Rules To Get Rich

#rules#

 

 

You Have To Earn It

If you want to get rich and grow wealth, you have to earn it. There’s no way you’re going to get to what you want and where you want to be if you’re not trying to get there.
With money, this is pretty darn straightforward. You want money? Get out there and start making it. Get a job. Get a second job. Get a third job. Start side hustling and doing side projects to make more money. Are you in college? Get a side job in college to pay for school.

You Need To Save Until It Hurts

The second rule to getting rich is saving. It’s not enough to just earn money – you have to save it as well. Otherwise you’ll just end up like any number of famous celebrities who’ve gone bankrupt. Income alone just doesn’t cut it. You have to save.
But the real “rule” to get rich here is saving until it hurts. How much is that? Well, if you’re not hurting yet, it’s not enough.

You Need To Optimize Your Spending

The third rule to grow wealth is to optimize your spending. I’m not one to judge your spending – spend more or spend less. My personal belief is you should buy whatever you want – just earn more money so you can afford it.
But no matter what, truly wealthy people optimize their spending. This means they find good deals – even if they are going to buy a Ferrari, you can bet they searched around for a deal and negotiated the price.

You Must Put Your Money To Work For You

The fourth rule is that you have to put your money to work for you. Earning it is your part of the heavy lifting. You need your money and the power of compound interest to work together over time to grow wealth for you.
What does this mean? It means that you need to invest. Why? Because the average inflation-adjusted return for the S&P500 for the last 60 years has been 7%.

You Always Need To Minimize Your Taxes

The sixth rule for getting rich is always be minimizing your tax liability. No matter your income level, you always need to be thinking about how to minimize your taxes. Taxes can prevent you realizing wealth over time because they consistently eat away at your income and investment returns.