There are absolutely no exceptions, everybody dreams about getting rich someday or at least earning a lot of money.
Or maybe do you don’t care about living paycheck to paycheck?
Quitting your soul-sucking job, having financial freedom and time to travel to paradisiac places certainly is the dream of the majority of people I know. And there’s an obvious reason for this… you don’t want to spend your whole life working for a low salary and having a limited amount of time to enjoy your life only when you are 65+ years old, right?
But is it really possible to become rich and quickly? With no doubts, it is very difficult but is possible if you work very hard and follow the right path.
The fact is that everybody knows what is necessary to become rich and powerful, you only need to earn a lot of money and it is all done, right or not?
In this article, I’ll write about some of the best tips and ideas on how to become rich and successful – or at least increase your chances of becoming rich in a short period of time.
But first of all, keep in mind that although the money will bring you a lot of good things in your life, just being rich and powerful will not bring you unlimited happiness. In my opinion, the best thing that money can buy is time and location freedom and not having to worry about having to pay your bills.
Do you think that having a huge house and a luxurious life with a Ferrari in your garage will make you the happiest person in the galaxy? Sorry but you are wrong, becoming rich and successful will transform your life for better, but money is no everything.
Ok, so if you want to learn how to become rich quickly or at least as fast as possible, below are the most important rules, tips and ideas to become rich when you are still young maybe in your 20s:
1. Change your mindset, think like rich people
It’s said by everyone that the poor usually remain poor, while the rich are always getting more richer. But what separates the poor and rich people? Do rich people are born with special powers?
No, there are several elements that separate rich people and poor people. But do you want to know that is the factor number one that makes an individual become rich?
What is “mindset” and why it’s so important?
Mindset is made of a serious of habits, thoughts, and ideas you have about money:
- How do you deal with money?
- Do you like to spend or to save money?
- Do you think that rich people (millionaires and billionaires) are evil people?
- Why money is important to you?
- What would you do if you win the lottery?
- Do you avoid saving and investing money because you believe that life is too short to save money?
Answering these questions will give you an idea of what is the mindset about money.
But what is the ideal mindset to become rich one day?
If you believe that not saving and investing money is not necessary to become rich or you have the habit of spending every single cent you earn, then it’s time to start making some mindset shifts.
Here’s one real example of why developing a strong and correct mindset is important to become rich one day: have you noticed that the majority of people that win the lottery end up being poor again after a few years?
Why in the hell someone that earned millions of dollars ended poorly again? This happens because they don’t have the right mindset about money. With no offense, these people have the “poor” mindset and they are doomed to be always poor.
Usually, if you give one million dollars do a poor person that has a weak mindset, this type of individual will spend all the money on luxury cars and stuff. They tend to think that one million or even ten million dollars are an amount of money that will never end, but surely they don’t know how to manage this money.
A mindset, of course, is all about financial education.
And what happens if you give one million dollars with someone with a strong mindset about money? This person will spend all the money on luxury items?
Much probably not. Rich people are usually worried about multiplying their incomes. Making money work for themselves.
Ask this question to me:
What would you do if you earned $200,000 in the lottery or in any other way?
- Buy a luxury car like an expensive Ferrari or Lamborghini?
- Invest it into stocks, funds or any other investment with a good return?
You’ll be surprised how many people that already have debts and problems to pay their bills would choose option one. There is a significant percentage of people that are already in big debt that would buy a luxury car that requires a lot of money to pay for gas, insurance and all other sorts of expenses of a luxury car.
On the other side, if you are a smart person and you earned $200,000 you would invest this amount of money on solid and profitable investments that will give you a great return in the long term.
Try to imagine if you had $200,000 invested earning a monthly 0.7% interest rate. With this amount of money, you’ll be earning $1,400 per month just from investments. This is essentially an extra salary that you’ll be earning with small efforts.
Did you still prefer an expensive Ferrari to impress some girls or your friends?
This is called mindset; what you think about money and how you spend or invest your money is a part of the mindset. So having a strong mindset geared towards earning money is what will define if you’ll become rich one day or not.
2. Learn how to manage and save money
Learning how to manage and save money can be considered one element of the mindset.
Try to imagine one individual that has a high paying job with a $150,000 annual salary. Although this individual has a good wage, he (or she) has an expensive car to maintain, purchased a huge and luxury home with a loan that never ends to pay for this home and for the last, this individual loves to waste money on expensive restaurants and other useless activities and stuff.
