How to Become Rich with No Money

Photo: KnowInsiders

Not all of us are fortunate enough to come from a rich family. However, you don’t have to be a celebrity or trust fund baby to get rich. Opinions vary when it comes down to what it really means to be considered rich. However, the thing to remember is that being rich isn’t just about the amount of money you accumulate but also includes your net worth.

If you want to reach financial success (whatever that may mean to you) one day, then you’ll have to start by forming good financial habits now. You will have to work hard, be better than average, and be willing to work outside of the norm.

Learning how to become rich won’t be easy (especially if you want to learn how to become rich overnight) – but what good things come easy anyways?

For many people, learning how to become rich may seem impossible and completely unattainable, but that’s simply not true. Remember, being rich isn’t always just having millions of dollars in the bank. Having wealth or being financially independent can come in many forms. Like I said, you may just want to work towards having zero debt.

No matter what your goal is, learning how to become rich is about having the right mindset. Achieving financial success is hard work, but starting now means you’ll be there that much sooner.

If you want to build your wealth, whatever that might mean to you, then you’re going to have to be above average when it comes to your finances. That’s because the average person struggles with money, and many are wrecked with stress and hardship due to their unfortunate financial situation.

Here are some shocking money statistics:

-68% of people live paycheck to paycheck.

-26% have no emergency savings.

-The median amount saved for retirement is less than $60,000.

-The average household has $7,283 in credit card debt.

-The average student loan debt is $32,264.

To be better than average and to learn how to become rich, you’ll have to work hard, learn how to manage your money better, and take some risks.

Just remember, being wealthy doesn’t always mean millions and millions of dollars – it’s the kind of financial happiness and success you need for your life. Keep that in mind throughout today’s post.

How to Become Rich (Even without Money)

1. Money mindset is everything

You need to have a positive money mindset when it comes to creating wealth. Everyone carries a money story and it’s your job to understand what yours is and if it’s holding you back. Reframing your story to a millionaire’s mindset is essential for success because rich people think differently. How to get rich can’t be a passing phase in your life; it takes work and commitment.

2. Millionaires still budget

Hard to believe, but it’s true. Even millionaires follow a budget. The biggest secret on how to get rich and stay rich is spending less than you bring in. There will always be wants that exceed budget limits, even for millionaires, because there is not an unlimited supply of money.

3. Money management is key

Photo: Multi-Millionaire Road

Good money management is so important to get rich and stay rich. Money management is behavior and habit. You need to be mindful of where you are investing and spending your money. There is a specific strategy to growing your wealth and maintaining it and you must follow it like you do a workout regime.

4. Invest your money for growth

Investing in assets that will appreciate over time and provide you with a return on your investment such as dividend or interest payments is smart. The goal is to build your asset portfolio and make it so strong that you can live off the passive income in your retirement.

Here are some of the easy steps you can take so that you can start investing:

1. Set aside your money specifically for investing. In order to invest your money, you need to start setting aside money specifically for it. The amount of money you save for investing is entirely up to you, but in general, the more the better.

2. Research. Before you start dumping your money into the stock market and other investments, it’s a good idea to know what you’re putting your money towards. Reading about various investment-related tips and researching each investment will help you become more informed about your investing decisions, which will then help you make better decisions well into the future.

3. Find an online brokerage or someone to manage your investments. There are two main ways to invest your money. You can either invest your money yourself through a brokerage or you can find someone to manage your investment portfolio for you. You will need to take part in one of these options to actually start investing your money. Personally, I like to do everything myself through Vanguard.

4. Determine how you will invest your money. Now that you’ve opened an investment account, you will want to decide where you will put your investments. How you invest depends on your risk tolerance, the time period for which you are investing (when will you retire?), and more. Generally, the sooner you need your funds the less risk you will take on, whereas the longer your time period is, then the more risk you may be willing to take on.

5. Track your investment portfolio. The next step when learning how to get rich by investing is to regularly track the things you have invested in. This is important because you may eventually have to change what you are invested in, put more money towards your investments, and so on.

6. Continue the steps above over and over again. To invest for years and years to come, you will want to continue the steps above over and over again. Now that you know the steps it takes to invest your money, it only gets easier.

