How to become rich?

Ha! The famous question. Yes, you will get your answer here. But first of all, the word “rich” is so vast that it would be recommended to actually understand it.

Being rich is totally different for everybody. There are two basic fundamental way to perceive richness. For starter, we have state-based rich. That’s when you define your rich level based on a financial state that allows to be more free. 

Then you also have material-based richness. Simply put, you based your richness out of valuable things. Being rich with a material-based mind is actually harder than looking for a rich financial state. Let’s see first how we can tackle being rich for both of these scenarios.

Being rich state-based

People in this school of thinking defines richness by reaching a positive financial position. It often starts as easy as “I’m rich because I have no debt”. Then from “no-debt” you get to the position of “I have 3 months of expenses to secure my finance”. Imagine, if you have 3 months of expenses saved and not debts, you’re already richer than 50% of the population!

Then the following financial-states go on like this:

Going this path is actually “easier” on my mind and very wealth-focused. If you already think this way, you’re already half way there!

Being rich material-based

Even though the rewards feel greater for this school of thought, grinding the riches through this state of mind is a lot harder. Why? Because most materials can be obtainable through credits or other means. This makes it pointless and effortless to become truly rich and just fake it … until you maybe make it or have the bank gets it back from you.

Also, it’s also risky to end on an infinite spiral of unsatisfactory materials. Why? Well, there’s always something MORE valuable to have, ever. Oh so you just got that Bugatti Veyron? What about a Gold and Diamond Plated Veyron instead, you peasant! Most of the time you will lose satisfaction after getting the new valuable material.

If you prefer this path, you need to actually strongly define what is the next valuable material and start SMALL. Let’s take cars per example, instead of aiming for the luxurious exotic car, dress a list of cars in order of acquisition based of your financial state. A simple trick is to always make DOUBLE the revenue of the value of the car you want. So if your next goal is a 30k valued car, wait until you make at least 60k of revenue. 

Once reaching high-end values, work toward a different state of mind and enjoy being free rather than reaching for the next valuable and remind yourself where you came from.

5 Strategies to become Rich

1.Define your current and next rich level goal

Yes, you got it right. In your life you need to understand that you will become rich MANY times. You might say that being debt-free is not being rich, but that still makes you A LOT richer than anyone who has debts. Which is actually a big step!

So before you do any actions, define where you are in your richness level and set your goal accordingly.

State-based mindset: Inspire yourself from the example above and set yourself a new state goal!

Material-based mindset: Based on this guide on how-to set material values based on revenue, check out what would be your next valuable upgrade.

2. Understand your spending

It’s easy to get lost and start overspending. To do so, its important to know where your money is going and mostly WHY. Do you truly need to spend all that? If so, does it helps achieve your next richness level? Can you find a way to reduce it?

A nice trick is to focus on the amount you have available per month. This will help understand the importance of cash flow. Instead of making 4k net a month, check how much you have left of that 4k just by… living. Spoiler alert, out of that amount, if there’s less than 900$ … I got some really bad news! 

Well the good news is that using an app like Miza will definitely help you figure out where you are overspending and also calculate your cash flow at the same time.

3. Stack and Stack

Now that you have a nice cash flow, it’s time to stack the money. Stack it and invest it. Don’t look at it! I would even recommend to have a hard-to-access bank statement just for you to prevent checking it everyday. Investing is a long-run but profitable strategy. It’s alright to check it out every 4-6 months or so, but not more often.

Before doing real investments, you need to be yourself in a strong financial position.

4. Self-improvement

An important part is to aim for continuous self-improvement. This will increase your value, thus increasing your worth (read here, salary). Depending what level of richness you want to reach, heading to the highest point requires that you increase your value as a human.

Of course you can still be free by keeping a somewhat entry-level job, but that also means that you should expect the entry-level of being rich, which is fair!

5. Increase your revenue streams

Usually if you want to achieve the highest levels of richness you need more than 1 or 2 revenue streams. For that, you need to be creative with your investments.

Unfortunately we cannot suggest anything as it would be biased, but a few examples would be real estates, invest in projects (of people who already showed to be successful), do more private investments and so on. If you have a skillset and a hobby, you could even invest in that and monetize it!

And that’s it! As it seems simple, it is not. There’s a lot of factors to be taken into consideration such as the salary, the cost of living of your area and so on. For the salary, if you are satisfied with it but don’t want to reach higher points, you’ll have to put more efforts on the investment parts.