And for this reason, this individual is always broke and complaining about the lack of money.
Now think for one second, what’s the problem with this individual?
Lack of income or overspending? With no doubts, this individual is spending much more than what he needed.
In this case, earning more money would resolve the lack of money? If this person doesn’t know how to manage his finances and save money, no matter how much money this person is making, this individual will never be able to save money.
It seems so obvious the importance of saving money if you dream about becoming rich young or one day in the future.
What I consider “irritating” is that some people have serious problems in saving money even if they are earning 5 figures per month and they are always looking for easy ways to become rich overnight…
3. Build knowledge and expertise
Do you dream about being rich and successful?
if the answer is yes, then you definitely need to build wisdom and knowledge. Building expertise is extremely essential in any area of our lives if we want to be successful.
Do you want to start a successful business that makes money? Then you need to have knowledge and expertise.
Do you want to be a great investor that makes great returns from your investments? Then again you need to build knowledge.
Warren Buffet didn’t become the richest investor of history without a huge collection of experience, wisdom, and knowledge.
And the same applies if you want to become rich fast, young, slowly or someday in your life when you get older.
The cold truth is that if you acquire knowledge, getting rich faster will become much easier. And in some cases, if you master some skills you can become rich quickly or even overnight – if you consider a few years a short time.
And how to acquire real knowledge to help you become rich and successful and with no money?
By reading great books about finance like “Rich Dad, Poor Dad” or “The Millionaire Next Door” and several great other books about finance. I’ll not make a list here recommending which books you should read, but if you make a simple search on Google, you can find tons of great books with financial tips to save money and become rich.
Also if you go on YouTube, you can find countless channels about saving money, investing, and becoming wealthy. The great thing about those YouTube channels is because you can get great tips and advices for free. There are also tons of blogs about finance giving great tips for free.
With the era of the Internet, you can learn a lot of great things for free, so there’s no excuse to not spend your time reading and getting knowledge.
And no, you don’t need to spend 4-5 hours every day reading a hundred of articles and books about finances.
Basically, to become rich there are a few elements that are necessary:
- Earn as much money as possible
- Save as much as you can
- Invest as much as you can
- Get the best possible return on your investments.
As you see there are “only four” essential elements necessary to become rich. Apply these four elements and one day you’ll get rich. There are infinite articles from blogs, videos from YouTube and books teaching you about these four elements.
Just invest 30 or 60 minutes per day reading about them and in a short period of time you’ll have all the knowledge is necessary to get rich even without a degree or barely with no money.
4. Build solid habits of millionaires
Did you read this article until this point? Congratulations!
Reading an entire article is one habit of rich people. LoL
Seriously, I hope this is not your case, but if you are lazy to read a simply (and long) article like this one, you’ll never get rich.
Remember the four elements that I wrote above?
You’ll only become successful if you apply them by building daily solid habits.
And what is considered a solid habit?
As a simple example, to get rich you need to save the maximum money possible to invest it. Let’s consider that you have a salary of $3,000/month and you decided to every single month save 30% of it.
You’ll need to make serious efforts and sacrifices to save this amount of money every single month. This is a solid habit. There are times where you’ll be attempted to spend your salary buying expensive and unnecessary stuff or maybe a new car (even if you don’t need it).
Making a temporary sacrifice to achieve your goals is a habit of a future millionaire.
A solid habit is a constant and repetition of beneficial action, exercise or idea that you do on your life to achieve your goals or dreams.
Exercising 3x a week for an entire year without failing is a solid habit. Investing 2 hours per week learning how to invest in stocks is a solid habit.
I can guarantee to you that to achieve magnitude and huge success in any area of your life requires solid habits.
And what are some solid habits of rich people or poor people that probably will become rich someday?
- Saving money, every month
- Leaving below their means
- Studying and learning new strategies to earn more money
- Working hard
- Having no fear to fail and try new things
- Etc, etc.
Here’s the point, no matter your level of knowledge or if you are graduated from Harvard, these things alone will not make you rich if you don’t apply them though solid habits.
5. Start a business
If you want to become a rich person, no matter your actual situation; if you are from a poor background, or without a degree, the best way to become rich relatively quickly is by starting your own business.
Yes, starting a business requires money, commitment, hard work and you still have chances of failing. However, you have no other option to become rich faster, unless of course that you win on the lottery.
