How to truly be rich

      


It's a question everybody wants to know: how do I truly be rich? Rich, as in having lots of money (not as in having lots of friends, happiness and health - those are also important, but they are a different matter). Now, how to you became financially rich. It's very simple. I can explain it in one sentence:
to become truly rich, just make sure that the money coming into your pocket exceeds the the money going out, at all times.

It is a simple rule, and yet some people master it better than others. I have seen many people who earns very low salary, yet they become much richer than people who earn a high salary. On the other hand, there are people who earn a fat salary, and yet they are miserable and poor.

Increasing Your Income

Here are some tips for increasing your income:

a) Never put your eggs in one basket. In other words, diversify your steams of income. Earn rental income. Buy a house, an apartment, a shoplot, anything, and rent it out. Do your math before you buy. Make sure your rental pays for the mortgage. Buy stocks that yield good dividends. Dunno how? Then learn. Read books, ask helpful, successful people. Don't waste too much time with those who are unhelpful. Your time is precious. Learn to build a website that earns you money as you sleep. Those are just some examples of how you can diversify your income.

b) Optimise your earnings Don't buy properties blindly. Same goes for stock. Do your homework. Research its value. Don't buy unless you are definite it is good value. Always go for low price high value items. As for earning money from the web, if you want to seriously consider it, make sure you can be successful in it, or else don't waste your time. Do the research.

c) Start saving early The earlier you start a saving habit, the more you will have. Make it a habit that you follow for the rest of your life. It is a pattern that people who send will not suddenly become frugal overnight. It takes time to get used to the habit of saving, and the earlier you start, the better. Similarly, encourage your children to save their pocket money, to put aside a sum for their own future. It will be a habit they follow for life, and they will be thankful to you for this simple advice.

Decreasing Your Expenses

a) Don't spend unnecessarily Everybody has wants, and in this commercialized society, we are bombarded with advertisements day in day out, telling us that we amount to nothing until we have spent our last dollar on something we don't need. Flee temptation! Be vigilant against all forms of marketing. Build an armour against the commercial assault. Don't look at ads. Leave the TV when the ads come on.

b) Stay in affordable neighborhoods Don't buy expensive house. They are equally expensive to maintain, and erodes your savings capability. Choose a neighborhood where your income level is slightly above the average. That way, you can live below your means and still blend in with the neighbors. You won't feel the need to keep up with the Joneses.

c) Choose frugal friends There's nothing worse to ruin your chances of being wealthy than peer pressure. Choose friends whose spending habits you wish to emulate. They are often the same type of people who are able to give you useful tips on how to invest your money, what business leads and opportunity are available. Stay away from so-called friends whose only purpose in life is to spend all that they earn. The more you mix with them, the more you will become them.

Conclusion

You do not need a high income to become a wealthy person. The secret has out: play good offense, play good defence. Earn as much as you can, and spend only on the necessary. Spending money won't buy true happiness. Having good friends, good family, good health, a good bank account and a good night's sleep are the more important ingredients.