Being rich and making money is everybody’s dream.
You want to afford things and live a life with freedom. That’s what money is all about — freedom. The fancy cars, big houses, and other material things will be boring after a while. But what remains is the ability to do what you want, when you want.
Money is a sensitive topic because everybody has a different perspective on it. Some need money for basic survival and to afford necessities like food and rent. Others see money as a tool to achieve their dreams of starting a business or investing in assets. Whether you already have money or want money, one thing is sure: You always need more.
In his recent interview, Jim Carrey said he is retiring and added, “I have enough. I’ve done enough. I am enough.”
That’s rare.
Money won’t make you happy, but:
Money can buy you everything, but what about your emotional well-being? We’ve heard wealthy people being depressed and mentally unstable. If money made them happy, why would such things happen to them? Maybe I’ll be able to answer this question when I become super wealthy.
Money will solve most of your problems. You can gain control of your time. You will become powerful because you will have the power of choice, the power to own your time, be respected, and live your wildest dreams.
Money isn’t everything, but it is a necessity.
Money might not buy you happiness. But not having money surely won’t.
I’ve read many books and articles, listened to podcasts, and consumed other financial content. They have given me immense knowledge on how to make money and become financially free. Summing up all the money advice I’ve learned, below are the only four things that will actually make you wealthy.
1. Ownership and investment
All wealthy people either own a business or invest in someone else’s. Nobody becomes rich by “saving” money; they invest in income-generating assets.
The income from your day job won’t make you rich. By the time you save your way to riches, you will be in your 50s or 60s. Becoming wealthy is not just about accumulating a lot of money. It is also about being able to use that money while you can. What’s the point of making a million dollars in your 60s? You won’t have time to enjoy that wealth to its full potential.
Therefore, one should begin investing in businesses and assets as early as possible. Warren Buffett, the G.O.A.T. of investing and finance, bought his first stock when he was 11. No wonder how he became so wealthy by investing in companies throughout his life. When it comes to investing, the earlier you start, the more advantage you have. Read that again.
Get into the habit of investing some of your income in assets like stocks, real estate, crypto, bonds, hedge funds, and commodities. You don’t need big money to start investing. You can begin small with whatever you can.
Collect assets and keep expenses low. Stop spending on unnecessary stuff. I always follow one rule when spending money (especially on luxuries):
Spend money you received from investment rerturns instead of your income.
You can also start a business and own its equity. Your company can be a sole proprietor or partnership. In other words, you can either own 100% of it (which might require a large capital) or only a part of it. Whichever option you choose, ensure that your business generates cash flow.
2. A valuable skill
Getting rich is about having the skills to become worthy of financial gain. Every wealthy person has some unique skill.
- Warren Buffett is a master in financial analysis and studying companies.
- Bill Gates and Mark Zuckerberg had skills in software development.
- Steve Jobs knew how to sell and market his product.
- Elon Musk is a genius in technology and engineering.
Learn a highly demanded skill in the market. It doesn’t have to be technical. For instance, knowing how to sell or negotiate is also a skill. Effective communication and networking are crucial for becoming wealthy.
You must practice that skill repeatedly to become a master at it. Then, your value will rise, and people will pay you handsomely for your skills.
Further, you can also use your expertise to create your own products and start a business. The more skillful you become, the more money you can make.
3. Building products or services
Having your own product or service you can sell to others is a straightforward way to become financially successful.
When you start a business, you own equity. But you also make money from your products and services. Later, when you scale your business, you can become super wealthy.
Take Jeff Bezos, for example. He started Amazon to sell books online. He saw a market for selling products online, so he scaled his business with more products and reached more people. Once the company got big, so did its market value. Bezos became a billionaire by selling products online and scaling them to a larger market.
The focus word here is “scaling.” Anyone can start a business and sell products/services, but only a few become wealthy. That’s because they never scale their business to reach more customers.
In his viral tweet, How to Get Rich (without getting lucky), Naval Ravikant says,
You will get rich by giving society what it wants but does not yet know how to get. At scale.
Whether you are starting an e-commerce or an online agency, you need to find a way to build quality products and sell them at scale.
4. The right mindset
Saving money, investing, cutting out expenses, and budgeting are all excellent financial habits. But they aren’t enough to build real wealth.
If your mindset is not correct, you will never become wealthy. Even if you win the lottery and become a millionaire overnight, you will lose your money.
Wealthy people have the right skills, for sure. But they also have the right mindset. They think differently than ordinary people. Their external success is the outcome of their internal mindset.
So, what is the right mindset to become wealthy?
Often, people think of lack.
- I don’t have enough money.
- I will be happy when I have a million dollars.
- I am saving for my new car.
All these statements show that you are thinking in terms of lack. You need first to change your mindset from lack to abundance. For that, you must have self-belief that you can do it. I can become rich. Ordinary people only dream of having a million dollars in their bank accounts. But they don’t believe they can actually have it. That is because they have been living with a “lack” mindset.
Often, people also hear statements like:
- Money is the root of all evil.
- Money doesn’t grow on trees.
- We can’t afford it.
No matter what your mindset has been about money, it can change. It has to change if you want to become rich. Take a look at this picture that sums up the difference between a broke mindset and a rich mindset:
It might take some time to step out of your comfort zone and change your mindset. But, if you genuinely want to be wealthy and seek change, you must work on your mindset more than anything else.
