Two Simple Steps to Riches
Clickbait much? But really, getting rich or growing your net worth is a simple matter, but not necessarily easy.
To improve your net worth, first, you have to convert yourself into a money-making machine and second, you need to surround yourself with similar money-making machines.
Becoming a money-making machine is actually simpler than it sounds. I call it a machine because you need to lay down systems and go about building your net worth in a methodical manner. To become a money-making machine you need to:
- Generate money by exchanging your time and skills for money (i.e. job) or by identifying a need and then providing a solution (i.e. entrepreneurship). There are other ways of making money, but these are the most common.
- Assess and adjust your expenses so that they are much lesser than your income. The difference between your income and expenses is called The Gap.
- Grow The Gap by investing or starting a business. Sadly, saving your money in a bank or a piggybank will not make you rich, so you have to educate yourself on how to make your money grow.
Those are the bare-bones of transforming yourself into a money-making machine. It really cannot get any simpler than that.
Seeking like-minded individuals is also crucial to making your net worth soar.
I'm not talking about getting tips for the next hot stock to buy, but more of creating a mindset of wealth-building by surrounding yourself with people who possess the characteristics you wish to embody to become an efficient money-making machine.
If you hang around with people who take their finances seriously, you end up mirroring this behavior and before long, you'll also be more mindful with your finances. Believe it or not, growing your net worth is actually a fun activity and having people around you who also see it as such makes the journey more meaningful.
If you're the only one among your friends and family who's into personal finance, don't despair because the internet has a very active personal finance community where you're sure to find your tribe. On the local front, I suggest hopping over to Instagram and seeking out the personal finance enthusiasts (and do add me up while you're at it) and Reddit's phinvest community. You'll be amazed at how driven and generous the local PF community is in sharing their experiences and knowledge.
As a bonus, I'm sharing the third step to becoming rich. This step though is completely optional, but if you decide to take it, then it becomes your most important financial decision.
Choosing a life partner who is also a money-making machine or at the very least supports you as a money-making machine, is the third step to becoming rich.
Let's say that you have already developed the behavior needed to generate and create wealth, now imagine having someone similar to help you reach your financial goals. Talk about fast-tracking your way to wealth!
Of course, a successful relationship is not dependent on money alone, in fact I would say that money is in the bottom half of what is needed to nurture a relationship. But having someone with the same goals as you do and someone who also sees money for what it is, as a tool to buy your freedom and help you buy others' freedoms as well, is a precious thing indeed.
Here's hoping that we all reach our money goals and that when we finally reach our magic number, we find our lives infinitely richer than what our net worth states.