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Get Rich – Here is How

Posted January 21st, 2013 by bbsadmin & filed under Education, General Business.

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Here are seven suggestions for moving you along the path of wealth.

1. Knowledge

richJohn D. Rockefeller once said, “If your only goal is to become rich, you’ll never achieve it” (Rockefeller). If you ask most anyone if they want to be rich, they would probably say “yes.” However, if you asked, “what does it mean to be rich?”, most people would probably struggle. Some of the answers they might come up with may include making above such and such an amount, being able to afford this or that, or they might say something about some rich person they admire. If you want to become rich, you should answer the “what” and the “why.” The “why” answers the reason for the desired wealth and the “what” specifies the goal to achieve that reason. Without a goal or a reason you may never completely be satisfied. After understanding what you are going for, you should follow the habits and philosophies of those who have been successful at becoming wealthy. There are specific habits and philosophies which have enabled successful people to generate and retain wealth, while others never reach their goals, or lose what they have.

2. Invest in education

Before you skip over this point, because you may already have a college degree, consider the following. Don’t excuse yourself from investing in education just because you have done so in the past. Remember that knowledge is a base of decision making and understanding of the world changes constantly. Many professional have to do continuing education classes as a requirement to keep their licenses. When you put your mind and money to work getting an education remember not to get into the fallacy of association equals causation. This is the idea that your association with an institution is enough to cause you to be successful. Focus on substance. Recently Mandi Woodruff of business Insider wrote, “Average people think the road to riches is paved with formal education. Rich people believe in acquiring specific knowledge” (Woodruff). Jim Rohn, a well known entrepreneur and motivational speaker, put it this way, “Formal education will make you a living; self-education will make you a fortune” (Rohn).

3. Action minded

If you look at people who become rich, they are typically not passive. They usually don’t just hope for a lucky break from becoming the winner of a sweepstake. Often people who become rich are the people who do those things that others are unwilling to invest the time, energy and mental effort to do. For example, look at Bill Gates. He was willing to take risks and put forth the effort to make the personal computer software. Most people don’t take the time to know how to put together personal computer software. Even years after the launch of Microsoft there are still many who don’t know how, or don’t have the time to program and match the quality of products Microsoft can put out. Rich people choose to become rich because they choose those things which will lead to it. If you want to be wealthy, you must choose to go out and do something.

4. Live in your means

Most people would agree that Warren Buffett is a good example of someone who knows a thing or two about money. One of the lessons we can learn from Warren Buffett that stands out is his careful spending. Buffett has lived in the same place for the last 55+ years (Business insider). If you want to get rich, you want to be the best side of compound interest. This makes sense. Most people would agree that earning a percentage return is better than paying out a percentage of interest. Plan, budget and sacrifice in order to be stay out of debt. Don’t get into the mindset of trying to keep up with the neighbors. You cannot justify living out of your means because your neighbors seem to have the things you don’t. It is not very logical to assume this, especially considering the fact that you don’t know their budget and finances in the first place.

5. Become an entrepreneur

Entrepreneurs have great potential to become rich. They find things that add value to the market and the market pays them according to how well the needs are satisfied. Entrepreneurs are also compensated for the risks they take. In the words of Peter Drucker, a well known management consultant, “The entrepreneur always searches for change, responds to it, and exploits it as an opportunity” (Drucker). Entrepreneurs become wealthy because they are able to have control of their salary and the direction of the company they work for. Steve Jobs is a perfect example of this. He consistently made things which people valued. He created a very large and well known company because of this. The act of entrepreneurship (going out and starting a business from scratch) is not for everyone, however , most anyone can learn to take the words of Peter Drucker to heart and have the mind of an entrepreneur.

6. Earnings

Obviously, you can’t expect to get rich by stuffing money in a mattress. Money must be put to work. You earn interest on the money you put into the bank because the bank puts it to work in the form of loans and you receive a small amount of interest for banking with them. Rich people don’t just hoard all their money, they put much of it to work to gain returns in some form or fashion.

There is a saying that goes like this, “it’s not what you know but who you know.” In reality it is a little bit of both. If you want to get in front of the right people, you probably will have to know something of value to them. Learn about what successful people do and where they go and decide be around such people. In order to make the investment, you must put something to work. In this case you are putting yourself to work for others. You are adding value to their lives. You are establishing relationships which can open the doors to opportunity and learning from them first hand. You must also consider the fact that you become like and gain habits from those you associate yourself with. If you want to become wealthy you must learn to network, add value to the lives of others, and find and gain habits other successful people have.

Works Cited

Business insider. 10 Money Lessons Warren Buffett Can Teach Us. 2 August 2012. http://www.businessinsider.com/10-financial-lessons-we-can-learn-from-warren-buffett-infographic-2012-8. 19 January 2013.

Drucker, Peter. Brainy Quotes. n.d. http://www.brainyquote.com/quotes/keywords/entrepreneur.html. 19 January 2013.

Rockefeller, John D. How the Rich Got Rich. 20 July 2012. http://www.inc.com/jeff-haden/how-the-rich-got-rich.html. 19 January 2013.

Rohn, Jim. Brainy Quotes. n.d. http://www.brainyquote.com/quotes/quotes/j/jimrohn121282.html. 19 January 2013.

Woodruff, Mandi. Yahoo Finance. 4 September 2012. http://finance.yahoo.com/news/21-ways-rich-people-think-differently.html?page=all. 16 January 2013.