Tons of people want to get rich quickly.
And that is fine as long as you are going it your own way because you probably won't get rich quickly by following someone else. If you are building something special that a lot of people will want to have and use, then you can become rich almost overnight. Some breakthroughs happen very quickly.
But at the same time you are working on your big plan, you can be setting aside money to make you rich slowly.
I recently wrote about Stacy Johnson's 10 rules to make you a millionaire, and this was rule #6. Stacy said there are just six ways to become rich:
- Marry into money
- Inherit money
- Exploit a unique talent
- Get exceedingly lucky
- Own or lead a successful business
- Spend less than you make and invest the savings wisely over long periods of time.
So while you are working on any of those first 5, you should always be putting some money aside to become rich slowly.
Think of it as your millionaire backup plan. You know, one of those things that if you do it every month you will have a million in 30 or 40 years. I mean, it only takes investing $10 per day ($300 per month) to make you a millionaire in 40 years at just 8% annual interest.
I know it isn't as exciting as putting everything you have on a random penny-crypto and hitting it big, but it will work. Just having this slow wealth growing day by day will give you the mental freedom to go big on the other investments in your life.
Have you ever read or heard someone say "I put my life savings into this project"?
Well, what if the project fails? Then this person is put off from taking chances in the future. Think of people that lost it big when crypto collapsed recently or another investment went bust. Some people had even gone into max debt and mortgaged their homes to buy Bitcoin when it was peaking.
Now Bitcoin is worth about 40% of what they bought it at AND they have to make payments with interest! This means they have to sell some at this low price every month just to keep up! I talked about how bad this is in my recent article 5 Things You Need To Do Before You Invest.
Maybe that wasn't the time to go "all in" on something. Maybe the next opportunity was the right chance to make a fortune, you just never know. I mean you so often hear about those that took a big risk and it paid off, but never about those that took that same chance but lost it all.
What I mean about having a wealth backup plan is for the freedom of risk it gives you. To know that whether or not this is the thing that makes you, you still will become wealthy one way or another.
So the real wealth the getting rich slowly plan gives you is not in that distant future, but right now - today. To know that you are set no matter what. This gives you the power to perform your getting rich quickly plan to the best of your ability without worrying about having nothing if it fails.
That is the real power of a growing rich slowly backup plan.
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Good stuff, as always, @getonthetrain. Getting rich quick would sure be nice. But getting rich slowly is a much more reliable plan. Those who are able to pursue both at the same time are certainly blessed.
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Cool, I'll check it out
Doing that is extreme. When it comes to money risks should be moderated. I someone max their debt to invest in crypto and they lose it all, they deserve it.
I think the slower wealth is built, the longer it tends to last.
But either way, we would all love to become millionaires and if it is quickly even better hahaha
Hey, in the crypto investment field 'extreme' is just another day for a lot of folks.
This is the difference between the US culture and the Finnish culture. In Finland all you hear is how people never succeed at anything and success is the outlier. Our news paper titles go like "Bob put 1000€ into a very promising business. He lost it all". Whereas in the USA newspaper articles go like "Bob put half a penny into Amazon when it was worth nothing, now he changed his name and we know him as Jeff Bezos" So basically talking bullshit to make it sound more appealing.
I think the best would be to be somewhere in the middle, where you could hear the good and the bad about wealth management. However, those who write about the stuff in the mass media, rarely know anything about it.
Ouch. I just imagine those poor people who mortgaged a house to buy in December...
It's tricky though, what you say is 100% true, yet disposable income is becoming an increasingly rare commodity these days. You can only cut back on your lifestyle so much before you hit an impassable floor, below which lies a nasty bunch of options like "losing the house".
Just because there is a limit to how much you can save doesn't mean to ignore it. I find that people should start by cutting back as much as they can as it might make them uncomfortable. When you are uncomfortable you want to change your situation, and that makes you eager to bring in more money so you can feel less bad about spending some on life's little luxuries.
This is so true. One's expenses always grow in accordance with one's income.
It is a pity that wisdom comes with age. By starting young: putting away regular savings and learning good financial discipline, you could set yourself up so much better for the future.
I took my first house loan out when I was in my early 20s. Before that, I didn't care at all about expenses, I was wild and reckless with my money. That taught me a lot about financial planning in a very short space of time, but it would have been great to know it sooner.
What really taught me how to deal with money was when my relationship ended and I lost half my stuff! Then you learn how to save and plan at a whole new level! 😂
Wow, way to go negative. I think if the only options were extreme optimism or extreme pessimism I would go with the optimism. But yeah, when you read either of these ways you need to know that it is not the only outcome.
Oh, and those guys writing the article are just working for a buck like the rest of us. And based on the average financial knowledge in America, I doubt they know too much like you said.
Thanks buddy for giving us insight on this as I know it can help many people. Patience and discipline is Key
that it is :)
Going all in on your life's dream is a good thing.
If you win, you really win.
If you lose, it will be the best money you ever blew.
Going all in on a get-rich-quick scheme is a bad thing.
You will almost always lose.
And even if you win, you will still lose.
Because you haven't built your rich mind-set.
To become rich takes a change in your mental thinking.
Once there, you will attract money into your life, even if there are bankruptcies in between.
Yes, the mindset is the most important thing to have - win or lose.
Get rich is like trading, it's not quick get rich scheme. Like trading is a slow grind, but can be very rewarding if you are consistent, persistent, discipline and love it.
and just like trading, very few will have that persistence and discipline.
@getonthetrain Nobody said it would be EASY or FAST. I like consistently saving over time and enjoying the Journey.................
One day at a time, buddy :D