Become Rich With Good, Honest, Hard Work to Start
Become rich, seems impossible. But when you consider the real definition, it is possible. Becoming rich defined as having all that you need and much of what you don’t. A surprising number of people don’t have most of what they need, and many who do, have very little excess or live paycheck to paycheck. Becoming rich, begins with hard work and ends with saving money.
Most folks will swear they work hard, including young folks. But, when questioned about researching the best jobs, working enough hours to get promoted, and constantly improving themselves with training and education, they admit being negligent.
The earlier you start working hard, the more likely you are to achieve financial success and end up with a job you like.
Also, you will have more time to save and accomplish your long-term goals when it comes to paying bills, general savings, and retirement savings. When you are young you have better health and more energy, and time to accomplish life long goals.
Don’t Over Invest in Education
In today’s educational climate, you can spend $10,000 living at home with no student loans, or $200,000 going away to college, with huge student loans, for the same degree that will get you the same job as the $10,000 degree. If you have rich parents who don’t mind paying the larger bill that is fine. But, to take out student loans on the larger college cost makes no financial sense at all, not to mention the emotional toll it will take on you trying to make those huge student loan payments for the next 25 years.
Those large student loan payments are amortized like a mortgage, which makes it even harder since the loan is paid over such a long period of time. Do your research, know the total cost of all colleges you are considering. List several colleges you or your child is interested in and include the cost of tuition, books, room and board, and then add 5% for hidden cost.
The more expensive the college is, the more loans you or your child will have to take out. Choose from the affordable colleges. Financial aid only covers about 80% of costs for the poorest students, so no matter what your financial level, you will always need to come up with some out of pocket money. The exception is if you are covered by a full scholarship, but these are rare.
Once you get a marketable degree, concentrate on getting a job after your training, instead of more degrees. Some people get multiple degrees, and deep in debt, only to find out the first college degree was perfectly adequate. Many who make the mistake of choosing a college with too much student loan debt find that to become rich they must first figure out how to get out of their student loan trap, paying down the debt.
Research Everything, Before You Buy
We were taught to do research in college, remember all of those late night college research papers, but now many of you do what I call the anti-research. The anti-research is when you approach sales people and ask them what you should buy. It is mysteriously the most overstocked item on the shelf since they need to make room for new stock. The most overstocked item may be such, due to high returns or bad reviews also.
Do your research about everything, especially big-ticket items such as cars, homes, home building, mortgages, colleges, and investment companies. I mention investment companies because of Bernie Madoff of Madoff Investments. Madoff was not a registered Investment Broker most of the time he was in business, but none of his victims checked at finra.org.
You can start your checking by calling the company you are interested in and asking a lot of questions, try to get a list of 10 questions, then search government websites to find information on the industry or company in question, check independent consumer sites for reviews, and last ask those who have used the company or services you are considering.
It is hard to get the truth about some companies because there is so much false information in circulation, but if you do your research you can be reasonably sure you will get most of the truth. Some buyers make purchases based on a “free-gift seminar”, buying anything based on a free gift is what I call high-risk buying. I call it high-risk because it is usually something you don’t need and the gift is charged back to you with your purchase, some buyers even sign long term loan commitments based on the seminar gift and presentation, only to regret it later.
Live Below Your Means
This sounds like it is good old fashion common sense, but one of the biggest reasons for foreclosures and bankruptcies is because many people believe in living above their means, until they realize the dangers. Living below your means, means you must use a budget planner to maintain a sustainable budget.
Living below your means, means that you will have a much greater chance of keeping your home or car if you get laid off your job or have to take a pay cut in some way. It also means you will have money freed up to save for important things, such as home maintenance, car repairs and
Make Savings A Bill
You know what happens when you get a bill, you do everything you can to pay that bill, no matter what. Some bills are on automatic deduct, which makes them really easy to pay since you don’t even have to write a check. Do the same with savings, it is easy when you make it an auto deduct bill. Savings should include; emergency savings, extra to retirement savings, college savings, and vacation savings.
A habit that makes us poor is, every time we need money for these things, we borrow the money by charging them on high interest credit cards. The lowest credit card payment is amortized over a 20 year period. Sometimes it is necessary to use a credit card, like securing a hotel room, renting a car, or getting credit card points—just keep it within an affordable range, and use them sparingly. Make more than the minimum payment to get the balance paid off quickly.
When you have substantial savings based on monthly additions to a few accounts, emergency, basic needs, vacation and retirement you will see yourself on the road to become rich beyond your wildest dreams.