Money. It’s a drag having to chase the dollar, right? But we spend so much time, literally decades of our lives, trying to make that buck, we might as well optimize our money-making. We might as well make sure we’re making the maximum dollar for the effort we put in.
When it comes to making money “effort” is a tricky term. Simply working hard won’t make you rich. You need to work smart as well. And sometimes that also means playing the long game—you gotta save, invest, and live frugally for years before you see returns. But take comfort in the fact that those are proven ways to make it. Like diets, it’s best to stay away from fads and quick-fix techniques, and stick to the basics.
Below are some of those basics. For the record, I’m not a multimillionaire (yet!). But I’m putting in the work, putting in the time, and playing my cards right. And if you do the same, who knows, we might even get rich together!
First, a disclaimer
The internet is full of advice on how to get rich without any sort of dedicated effort. How many spam emails have you gotten about some teenager from Nowheresville who earns six figures in a single day? Usually, those emails offer to sell you a get-rich secret, but you should already know that those are always shady. The only person getting rich here is the person spamming you.
To put it bluntly, there is no magic lever you can pull to instantly become a billionaire-mogul-jet-setter. It’s just not going to happen.
Now that I’ve laid the truth on you, it’s time to list down the things that CAN make you rich.
1. Get rich by building a lucrative career
Since your income is directly tied to your career, it goes without saying that your career will most likely be the path that leads to a life of wealth. But as with literal paths, you need to walk it entire length to see results. Also, while it’s never too late to get off the couch, starting early gives you a better chance at achieving your goals.
Here are a few things you can do:
Focus on your academics
Life has a pretty set path: get good grades in elementary and high school; get to a good college (possible on scholarship); get a much sought-after internship; get a good, high-paying job.
This doesn’t mean that people without the financial means should be left out. There are different vocational or training courses one could take. This could also lead to a fulfilling (and lucrative) career later on.
Choose a lucrative field
The cold-hearted fact is that some industries aren’t as lucrative as others. If you’re open to trying different things, you’re in luck. You can study the current business environment and decide from there.
That said, I still think you can work in a less-lucrative field if your passion and skills lead you in that direction. If you do, prepare for an uphill battle. But think about it this way: when you succeed, it’s going to be all the sweeter, because you blazed your own unique path.
Be mindful of location
Location, location, location. It’s the same for real estate, it’s the same for building a career. Some industries are associated with certain locations, such as tech and Silicon Valley.
It’s hard to get noticed in a locale that doesn’t value your vision, so you have to be ready to uproot yourself and move to where the action is.
Be willing to start at the bottom
Again, this article isn’t about instant gratification. If you want to make it, you need to climb the ladder. But think about it: if you got instantly promoted to senior vice president tomorrow, do you think that would work out well? Assuming you’re not actually an SVP right now, of course not. Moving up to a pay level you’re not qualified to take could be disastrous. It’s better to build your skill sets and move up along with them.
Consider other companies
We all grew up admiring the company man who sticks to his job for decades, retires, and draws a pension. It’s the safe road, but it’s also a surefire way to stagnate.
I’ve found that jumping to another company is a great way to bump your salary because companies will try to entice you away from your current one by offering a better package. Do this a few times, and you’ll be making more money than other employees on the same level.
Take note, though, that this doesn’t mean you should jump every six months; potential employees do value loyalty and dedication. So don’t do this too much; balance is key.
2. Get rich by making investments
It’s tempting to just stockpile all the cash you make. While it’s a good idea to have substantial funds ready for rainy days, the interest you earn isn’t enough to keep up with inflation. Once you’ve reached a certain amount of savings, invest anything beyond it.
This is a bit next-level because you need to be willing to take risks, and have substantial knowledge about how investments work. Fortunately, not all investments are stock market-related.
Invest in higher education
Earlier, I mentioned academics. Study doesn’t have to end when you graduate. In fact, there are many postgraduate courses you can take, like an MBA. An MBA may be pricey, but it gives you the necessary knowledge on finance and business—things that can make you rich.
Put your money in stocks
Again, this requires a high tolerance for risk. But play your cards right, and you can earn big. Good investments can mean a comfortable (and even early) retirement. If you’re keen on investing, I suggest calling your bank and asking for a wealth manager or financial advisor. They should be able to explain the nitty gritty about bonds, stocks, and other high-yield investment schemes.
If you’d like to test the water first, a mutual fund is a great way to start. With a mutual fund, a financial manager gathers contributions from a large number of clients (one of which will be you) then invests that money in stocks. The larger amount could mean larger returns for the clients. Also, the fund manager can tweak the program according to your preference, whether it be high-risk, high-yield, or low-risk, low-yield.
Invest in real estate
This requires a bit more money than other types of investments, but the payoff could be huge. While properties in big markets like San Francisco are sure to appreciate in value, they are very expensive. You can look into cheaper pieces of property and, like stocks, try to predict how its value will appreciate in time. That way, you can adhere to the business dictum of buy cheap and sell high.
