Wealth after all is a relative thing since he that has little and wants less is richer than he that has much and wants more. – Charles Caleb Colton
As this difficult year winds down, many of us think about how to become rich in this seemingly lifeless economy. It’s difficult feat to meet for most people for the simple reason that our role models are those who merely act rich in life.
Our society admires those who wear fancy suits and drive expensive cars simply because of the glamour and excitement. These role models teach us to spend our way into oblivion. Sadly enough, those of us who chase possessions end up being possessed by worries —to keep the lifestyle going when rainy day comes.
There is no surefire way to become rich; it requires common sense thinking and discipline. The good news is that millionaires think alike. All we need to do is to make commitment to learn from these glamour-less people who have become rich and not from those who we idolize in our society.
I don’t work for money, money works for me.
Millionaires seek unrealized income. Unrealized income comes from sources other than regular pay. The secret about unrealized income is in its power to defer taxes; and it grows faster due to law of compounding returns. There is no income tax on asset that appreciates yet has no earned income. Wealthy people invest in income producing real estate and mutual funds. Unrealized income is one of the greatest investment tools to become rich.
I’m passionate about what I do.
Millionaires have passion for what they do. They don’t have to think how to become rich as wealth comes as by-product of what they love to do. I remember, when I worked as an Engineer for GE, my superior defined goals for the year that weren’t mine. I worked for the rest of the year struggling to meet those goals. These goals were mine only for the sake of earning paycheck. Once I realized that fact, I knew deep inside that, I had to transform my career from wage earner to wealth earner. When you work for yourself, you have goals that you are passionate about.
After all, it is my money.
Millionaires are frugal at heart. They are masters of budgeting and planning. They master the art of haggling. They won’t buy what they cannot afford. They spend based on their “needs” not by “wants”. They do not buy brand name shoes or suits. They do not buy anything on impulse. They do not drive BMW and drink coffee at Starbucks just for the sake of status symbol. They plan for their monthly need and only buy what they have on their list. They are not in business of pleasing others; they are in business of pleasing their inner self.
Pay yourself first.
Millionaires save regularly. They live life way below their means by avoiding debt and spending wisely. They understand that the way to riches is a long road of financial discipline. Their secret of wealth is that they start saving and investing early on in their lives into mutual funds and other tax deferred investments.
Those who have achieved wealth have uncanny ability to find a role model whereas we, the mere mortals, often lost half of our battle to become rich simply by not having the role model who can shape our financial destiny.
It is the heart that makes a man rich. He is rich according to what he is, not according to what he has.
– Henry Ward Beecher