Why become wealthy?
It is useful to acquire adequate money because money gives you choices and options.
What are the keys to becoming wealthy?
I am sure that many people would say that the key to becoming wealth was to learn to be a good investor.
And sure this can help, but it is far from the whole story. I would argue that the keys to becoming wealth are as follows:-
- First and most important, you must decide that you want to become wealthy.
Most people do not become wealthy by accident.
- Second, you must decide that being wealthy is a very high priority in your life.
Becoming wealthy must be one of your very top priorities.
- Being wealthy, needs to be part of all major decisions you make in your life.
Those are the keys. After that, I am sure that there are many variants, but some things that can help are:-
- Be clear about what is not important. Do not spend money on these things.
- Spend less than you earn. Learn to save, and make it a regular habit.
- It is important that you always have some funds in reserve “for a rainy day”.
- Mix with people who also wish to become wealthy.
You can learn from each other and can be a useful support network for each other.
- Do not borrow to consume. A lot of people fail this test.
- Looking for ways to increase you income can help, such as:-
- learning skills that can help you to earn more money, from your labour,
- starting your own business, or
- learning how to become a good investor.
However, you also need to recognise that learning to be a good investor is a life-long journey.
You will never know it all.
- Do not pay any more tax than you need to.
This includes learning to use the superannuation system to your advantage.
- Control the things you can control. Give yourself a buffer to help you survive the things you cannot control.
Remember that most people have a choice between being wealthy and looking as if they are wealthy. Which do you choose?