Do You Want To Become Rich? Try These Steps

If you want to be rich and if you seek advice from others, you will be told that you you should earn more, must spend less than what you earn and save money. But you may say that this is difficult because the question of increasing your income is ruled out. You will continue in the same vein and add that cutting on your expenses may also be a tall order, thanks to the relentless rise in the prices of all the commodities. It is in this context you are advised to use the following tips. They are certainly worth the effort.

1. Push yourself and try to exceed your normal capabilities

You may like to lead a comfortable life and may not like put in a lot of hard work. But this mentality will not make you rich. Only if you are prepared to push yourself and exceed your normal capabilities and only if you are ready to face uncertainties, you can taste success. Experts advise that you must do at least five uncomfortable things daily. This will help you in building your physical and mental endurance. Once you get the mental fortitude required for making difficult decisions and implementing them, you can easily make your life extraordinary.

2. Lead a modest life

Keep a close watch on how you spend your money. It is not necessary that you should be stingy and miserly. You must spend wherever it is necessary but should invariably avoid unnecessary expenses. Remember that a huge income alone cannot make you rich if you do not cut on your expenses. If you do not try to lead a modest life, you may not know where your money goes.

As Adam Toren, who founded Young Entrepreneur and Biz Warriors, says, “A frugal mindset focuses on what you need, not just on what you want or what you think will make you happy.” When you try to lead a modest lifestyle, you will avoid impulsive buying. In fact, your outlook towards consumerism will itself undergo a phenomenal change. So, you will tend to go to the stores with a list, look online for offers and deals and opt for used items instead of new ones.

3. Keep a close a watch on where your money goes

This is for cutting back on excesses. Experts advise that if you record all the expenses you make, you can know where your money goes. This will help you in cutting back on unnecessary expenses. For example, some people buy newspapers or magazines but they never read them. There are others who pay for channels that they never want to see. If you are also paying for such a package, you can switch to a provider who offers a la carte feature.

4. Keep acquiring new skills

Several new innovations and developments keep taking place in every field and industry and the field in which you operate may not be an exception. If you do not keep abreast of them, you will become stagnant. Not only that, new entrants in the field will relegate you to the back. You should therefore keep acquiring new skills that can appropriately help you in discharging your duties more efficiently. For example, if you are a law graduate and possess IT skills also, you can think of taking a plunge in cyber-crime or cyber-fraud related tasks.

Similarly, you can polish your current skills so as to come out with solutions for some of the existing problems in your field. In fact, it is such innovative minded folks who are coming out with new applications and solutions that are making the life of people easier. 

Josh Kaufman, who has authored the book "The First 20 Hours: How to Learn Anything … Fast!", says quick learning of a new skill is possible if you split the process into three steps. The first step is deconstructing the skill, the second is self-correcting, the next is removing the barriers that may prevent you from learning and the last is practicing for a minimum of 20 hours. 

5. Take up an extra job

No one can say that they are busy all the 24 hours of the day. This means once you are back home from work, you will either be couch potato or a mouse potato. Simply put, you will be watching the television or squandering your time by adding or reading unwanted posts on Facebook, Whatsapp, Twitter and so on. This is not to say that watching television and browsing the Internet are bad. They are certainly useful if you learn from them. But if you get addicted to them, your dream of becoming rich will never fructify. That is the reason you are advised to explore the possibilities of taking up an additional job instead of wasting time on watching television or on social networking sites.

6. Let your savings work for you

The general rule is you must save 20% of your income and park the money in an appropriate investment account. Even Albert Einstein, one of the greatest scientists who walked on this planet, said "Compoundinterest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it." If you regularly save 20% of your income month after month, you are certain to become a millionaire soon. If you start early in your career, you will be a multi-millionaire at the time of your retirement.

7. Make it a point to pay only cash for all your purchases

Studies reveal that people will spend less if they pay cash for all their purchases. On the other hand, if you pay through credit cards, you may be tempted to buy unnecessary items. Not only that, if you decide to pay cash for all your purchases, you will stop buying once your wallet becomes empty. You have to go all the way to the ATM for withdrawing money and you may be reluctant to do so.