How Easy Is It To Get Rich?

Spending twelve years in school and another two to four years getting a high degree is not a complete guarantee that you will get rich easily. There are some things and steps that you must do first before you can achieve success in your life. However, in spite of spending many years in school, lots of people aren’t aware of this.

Get a Job

It is not a big secret. You have to start somewhere for you to have a cash flow.

Pay Off High Interest Debts

It means your credit cards. Settling debts with high interest like 17 percent is like making investments with 17 percent return. One of the mistakes that people make is paying only the required minimum amount for credit cards. It’s actually the trick of the banks to keep people pay forever. Just take a look at credit card bills and see how much you have been paying in interest. It is a bit shocking once you calculate how much it adds up.

Save at Least 10 Percent of Your Monthly Income

After you are done with your credit card debts, you may start saving. Some people do not save because they think that since they do not earn much, they will not have something to put aside. That is not always the case. In reality, if you earn more, you actually spend more. Therefore, as a remedy, you should make it a habit to pay yourself first. Then, put aside at least 10 percent of your income before paying anything.

Make a Nest Egg

Your savings must be geared towards making a safety net for yourself. Calculating your expenses monthly and making it your goal to save three to six times that amount can make a huge difference. Through this, if you can’t work for some reasons, you can still have money to spend without going into debts.

Invest

If you can create your nest egg, you should continue saving 10 percent of your income. You can put this money in diversified Index Funds portfolio rather than a savings account. Index Funds are basically investment products, which include a big amount of bonds and stocks that spread your money across the market. With this, if a company goes down, you will have some bonds to depend on. You will not need to worry about losing your money with wrong decisions.

Index Funds are preferred than savings account since ROI is higher. Savings account could provide you a return of as low as 1 percent while Index Funds may provide you a minimum of 5 percent or closer to 20 percent sometimes. Just pick a well-known company to take care of everything for you.

You can also consider opening your own business. However, you cannot be sure that your business will succeed. But, there is nothing you should worry about if you are always dedicated and put more effort in all of your actions.

Being rich is easy. You just have to combine it with dedication and time. Also, keep those things in mind.