How to get rich quick… Everybody would like to get rich quick!
I don’t even count the times I thought I had the idea of the century and that I would become insanely rich only to discover that a million other people have had the idea I did have and had already created the super app I thought I’d be the first one to create!
Medias are filled with stories of people who apparently became rich quick like the guys from Google or the creator of Minecraft!
People then tend to believe that becoming rich quickly is easy. But, they just don’t know the story behind. In fact, most of these people built their own success by working hard, failing again and again, keep working harder and harder because they had a vision and they knew somehow that their vision was great!
I have a vision too. And I work hard to make it come true. I’m not going to change the world and my plan is not related to creating an app or a new gadget. In fact, I will get rich quick with something else that you too could do! How quick? Well a lot quicker than most people I know.
It will take me at least 12 years to get rich, but I will succeed. Is 12 years fast enough?
I know, you’d like someone to tell you how to become rich within a week or a month, but trust me, it won’t happen. But, becoming rich within 10-15 years is achievable if you are dedicated to it.
How rich? Well, rich enough to never need to work again if you wish!
Here’s how :
Spend less than you earn
We live in a society based on consumerism. Spending and even over-spending has become a normal behavior nowadays. I have a good salary and even though I do, I used to spend more than I earned! It’s weird because not so long ago I was able to live with 30k per year. My salary has tripled since then and my spending just followed naturally…
Best kept secret of rich people
To become rich, the first thing we have to do is to spend less then we earn. I know there’s no magic trick here and it’s pretty obvious but this is the most important secret to wealth. The more you’ll be able to save the more you’ll get rich quickly.
I do my best to save 40% of my net salary on every paycheck. It’s not easy… trust me! But there’s always room to cut expenses. Some folks out there have been able to retire after five years of aggressive saving habits. They saved up to 85% of their net paychecks!!! They are Jedis! 😉
Your savings will give you the lever you need to seize opportunities.
Pay off your debts
Now that we have excess capital we can use it with intelligence.
Someone said that being debt-free is already being rich. I couldn’t agree more! One of the first thing I did when I set my plan to reach financial freedom was to find ways to clear my debt burden as soon as possible.
Use the snowball technique
I used the snowball technique and made a list of all my loans, credit cards and other debts and I started by the one with the lowest balance. I made only the minimal payments on other debts I had and focused on reimbursing that account at the speed of light with all my available resources. Why? Simply because it motivated me to see some accounts being shut down! You know… the freaking big screen TV that you have decided to pay in 50 instalments of 25$ per month?! I brought it to zero in two weeks! And then I paid the mattress and then the spa that I had bought in 2010 and that I was still paying over a 10 years term (stupid me!). And then I put my credit card in a ziploc bag and froze it in a block of ice to make sure I wouldn’t use it anymore (the things you have to do to learn to control yourself…).
Sell your clutter to accelerate things out…
To accelerate the process, I sold used stuff I had, an extra oven, an extra set of furniture for a bedroom and so on… and used all that extra money to make bigger payments on my debts.
Now that I got rid of most of my debts I can focus on paying the two only debts one person should have – a mortgage – a car loan. Both of these debts are related to an asset that I could sell to end up debt free.
Get rid of your mortgage-cage
I have set a plan to bring my mortgage balance to zero in a matter of 7 years! A lot can happen within 7 years. But if all goes as planned I’ll be mortgage free by 2020! This is already going to be freedom.
For sure, once debts are paid off one should make sure not to get new debts for stupid things like buying a trip to Mexico and paying it per month… Furniture, restaurants, clothes, food, trips and activities should be bought with available cash like our grand-parents used to do. You have the cash? Now you can decide to buy the item! You don’t have the cash… well don’t buy it! It’s that simple!
Cash-flow is the key to riches
I chose to invest in dividend growth stocks and in less than a year, I was able to create a stream of reoccurring passive income of 100$ per month on average! This income will grow by itself every year and be paid to me every year until I sell my assets. Why would I sell such assets anyway?
I like investing in the stock market. For me, it’s like playing Monopoly but with real cash! Some prefer to invest in real estate or to buy a real brick-and-mortar business. I might try my hand at it some day but for now dividend growth investing suits me well!
The most important thing to retain is that the extra cash should be invested in assets that will generate income and even better, growing income! This is the Saint-Graal of capitalism! Pure passive income! You can get it from dividend growth stocks, businesses, intellectual properties, rental apartment, patents, apps that you have created, ebooks that you wrote, songs that you have recorded…
This plan is simple yet powerful. Avoiding debts and refunding those that we already have can put us in a very good financial position. Spending less than we earn can provide excess capital that we can put to work. The more excess capital I’ll be able to put to work as fast as possible, the faster I’ll be able to retire.
The world is against you
While simple, this plan is not easy. It involves being disciplined and developing a lot of self-control. All the society is against these behaviors. Colleagues will find you weird. Friends might tell you that you’re cheap. You’re wife might cry and even leave you if she does not understand your plan…
While I see it as a true get-rich quick strategy, results are not going to come fast but every brick will pile over the previous one and all of this will compound until a great monument is built! We all started with a small 5$ check deposited in our account after two or three months of hard work. It seemed very small at first sight… but now I get many of those checks every month and it’s consistently growing!
Time is a finite resource worth more than 20 bucks an hour…
So, if you decide to jump in you’ll need a motivation. Mine comes from the understanding that time and freedom are our most valuable assets. We sell our time at a fix rate per hour but we don’t know how much time we have left on this planet. Would you work full-time for 20 bucks an hour if you knew you would die in 3 weeks? Probably not… The problem here is that you don’t know when you’ll die so you don’t know what your time is worth…
I want to own my time and freedom as soon as possible so I can follow my own will and use it at my own discretion. For me, exchanging all my life for three weeks of vacation per year is just a total non-sense. Why would a company have more rights over my time than I do?
What about you? Do you have a plan to get rich quick?
Image courtesy of Sdmania & Sujin Jetkasettakorn / from FreeDigitalPhotos.net