Wednesday, January 7, 2015

Issue 500 Getting Rich January 7, 2015

Well now, getting rich is something we all want to do right?  We want to be financially secure so that we can spend on the things we want or on those most important to us.  So here I would like to present some tips on how to become rich in an increasingly expensive world.

Tips:

1) Avoid spending money:  One of the basic misconceptions about being rich is that you have to spend money to get rich in the first place.  This is a misconception.  The primary way to accumulating money is by avoiding having to spend it.  So when given the choice between an expensive new car, and a used one, you would choose the used one.  If you can use a coupon to save money at the grocery store, then use it because you are able to keep the money you earned in your pocket.

2) The right investments:  There will be times when you must spend money in order to accumulate more wealth.  This is only for when making an investment into something that will increase your wealth later on.  One such investment is life insurance.  This insurance will protect you and your family from possible problems such as deaths and unforeseen life events.  Stocks and bonds are another form of good investment if you know which to buy (do your research on these please).  These long term choices on what to spend will dictate if you have to keep working until you're 70 years old or can retire early.

3) Healthy living:  Another important way of keeping you from having to spend money is to live in a healthy way.  Basically, eat right, exercise and avoid getting sick.  With the right maintenance to your body you will be able to avoid having to spend on healthcare and thus insure you can spend money on other priorities in your life.

4) Buying Choices:  Do you really need the $100 bag when they have another for $10?  Do you need that limited edition action figure?  Should you spend $20 on that new tattoo or invest it in next week's grocery bill?  Should you buy the pizza, or that box of spaghetti which will feed you for an entire week?  These are all examples of buying choices.  Similar to tip number one, but in this we are deciding what the better investment of our money is in the first place.


Conclusion:  Getting rich quick is the least likely way to achieve becoming rich.  In fact, becoming rich is all about making the hard choices from now and until your death.  No, it is not easy to become rich, and it is a lot of work (I'm still working on it myself), but in the end it is better to make these choices that leave you in a better position financially today than the day before.

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