“Get rich or die trying” in 10 steps.
Curtis James Jackson III, better known as the American rapper 50 Cent, entitled his 2003 album with the following self-explanatory name: Get Rich or Die Tryin'. This attitude manifests itself in many individuals and is even in certain ways dictated by current society. Becoming rich was for many people an unrealizable dream, but the current generation does try to make this dream come true, often by annihilating any obstacle in their way. Below you will find a step by step routine that has helped many to pursue their financial dream. Please note: if you do not develop a sense of compliance, even the highest amount of wealth can not make you happy. Wealth does not equate happiness.
I: Design a financial plan for your personal life
In contrary to making holiday plans, most do not invest time and effort to make a calculated financial plan for their personal life. The latter is however of far greater importance. Many people resent to making a financial plan for their personal life, while at the same time looking forward to making explicit plans for their next holiday. So how to start with the design of the financial plan of your personal life? Write down the exact amount of income on this moment in your life and how much you strive to have after ten or twentyfive years. After establishing this, the next question would be how to achieve this? A PC with a financial planning program can prove useful to help answer this question. Such a computer program asks questions to determine both your current financial situation and your future goals. The next step this program takes is to calculate how your financial situation should become for each year in between these two scenarios in order to achieve your set goals. Another interesting feature is that such a program gives suggestions for points that can or must be altered in order to optimalize the route that leads to your set goal.
II: The self-fulfilling prophecy
The principle of the self-fulfilling prophecy consists of the theory that what you expect to happen, will actually happen. The mechanism involved is that people steer themselves in order to comply to their set expectations. Many people naturally think that success and thus financial wealth is not meant to be for them personally, in contradiction some other people think that becoming rich is a choice. Therefore, you should start thinking as a millionaire and communicate yourself as such to others (this should better be done on a business level then on a social level, otherwise you can lose a lot of friends, however some “diehards” do this in their entire life in order to maximalize their profit). Words such as ‘impossible’ or ‘can not’ should no longer be in your vocabulary. See chances, embrace chances and work hard to maximalize the benefit of these chances to their full extent.
III: Observe and visualize possibilities
A large degree of creativity and business instinct is needed to see a hiatus that lies open for exploit and after that actually get rich off of doing just that. A lot of people therefore find refuge in taking profit of the smart ideas of others (examples are the start of the medium internet or the shift in the telecom business).
IV: Knowledge = power
Try to eliminate the unnecessary use of financial experts as much as possible. Yes, they also need to make a living, but preferably as little as possible off of your gullibility. Broaden the knowledge of the subject at hand, if you know you are capable to do so. Warning: developing and computing budgets, and the subsequent administration is not the most inspiring work (and that is an understatement). Keep in mind however that on the long run this is going to save you substantial costs. Add to this that you do not depend on others anymore and you have just substantially decreased the chance that someone is going to rip you off.
V: Working ethics
Money does not come without effort. Research shows that millionaires work harder than your average neighbor. A nine to five mentality does decrease your chance on making a fortune intensively. Work hard, but take pleasure in doing so and know your own boundaries before having to know them (e.g. in case of a ‘burn-out’). If you do not learn this lesson now, you will end up overwrought in no time, if not worse.
VI: Take calculated risks
Those who want to avoid all risk, will never become really rich. Scout for relatively safe investments that offer a high profit and invest only money that you could spare to loose. Experts often choose for a stock portfolio that offers a profit of 12% annually. They normally do that by investing a part of their sum in stocks with high risks but also profits of 20 to 30%, the rest of their sum is invested in more conservative funds. Do not make the mistake of investing in an offer that offers an unusually high profit, because if you do others will be making their profit off of you.
VII: Generate additional cashflow
Search for additional sources of income besides your day-to-day job (e.g. by buying a small piece of real estate and rent that to others (not anyone has what it takes to do so) or invest in stocks). The bonus is that even if one of your sources is drained, other sources are still providing income to you.
VIII: Stash your cash
Millionaires of all people look after their money and will not spend it indifferently. So you managed to substantially increase your income? Good job, now keep managing your spending (do not immediately buy an expensive car, do not spend enormous amounts on vacations) pattern! If not: “easy in (income), easy out (spending)”. Experts advise you to take 10% of your income and put that on the bank, and to do that directly after receiving your income. Manage all your bank accounts and switch them, if you can make more profit elsewhere. Cars are also an enormous set-back, buy cars preferably second-hand instead of showroom state. Do not buy expensive, extravagant clothing; live on an average budget and most important of all: do not have debts (except for your mortgage).
IX: Inspiration inspires
Staying motivated consequently for prolonged period of time all alone is a very difficult task. Often this will result in you lacking the drive to consistently convert ideas into actions (since there is no direct stimulation to do so). Find a buddy that has comparable goals to achieve (here there is overlap with point II). Ask someone you admire to be your sparring partner or better yet your mentor.
X: Patience is king
Becoming rich is a slow but steady process. Keep your calm, keep your vision sharp and stay disciplined! Point I clearly stated that you design a plan for life.