How to get rich

The 2-Step Formula

‘How to get rich’ is one of the most searched topics on the internet. Most of the people think that getting rich is a big secret and only some privileged people may know this secret. But the truth is that there is no secret and making money is easier today than ever before. And if it’s easier to make money then it’s easier to get rich, too.

How to get rich – the 2-step formula

 

Step 1 – Make more money than you spend

Step 2 – Invest the difference

 

1. Make more money than what you spend

If you don’t do this, if you live paycheck to paycheck or if you spend more what you earn you will never achieve financial security.

There are 2 ways to have more money than what you spend:

1) make more money or

2) cut your expenses down so that your income is higher than your expenses.

2. Invest the difference

When you make enough money to invest then you should do it. Actually, there are many people who earn enough money to save for investment, but they are just not clever enough and instead of thinking about long-term they spend everything.

If you study the rich people you will notice that this is the basic pattern: they make more than what they spend and they invest the difference.

The really rich people make a lot more than they spend and they can do it because they invest in assets which will then create money for them, too.

Different financial advisors give you different tips about how much you should invest. Usually, they say that invest at least 10% of your income. And yes, do that if you really can’t have more. But then your main goal should be to have a much higher income so that you can invest at least 40-50% of your income or even more.

Cut down expenses or increase income?

Unfortunately, most advisors say that you should cut down your expenses, get rid of things, shorten your lifestyle, change the expensive things to cheaper things. But I think this is the wrong approach. At least for the longer term. Your goal should be to make more. Instead of cutting back everything increase your income.

The problem with cutting back is that you have a limit there. You can sell your expensive car and buy a cheaper one or use public transportation, you can cook at home instead of going out to restaurants, you can choose the cheaper version of many things in your daily life, but after a while, there is nothing more left and your life will be empty and boring and won’t be fun at all.

However, if you focus on making more money then there is no limit. As we say, the limit is the sky… or rather your mind! And again we are here: change your mindset, think as the rich.

Your one and only goal should be to make much more money than you spend so that you can invest the difference!

Secret revealed. Now you only need to find out how to make money. If you need help with that click here.

Thanks for sharing!

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How To Get Rich – The 2-Step Formula

‘How to get rich’ is one of the most searched topics on the internet. Most of the people think that getting rich is a big secret and only some privileged people may know this secret. But the truth is that there is no secret and making money is easier today than ever before. This is a fact.

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