Investing in property is also a hands-on endeavor. There’s the real estate tax you need to manage, and if you’re investing in an occupied residential building, you’re responsible for all repairs and the well-being of your tenants.
Avoid liabilities and assets that depreciate in value
A new car may seem like a good investment, but think about it: the moment you drive out of the dealership, the car automatically loses a percentage of its resale value. Plus there’s the regular upkeep and insurance you need to stay on top of.
I’m not saying a new vehicle is necessarily a bad thing to get, but use that example to make yourself more mindful of the things you buy. If you really do need a car, say, for business, will it pay for itself in time? Maintain this mindset.
3. Get rich by cutting unnecessary expenses
It seems ironic that to become rich one has to live frugally. Turn on the TV or get on the internet, and you’re sure to find some celebrity flaunting their mansions and luxury cars. Good for them, but I’ve also seen countless celebs and athletes go bankrupt because they lived beyond their means. I prefer to look to people like Warren Buffet and Bill Gates-people who live relatively simply, but know how to spend money wisely.
Here are other things you can do along those lines:
Stick to a budget
This is something we learn the moment our parents started giving us an allowance. But now we’re adults, it’s a bit trickier to stay within budget while saving and wrestling with the multitude of bills and deadlines that adulthood brings.
Delay your gratification
Just because you can technically afford something now doesn’t mean you should buy it. You should look into delaying the gratification and putting your money into savings and investments first. And when the time comes that you buy that thing you’ve always wanted, the experience will be sweeter.
Don’t fall for sales
Just because something is on clearance, that doesn’t mean you should get it. My motto is, it’s better to buy something at full price if you can truly afford it, than buy something at a steep discount if you can’t.
Downgrade your lifestyle
This might be the most difficult item of all. After all, we all look to our lifestyles as a validation for our success and spending power. You should accept that the things you have don’t always correlate to the amount of wealth you have. Go to the mall and look at all the people with the latest sneakers. I’d wager that not all of them are as rich as they look.
Instead of getting coffee at a Starbucks, brew your own coffee. Instead of buying trendy clothes, get timeless basics. Instead of getting a flashy body kit for your car, get that long overdue maintenance check. Instead of spending like a rockstar, invest like a responsible person.
How to become rich and stay that way
Follow the above pieces of advice long enough and religiously enough, and you’re bound to become wealthy. But when you do become wealthy, how do you stay that way?
The answer is simple: you go back and do it all over again. Keep saving. Keep investing. Live simply. I should add “relatively” to “simply.” This means you can afford to indulge in a few things and reward yourself (within reason). The key is to stay well within your means. You don’t want to become a cautionary tale, or worse, homeless.
So let’s all keep pushing forward, and hopefully, we all make it!
When it comes to making money “effort” is a tricky term. Simply working hard won’t make you rich. You need to work smart as well. And sometimes that also means playing the long game—you gotta save, invest, and live frugally for years before you see returns. But take comfort in the fact that those are proven ways to make it. Like diets, it’s best to stay away from fads and quick-fix techniques, and stick to the basics.
Below are some of those basics. For the record, I’m not a multimillionaire (yet!). But I’m putting in the work, putting in the time, and playing my cards right. And if you do the same, who knows, we might even get rich together!
First, a disclaimer
The internet is full of advice on how to get rich without any sort of dedicated effort. How many spam emails have you gotten about some teenager from Nowheresville who earns six figures in a single day? Usually, those emails offer to sell you a get-rich secret, but you should already know that those are always shady. The only person getting rich here is the person spamming you.
To put it bluntly, there is no magic lever you can pull to instantly become a billionaire-mogul-jet-setter. It’s just not going to happen.
Now that I’ve laid the truth on you, it’s time to list down the things that CAN make you rich.
1. Get rich by building a lucrative career
Since your income is directly tied to your career, it goes without saying that your career will most likely be the path that leads to a life of wealth. But as with literal paths, you need to walk it entire length to see results. Also, while it’s never too late to get off the couch, starting early gives you a better chance at achieving your goals.
Here are a few things you can do:
Focus on your academics
Life has a pretty set path: get good grades in elementary and high school; get to a good college (possible on scholarship); get a much sought-after internship; get a good, high-paying job.
This doesn’t mean that people without the financial means should be left out. There are different vocational or training courses one could take. This could also lead to a fulfilling (and lucrative) career later on.
Choose a lucrative field
The cold-hearted fact is that some industries aren’t as lucrative as others. If you’re open to trying different things, you’re in luck. You can study the current business environment and decide from there.
That said, I still think you can work in a less-lucrative field if your passion and skills lead you in that direction. If you do, prepare for an uphill battle. But think about it this way: when you succeed, it’s going to be all the sweeter, because you blazed your own unique path.
Be mindful of location
Location, location, location. It’s the same for real estate, it’s the same for building a career. Some industries are associated with certain locations, such as tech and Silicon Valley.
It’s hard to get noticed in a locale that doesn’t value your vision, so you have to be ready to uproot yourself and move to where the action is.
