Let's Become Wealthy

Let’s beat the middle-class crises together and see how we can become wealthy. Being wealthy is not the same as being rich. If you spend all your incomes, you’re only living rich, not getting wealthier.

I  am writing this from purely what I have seen practically, my little research on managing corporate finances and my extreme urge to secure myself financially.

Now are there are two ways of how people can interpret the purpose of the article. If your motive is to make surplus cash to spend money on good-life, that is portraying yourself rich, then you won’t probably make it. On the other side, if your goal is becoming financially secure, you are likely to attain it.

NOTE: This article is written with an assumption that its readers belong to the working-class.

Spending habits play an important role in transforming your typical financial state into an exceptional one and that will be the topic in the limelight.

One quality wealthy people possess is, whatever their income is, they always live below their means. Because success is not defined by what speed-cars you own, how costly is your watch is or how huge your mansion is, but it is defined by what you have achieved in your life. Take for example Avul Pakir Jainulabdeen Abdul Kalam. How much wealth did he possess? I am sure you have read about his life and the kind of simplicity he maintained. The point here is, you don’t need to have all the fancy items that are up for sale in the market.

That simple guy living across the street who drives a Corolla and wears a Titan watch might be a millionaire, which you are oblivion of. You’d think he cannot be a millionaire. He doesn’t look like a millionaire and neither he dresses like one. Yes, because he lives well below his means. And that is the SECRET of his accumulated wealth (It is not always the liquidity of cash. It can be properties, assets, stocks market investments etc.). We always hear people say that people who look rich aren’t rich and people who look ordinary have a hefty bank balance. Didn’t hear that? I did. And as a matter of fact, that is true. Millionaires to stay as millionaires (or to become billionaires) manage their finances well and also analyze their spending habits closely. 

“Wealth is more often the result of a lifestyle of hard work, perseverance, planning, and, most of all, self-discipline.” ― Thomas J. Stanley

Let me give you an observation task,

Next time you are out at a jogger’s park, notice those people who you see jogging day after day. They are the ones who seem not to need to jog. But that's why they are fit. Those who are wealthy work at staying financially fit. But those who are not financially fit do little to change their status.

Everyone wants to be in good shape. And most of them know what it takes to achieve this. But despite that knowledge, most people never become fit physically. Why not? Because they don't have the discipline to just do it. They don't budget their time to just do it.

Similarly, is the case in becoming wealthy. Oh, you want to! All right, but you play lousy financial defense. You don't have the discipline to control your spending. You will never grow your wealth because you keep buying items that are not your need and to add on, it depreciates in value over time. “If you buy things you don’t need, soon you will have to sell things you need.” – Warren Buffet.

Happiness quotient is higher for people who are financially secured by comparing the same with people who own a Ferrari.

I know a man, who from being poor went on to become one of the most successful person in his community. Successful both in terms of managing his finances and achieving a status in life. How? He saved from an early age.  He worked 18 hours a day to accumulate his wealth. Now, today he is in a position that if he stopped working, he has enough for his 4 generations to come. But he still goes to work. Only this time, he doesn’t work for 18 hours day. What good is the wealth when you can’t have your leisure time?

There are two basic and important things you need to when you first start earning and before spending on your ‘good-living. First, you need to buy a house. You will at least have a roof above your head when the wind is blowing in the opposite direction. And second, invest your money which can yield you an amount which will suffice to keep your stove lit in the kitchen. For example, an investment in commercial property. And now you can spend tactfully after saving for your next big investment. Operate and manage your finances like a professional business.

“Don’t save what is left after spending but spend what Is left after saving.”– Warren Buffet.

Before concluding, here is one tip which I believe works every time and for everyone including who is super wealthy out there. Giving it back, helping the one in need. This is the rule of nature that your wealth doesn’t deplete when you help, instead increases many folds along with a sense of happiness and satisfaction. Don’t believe me? Google tips on becoming wealthy by wealthy people and you will find this is in Do’s and Don’ts.

A couple of good books have been written on this topic. I highly recommend to read them so as to get a bigger picture of what message this article wants to convey.

• ·       The Millionaire Next Door by Thomas J. Stanley - https://bit.ly/2DFur7a
• ·       Think and Grow Rich by Napoleon Hill - https://bit.ly/2EVEysB

Thanks for reading and see you on the Island of excellence in the sea of mediocrity.