5. Build your business around your personal financial goals

As a business owner, you have more control over the money you make versus being an employee with a set salary. If you want more money in your pockets, you can increase your revenue and your profit margins to ensure you are taking home more money. The more profits you have in your business the more you can pay yourself a dividend or bonus, depending on the legal structure of your business.

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6. Create multiple income streams

Smart business owners create more than one income stream as it protects them from fluctuations in the market. That means if one source of revenue dries up due to market conditions, other sources of income can protect you from a loss.

Granted, this is easier said than done. If you don't make enough to stash 15% of your income, it will be difficult to become a millionaire. But you do have a few options available to you, such as:

• Asking for a pay increase (if you think you're due for one)

• Working extra hours

• Getting a second job

• Getting training to increase your earnings potential

7. Don’t check out

Photo: Afam Uche

This is my most important tip. Hiring financial help such as accountants and financial advisors does not leave you with the right to check out of the financial activity in your business. Nobody will care about your money as much as you do, so never give your financial power away.

Take the time to invest in educating yourself about money management so that you can oversee what is going and understand when an investment is not doing your portfolio justice.

8. Eliminate your high-interest rate debt

If you want to learn how to get rich, then one of your goals will probably be eliminating your debt. For the average person, this probably means any high-interest debt, debt that may be giving you stress, and so on.

Paying off your debt can lessen your stress levels and allow you to have more money to put towards something else (such as retirement). Just think about how much more money you will have to put towards your goals when you stop paying high-interest fees alone.

The first step to eliminating debt is to realize why you have debt in the first place. I believe that if you don’t understand where your problem with debt stems from, then it will be hard to make a positive change.

Yes, it is great to just start attacking your debt, but you don’t want to fall into the same cycle of going into debt over and over again.

After you realize why you are in debt (or why you keep going back into debt), the next step is to figure out how you will eliminate it. There are many different ways to attack your debt, and I think you are the most successful when you do all of the following.

To pay off your debt and learn how to get rich, you should:

• Quit adding more debt to your life. You may want to cancel or freeze your credit card(s), think harder before each purchase, and avoid spending temptations like the mall.

• Be realistic with your income and spending. If you have debt, then you either have an income or a spending problem. You may need to start earning more money and/or start spending less if you want to learn how to become wealthy.

• Decrease your spending and expenses. Depending on how quickly you want to get rid of your debt, there are different things that you may want to cut out. You could cut out Starbucks (I know, I know), lower your restaurant spending, find a cheaper way to workout, sell your car for something cheaper/more affordable, cook from scratch, and so on.

• Make more money. By earning more money, you will have more money to pay off your debt, and you can usually do it even faster.

• Pay more than the minimum. If you have debt, you should always be paying more than the minimum so that you can lower the amount you are paying towards interest.

• Put little amounts toward your debt. For example, whenever you get an extra $25 (such as by selling something), then you should just throw that extra money towards your debt. You probably won’t even miss those small amounts of money.

9. Live a healthy lifestyle

Are you a couch potato who can’t resist nachos, beer and a Girl Scouts Coconut Caramel Swirl Inspired Frozen Chocolate shake from Dunkin’ Donuts?

If so, chances are you’ll never be able to afford a new couch.

Making money takes willpower and work. So does exercise and eating right. Taking care of your finances and your health goes hand-in-hand.

“Poor health habits create detrimental luck,” Corley wrote. “This is a type of luck that is a byproduct of poor habits, poor behavior, and bad decision making.”

If you’re a creature who has more than a couple of these habits, chances are you might need help getting out of debt. A nonprofit debt management program is a proven way out.

Certified counselors will work with creditors to reduce interest rates and lower your monthly payments to an affordable level. What’s more, they’ll teach you budgeting habits that will put you on the road to wealth.

They also understand being in debt is nothing to be ashamed of. Nobody is perfect, and the key is to have more good habits than bad ones.

“Adopting one rich habit,” Corley wrote, “has the effect of eliminating many poor habits.”

So, if you’re in debt, stop watching so much TV, read more, start making plans, think positively and find extra income streams.

And don’t forget to floss.

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