Be willing to start at the bottom
Again, this article isn’t about instant gratification. If you want to make it, you need to climb the ladder. But think about it: if you got instantly promoted to senior vice president tomorrow, do you think that would work out well? Assuming you’re not actually an SVP right now, of course not. Moving up to a pay level you’re not qualified to take could be disastrous. It’s better to build your skill sets and move up along with them.
Consider other companies
We all grew up admiring the company man who sticks to his job for decades, retires, and draws a pension. It’s the safe road, but it’s also a surefire way to stagnate.
I’ve found that jumping to another company is a great way to bump your salary because companies will try to entice you away from your current one by offering a better package. Do this a few times, and you’ll be making more money than other employees on the same level.
Take note, though, that this doesn’t mean you should jump every six months; potential employees do value loyalty and dedication. So don’t do this too much; balance is key.
2. Get rich by making investments
It’s tempting to just stockpile all the cash you make. While it’s a good idea to have substantial funds ready for rainy days, the interest you earn isn’t enough to keep up with inflation. Once you’ve reached a certain amount of savings, invest anything beyond it.
This is a bit next-level because you need to be willing to take risks, and have substantial knowledge about how investments work. Fortunately, not all investments are stock market-related.
Invest in higher education
Earlier, I mentioned academics. Study doesn’t have to end when you graduate. In fact, there are many postgraduate courses you can take, like an MBA. An MBA may be pricey, but it gives you the necessary knowledge on finance and business—things that can make you rich.
Put your money in stocks
Again, this requires a high tolerance for risk. But play your cards right, and you can earn big. Good investments can mean a comfortable (and even early) retirement. If you’re keen on investing, I suggest calling your bank and asking for a wealth manager or financial advisor. They should be able to explain the nitty gritty about bonds, stocks, and other high-yield investment schemes.
If you’d like to test the water first, a mutual fund is a great way to start. With a mutual fund, a financial manager gathers contributions from a large number of clients (one of which will be you) then invests that money in stocks. The larger amount could mean larger returns for the clients. Also, the fund manager can tweak the program according to your preference, whether it be high-risk, high-yield, or low-risk, low-yield.
Invest in real estate
This requires a bit more money than other types of investments, but the payoff could be huge. While properties in big markets like San Francisco are sure to appreciate in value, they are very expensive. You can look into cheaper pieces of property and, like stocks, try to predict how its value will appreciate in time. That way, you can adhere to the business dictum of buy cheap and sell high.
Investing in property is also a hands-on endeavor. There’s the real estate tax you need to manage, and if you’re investing in an occupied residential building, you’re responsible for all repairs and the well-being of your tenants.
Avoid liabilities and assets that depreciate in value
A new car may seem like a good investment, but think about it: the moment you drive out of the dealership, the car automatically loses a percentage of its resale value. Plus there’s the regular upkeep and insurance you need to stay on top of.
I’m not saying a new vehicle is necessarily a bad thing to get, but use that example to make yourself more mindful of the things you buy. If you really do need a car, say, for business, will it pay for itself in time? Maintain this mindset.
3. Get rich by cutting unnecessary expenses
It seems ironic that to become rich one has to live frugally. Turn on the TV or get on the internet, and you’re sure to find some celebrity flaunting their mansions and luxury cars. Good for them, but I’ve also seen countless celebs and athletes go bankrupt because they lived beyond their means. I prefer to look to people like Warren Buffet and Bill Gates-people who live relatively simply, but know how to spend money wisely.
Here are other things you can do along those lines:
Stick to a budget
This is something we learn the moment our parents started giving us an allowance. But now we’re adults, it’s a bit trickier to stay within budget while saving and wrestling with the multitude of bills and deadlines that adulthood brings.
Delay your gratification
Just because you can technically afford something now doesn’t mean you should buy it. You should look into delaying the gratification and putting your money into savings and investments first. And when the time comes that you buy that thing you’ve always wanted, the experience will be sweeter.
Don’t fall for sales
Just because something is on clearance, that doesn’t mean you should get it. My motto is, it’s better to buy something at full price if you can truly afford it, than buy something at a steep discount if you can’t.
Downgrade your lifestyle
This might be the most difficult item of all. After all, we all look to our lifestyles as a validation for our success and spending power. You should accept that the things you have don’t always correlate to the amount of wealth you have. Go to the mall and look at all the people with the latest sneakers. I’d wager that not all of them are as rich as they look.
Instead of getting coffee at a Starbucks, brew your own coffee. Instead of buying trendy clothes, get timeless basics. Instead of getting a flashy body kit for your car, get that long overdue maintenance check. Instead of spending like a rockstar, invest like a responsible person.
How to become rich and stay that way
Follow the above pieces of advice long enough and religiously enough, and you’re bound to become wealthy. But when you do become wealthy, how do you stay that way?
The answer is simple: you go back and do it all over again. Keep saving. Keep investing. Live simply. I should add “relatively” to “simply.” This means you can afford to indulge in a few things and reward yourself (within reason). The key is to stay well within your means. You don’t want to become a cautionary tale, or worse, homeless.
So let’s all keep pushing forward, and hopefully, we all make it!
