When presented with a magic genie that could grant them one wish, the vast majority of people would ask for the same thing, to be rich. No one wants to spend their whole life chasing money only to retire broke and have nothing to pass down to future generations. But how do people get rich?
Despite popular belief, gaining financial freedom is not down to luck. If you want to know how to get rich, you have to put in the work. No one can become rich overnight, but anyone can build wealth, no matter where you are starting from.
So, if you’re serious about learning how to get rich from nothing, don’t just read the following strategies, but start implementing them today. The sooner you get on the ladder to riches, the quicker you’ll see those seven figures in your bank account.
The Blueprint To Getting Rich
1. Become Financially Literate
What did you learn about personal finances in school? Most likely, the answer is nothing or very little. Most people never achieve financial freedom because they have no idea how to handle their money. They were never taught how to budget, pay taxes in a smart but legal way, or invest. Without knowing these things, you will never reach richness.
So, if you want to be wealthy, you first need to learn how to get rich. One hobby that all financially successful people share is reading. But they are not reading popular fiction novels. Instead, wealthy people dedicate time each day to studying from the experts. The books you’ll find on their shelves included renowned self-development books “Think And Grow Rich” and “Rich Dad, Poor Dad“. In fact, these are two fantastic books that you should read first.
Aside from reading about personal finance, you’ll find a ton of information on Youtube and through podcasts. So the information you need to learn how to get rich is out there; you just need to access it.
2. Cut Your Expenses
When you start to study personal finance, one of the first things you’ll learn is the importance of cutting your expenses. Everyone is guilty of overspending, whether that’s through impulse buying or leading an extravagant lifestyle.
To discover where you’re overspending, track your expenses for a month and two. You’ll then see how much you are spending compared to how much you are earning. If you’re spending as much as you’re making, you’ll never be able to build your savings and start investing.
So, look at where you can cut expenses and reduce costs. Now, I’m not saying you should skimp and save and thus, kill all enjoyment in your life. But look at which expenditures you could cut without feeling like you’re sacrificing anything.
3. Increase Your Income
Cutting your expenses will create more disposable income. However, when it comes to getting rich, your greatest access is your income. Therefore, to increase your wealth, you need to increase your revenue. Depending on your job, this could be in the form of a pay rise, learning a new skill to gain a promotion, or picking up new clients.
If you’re a freelancer, you can increase your rates or look for higher-paying clients. If you’re an employee, you’ll need to schedule a meeting with your boss to discuss a pay rise. If you feel that you’re entitled to more money, explain and show your manager how. If not, ask them what you need to do to move up in the company.
4. Build Your Emergency Funds
Cutting your expenses and increasing your income will allow you to put aside a significant amount of money each month. You should aim to save 10-20% of your income and transfer this money into a savings account as soon as you get paid. This savings account will serve as your emergency funds to help you financially handle any crisis that comes your way.
Having an emergency fund is so vital. For example, if you lost your job and had no savings, you would go broke immediately and would be unable to pay your rent the next month. However, suppose you have an emergency fund that contains 6-12 months of your living costs. In that case, you won’t have any anxiety or urgency to find new work as you had already prepared for a scenario like this.
An emergency fund is super beneficial as it will prevent you from having to take out a loan and go into debt, but it will not necessarily make you rich. So, aside from the percentage you put into your emergency fund each month, you should set aside another amount to invest.
Investments work best over the long term, and they are not a “get rich quick” scheme. There are some investments where you can rapidly grow your money straight away, but these come with greater risk. If you’ve never invested before, it’s best to play it safe with an investment type like mutual funds, where the interest compounds over time.
6. Set Financial Goals
The wealthiest people got rich because they set goals and followed them through. Therefore, setting goals and creating an action plan to reach them is the key to how to become rich with no money. So, to maximize the likelihood of your success, set saving goals, investing goals, and income goals. You should have 1-year goals, 3-year goals, 5-year goals, and long-term 10-year goals for each of these categories.
7. Create Multiple Sources of Income
You’re very unlikely to get rich solely from your job, no matter how well-paid it is. Wealthy people have multiple sources of income. They may have their primary job, but they also have side revenues. These could include investments (like we previously discussed), owning stocks in startups, owning and renting property, and having your own businesses.
The more financial assets you get, the more sources of income you’ll have. This will not only magnify your wealth, but it will give you so much more security, too. Eventually, you’ll have a large enough portfolio of assets that you’ll be able to stop working and live off your passive income.
8. Develop a Mindset of Abundance
While taking practical action is crucial, it’s important to remember that becoming prosperous depends on your mindset, too. Unfortunately, most people stay in a poverty mindset their entire lives. They believe they will never get rich and thus, never see wealth as they have unconsciously programmed themselves for failure.
The simple truth is, if you believe you cannot get rich, you never will. So, part of knowing how to get rich is knowing how to switch your perspective. You need to start thinking from a mindset of abundance, believing that riches are within your reach and that wealth is coming to you.
If, as a child, you were programmed to think with a poverty mindset, you will need to break that paradigm. Read “Think and Grow Rich” by Napoleon Hill and start working with affirmations and visualization to change your programming.
Some of the wealthiest people in the world started with no money. Therefore, it’s entirely possible to get rich from nothing. Don’t let your negative beliefs and fear of failure hold you back and keep you from greatness. Implement these 8 strategies on how to get rich today and start working towards a prosperous future.