As an adult, you should know that there’s absolutely no real possibility to become rich fast and easily with no efforts… For every person that is rich, famous and successful, there’s an untold story of hard work and sacrifices behind the scenes.
And starting a profitable business is one of the few “shortcuts” possible to get there. There are many types of business that you can start to accelerate your journey to wealthy, but below is the one that I consider the solution if you want to know how to get rich quick and from nothing:
6. Start a blog
If you want to know the “easiest” way about how to get rich, then here’s one way: creating a profitable blog. Creating a successful blog that will allow you to get rich fast from nothing, certainly is not so easy.
However, starting a blog to make money has some of the best benefits that you can imagine when you compare it from a traditional business:
- Very low cost to get started
- Don’t require advanced knowledge like many other businesses
- You can work from home
- Can be extremely profitable
- And many other amazing benefits that only bloggers will dream about.
Now, don’t get me wrong. Blogging is not a scheme that will allow you to become rich overnight. Like any other business that you can imagine, it will require that you work hard and invest some time to acquire some new skills that are not so much complicated.
I make over $5,000 per month blogging and if you want to earn money like me (or even more) you can check this step-by-step guide to start a profitable blog.
An interesting fact is that blogging is the only method that can you can become rich as a kid if you are under 16 because there are no restrictions and you can even use a free blogging platform if you have no money.
Blogging is certainly the best way to earn a lot of money if you are very young, a teenager or even a kid.
7. Start investing money in stocks or REITs
Saving money is super important in your journey to become rich, earning money is even more important. But if you want to become a rich person that makes money while you sleep (passive income), one of the best tips is to start investing money on stocks from solid companies.
And here’s one important advice, you’ll hardly become rich trading stocks, I mean, purchase stock from company A for $10 and trying to sell it one month later for $20.
Even the best investor of the story – Warren Buffet says that it’s impossible to predict the price of any stock in the market.
So, if you want to make a passive income from investing on stocks, I really recommend that you start investing in solid companies that have paying fat dividends from long periods, take a look on the “Dividends Kings” and “Dividends Aristocrats“, those are solid companies that have been paying great dividends for many years for their shareholders.
Please, have in mind that unless that you can predict the future, you’ll never become rich overnight investing in stocks. Although in rare cases, a few people are making huge amounts of money, the odds of happening the same for you are very unlike to happen.
Think that when investing in great stocks that pay consistent dividends or REITs, you are making a great extra income with virtually zero efforts.
8. Live frugally
Do you earn an average salary and have so many bills to pay that you can’t remember?
If the answer is positive, with no doubts, It’s time to start saving money and learn how to live a frugal life. Unless that you earn $200,000 per year it will be impossible to reach your dream of becoming rich and powerful if you are constantly in debt purchasing expensive stuff that after one week you forgot why you bought it.
And what is the real definition of living frugally?
No, living a frugal life it not living like a poor person. Living frugally is:
- Not buying very expensive and unnecessary stuff like the latest iPhone, if you can buy a cheaper but great phone;
- Wasting time purchasing expensive clothes, if you can buy comfortable ones for an affordable price;
- Delaying the purchase of your new car;
- Creating a budget and never spending more than what you earn;
- Purchasing a car or any other item that you can’t afford at this moment.
- Etc, etc.
9. Create multiple streams of income
If you depend exclusively of your soul-sucking job to pay your bills, then you should be a little worried… Having a unique source of income is not a good thing if you want to become rich one day and live peacefully.
Yes, I know that if you spend 40-50 hours per week on your job, it’s hard to find time looking for ideas to generate extra streams of income.
However, do you dream about living a life where you don’t need to worry about paying your bills?
So, it’s extremely important that you start looking for extra streams of income. No matter if it is investing in stocks that pay dividends, REITs (Real Estate Investment Trust), by blogging, or by an online business that can allow you to work from home.
Did you hear that sentence say to “Never put all your eggs on a single basket”, you must live on this rule even if you are not a big investor. And consider the fact that absolutely nothing on life is 100% secure, then diversifying your streams of income makes even more sense than you can imagine.
Getting rich is very difficult but totally possible if you have patience, persistence and invest your time in getting knowledge and expertise. Obviously that the chances of getting rich overnight or fast are tiny – this is not a reason to give up the dream of becoming wealthy.