becoming rich. The hardest part is overcoming your own difficulties in becoming rich. Trust me, no one is going to hold you back from becoming rich. A millionaire is not worried about someone making $200,000 – $300,000 a year. The only person holding us back is us.
I hear the questions already. But Josh there is no blueprint to becoming rich? Yet there is a blueprint. First, read all the financial and success books you can over a 3 month period. Ensure you have achieved the maximum amount of income from your current job. Increase your cash flow by paying down debt and lowering expenses. Rent out a room to increase cashflow. Buy a home or duplex. House hack while saving and investing in the stock market. Create business income such as a blog, YouTube, Facebook group, or small business. Keep doing this and you will start to see how to print your own money. For example, if you are a real estate agent you can create a course to help someone pass the real estate test. If you like to jog, you can create a sponsored running group. Money comes from everything and everywhere. But you have to train your eyes to see it. We are conditioned to only see money from a paycheck. It is up to us to learn how to create our own money, outside of the employment system. America functions through consumer spending. That is the majority of our gross domestic product. So, of course, they want you to work for money and buy a nice car. They want you to buy the new Nintendo and the latest Jordans. But why not become rich and THEN buy those things.
In the end, becoming rich depends on you and only you. I would love for my friends and family to become rich along with Kris and me. But, sadly that is not the case. Taking the time and effort to learn about money is something that most people will never do. The hardest part of becoming rich is dropping the mentality of a paycheck. “The rich do not work for money”. The rich operate by putting their money to work in investments. Whether that is in businesses, stock markets, real estate, or royalties, the rich are always getting a return on their investments. Instead of working all day for $200, they find an investment that will give them a $200 a day return. And then they pay fewer taxes on their $200. They also have more free time for their family as well. We should all strive to become financially secure, at the minimum. Chances are that you will have to own a couple of rental properties or have a small business on the side, but you will not have to downgrade your life in retirement.
The best part of learning about, and then, becoming rich is this: your future generations can reap all of these benefits. Not only will you be training your future generations to not work for money, but also your businesses, assets, real estate, and investments can be passed on to them as well. When you work for money, not much is passed down to future generations. There is no one to blame but ourselves. I am currently in the process of becoming rich, but if you want to get started, let me know. The best time is yesterday.
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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