How to Get Rich – Step by Step Guide
People now days read many articles and many motivational speeches and think they will become rich. Yes, you can gain knowledge and be aware of new /old ways of becoming millionaire or billionaire. But to be rich /wealthy you must have a proper plan, strategy, and self-motivation.
But first thing, you should know that you cannot get rich by working 9 to 5 (extra unpaid hours till 9 pm, so basically you are working for 12 hours) at least in India. We are 130 Crores people. But there are less than 50 million / 5 Crores businessmen in India and how many of them are billionaires, less than 140.
Australia’s population is less than 3 Crores and has 33 billionaires. USA’s population is close to 51 Crores, a number of billionaires 585. See the difference? It is also true that in India 40% billionaires have inherited the wealth and there are only a few (15 to 20) self-made billionaires.
We have hundreds of thousands of millionaires. There is an increase of approximately 190% in a number of millionaires in India in the last decade. It is estimated that we will have 1 million millionaires by the year 2030.
We are not raised to be an entrepreneur. Our system does not encourage us to be Entrepreneurs. Most of us want to get government jobs (Which are less than 2% of total jobs) and get comfortable in life by earning limited.
It is difficult to get rich in a country like India due to red-tapism; corruption, service class mentality of most of the people, family backing etc. Even girls also prefer marrying guys having government jobs. Correct if I am wrong. Haha.
Anyways enough of complaining about how we are not designed to be an Entrepreneur. Let’s do some work now.
1. Financial Intelligence:
Once we pass the 10th class, family, relatives and friends are ready to push us for Science stream. And we take it, pass it with good numbers, become an engineer or doctor, or a lawyer in some cases, consultants etc.
We start earning well but we are not becoming rich, why? Because the plus-minus, profit loss, compounding interest etc are being taught in detail in Commerce stream and we learn the rule of financial management very late, probably after 7 to 8 years of steady job and income. Taking the science stream is good but you should also focus on gaining financial intelligence which is a must.
Start learning how to save on your taxes, how to invest which will help you save taxes. It is the most important.
2. Find a mentor:
You can go by try & error method to know things, to know what works and what not. Or just find a mentor who is ready to guide you and teach you things those are tried and tested, proven to be working.
It will save a lot of time, energy and money. Just make sure you find a mentor who has already done this and a multi-millionaire or a millionaire at least.
3. Develop a plan:
Develop a saving and investment plan based on your income. Decide where you are going to invest and how much? How much you are going save, how much you are keeping as an emergency fund. A plan that you have to keep updating to make new goals, new decisions and that forces you to take aggressive actions and not just talk. The more efforts you put in your plan and follow it, the more it will help you achieve your goals.
While developing a plan, do not overdo it, make a plan which is feasible for you. Do not put unrealistic goals which only discourage you in taking any actions. Focus on what matters most. Focus on controlling your unnecessary expenses.
4. Work on increasing your income:
Work on increasing your income does not mean you work over time. If you have read books on self-development then every book has this principle mentioned in them that make your money work for you, do not work for money. You should be making money while you sleep. In today’s economy, you cannot save money from your income and become a millionaire.
Basically increasing your income means doing something extra you are already doing to increase your income. Sell extra, invest more. Have increment in income and keep repeating it.
5. Multiple your income streams.
You can also focus on increasing your streams of income. Have multiple businesses to increase income streams, not necessarily you have to earn millions from each. More than 60% of self-made millionaires have multiple businesses.
You can invest in some startup. To be Indian specific, invest money in a friend’s or relative’s business. Help them grow and grow your money with them. For example, If you have a stable income from one stream and you are saving more than 40% of it, then start your own venture, start a fast food venture on a good location.
You can increase your income by side business, work part-time on your creative idea or offer part-time consulting or services, make good investments, rent out your home or shop. Investing in real estate, starting a food joint is the biggest profit-making businesses in India if you have a good team and manage it well.
Related: 11 HABITS OF SELF MADE MILLIONAIRE
6. Upgrade your skills and knowledge.
Try to read at least 30 minutes every day. It can really help you think differently, spend less time on social media and use this time to learn something. Many knowledge you have more you value you have. More skills you have, the more things you can do by yourself. Remember more value you have, the more money you make. Rather than spending time on social media, invest time in learning a skill, learn a new language, listen to an audiobook, learn something from YouTube.
7. Live like a poor person.
It is very much known fact that billionaires like Bill Gates and Warren Buffet still use their old car and not spend heavily on such items which are depreciating in value. They do not buy branded clothes just to show off. They try to live below their means.
You buy a phone which is 50000 INR, after a couple of years you will buy again. Rather buy a phone for 25000 and invest 25000 in buying stocks of that phone company or some other stocks. Or invest in Gold, MFs.
Related: WHY CAR KEEPS YOU POOR
8. Have a group of millionaire friends.
In any culture any country you visit, this philosophy is there. The level of friends you have, it reflects on your net worth. Hang out with 5 millionaires and you become the 6th one. We become like people with whom we associate daily. The mindset and thoughts are different from millionaires. You can gain so much from them by associating with them, explore new opportunities.
9. Start early:
Starting a business or start investing can also be a good way to start your journey. Most people start investing or start a business after they have a stable income. So better you start a business early or start investing early. Famous billionaire, investor Mark Cuban started selling garbage bags at the age of 12.
10. Born rich:
One of the easiest ways to become a rich person is to be born to rich parents. Haha. But since were to take birth is not in our hands so you better try the above method. Even if you are born to rich parents then also hope this article will help you.
Apart from the above point, I will throw a few more points to remember and act upon them. Just general rules.
- Once you decide on investing, try to read books written by Warren Buffet. Try to read as much as you can. Reading can really help you know more dimensions in every aspect of life.
- Start a job or business as early as possible. If you already working then try to learn as much as possible, you need to have at least 10,000+ hours of experience if you want to start a business in the same field.
- Try to increase your network, connection, use social media to your advantage. In India, we get more business through referrals. Do not forget that.
- Start small, grow slowly, and expand every day. Even if you expand 1% every day, you will have expanded more than 300% in a year.
- Start from somewhere, most people have many ideas but 90% of people do not take actions. If you take one step, you are already ahead of them.
- Once you establish a profit-making model, try to increase the profit by selling more, doing more. And keep repeating it.
- Think about long term goals, short term goals and tasks are only distractions.
- Try to associate with freelancers, and other personnel who are already in your field. Show them what value you can add to their services.
- Try to avoid any kind of debt which you cannot pay later.
- If you want to create your own niche then think about products which can be used by millions of people, not necessarily it has to be a high-value product. Think about something small and sell in millions, or think about a premium product and sell into to premium market, or do both.
- Try to find problems first, and then offer solutions. It works when you want to create some product.
- And most importantly never give up. It is just that 1 step you take after so many failures which will change your future.
Hope this helps guys. As I said earlier, we will have a million millionaires by 2030, are you going to be one of them?
Here is some of the book which will help you in your entrepreneurial journey: