Share the post "Becoming Wealthy for Dummies"
When most people say they want to be wealthy, what they actually mean is they want to be wealthy NOW, and they don’t want to put ANY effort into achieving it. Becoming wealthy to most people, is more of a want than a desire.
Sadly, in the real world, you don’t get what you want. You don’t get what you wish for, pray for or meditate on. You GET what you HAVE to have…… and you can have (pretty much) anything you want.
That to me is the meaning of Life. The reason we’re here. To get anything you HAVE to have.
Some may say ‘you can’t have everything you want. For instance it’s not possible for me to buy a £5 million yacht!’
Really? Well let me ask you a few questions:
- Do £5 million yachts exits?
- Do some people own those £5 million yachts?
So owning a £5 million yacht isn’t ‘impossible’, because they exist and people own them.
Believe wealth is possible to achieve
That being the case, the only difference between you and those who already own them, is knowledge. You don’t know how to get one. You don’t know what they know. If you knew what they knew, you’d have that yacht right?
And right there are the first 2 things that are required to become wealthy – the belief that it’s possible, and the knowledge of how to achieve it.
If you don’t believe it’s possible, you’re unlikely to put in sufficient effort to prove yourself wrong.
If you don’t take the time to gather the knowledge, then you’ll NEVER become wealthy.
(Later in this blog I’ll give you 3 specific ways to become wealthy, so make sure you read to the end).
There are many books and YouTube videos that will hopefully provide with the motivation you require (and you’ll need a lot of it), so I’ll leave that to others more competent than myself, and move swiftly onto the knowledge.
It’s said that knowledge is power. It’s not. Putting that knowledge to good use IS.
Do self help books work?
Many people buy self help books and watch tutorial videos in the hope of finding an easy way to become wealthy. There are books that promise to deliver to you the secrets of the millionaire mindset. Others will attempt to convince you that merely thinking about that which you desire, is enough to somehow manifest it into reality.
The success of all these books is predicated upon human laziness. The hope that everything they desire will be theirs instantly without any effort on their behalf.
It’s the same with diet books. Everyone wanting to lose weight is searching for the elusive plan that means they’ll lose that weight without have to cut calories. The fact is painfully clear; the way to lose weight is to eat less calories than you burn off.
The way to become wealthy requires very hard work and time. There’s no such thing as an overnight success or an instant millionaire.
However, if you don’t know HOW to become a millionaire, you can work 24 hours a day for an eternity and still not become wealthy. First gain the knowledge, then act upon that knowledge.
Where does that knowledge come from? Books, blogs, YouTube channels. Follow the advice of those who are already wealthy and those who are becoming wealthy.
‘But I don’t have enough money’ is a common response.
Well, you have to make more.
‘But I already work 40 hours per week’. Well, you’ll have to work longer hours.
What could I do that would make more money?
Work all the overtime you can if you’re hourly paid (I work 75 hours per week driving a cab).
If you’re salaried, consider:
- working in a bar at nights (I did my first bar shift when I was 55)
- deliver takeaways (3 nights a week will make you around £270 pw)
- matched betting
- selling on eBay
- get a vending machine round (I get 10% month interest on my sweetie vending investment).
There are dozens of ways to make extra money. How you earn your money is irrelevant. It’s how you use the money that separates the wealthy from the less well off.
You have to ensure your money is working as hard as you are.
Don’t leave cash in the bank
Leaving cash in a bank is criminal. It’s losing money. Inflation averages 3% pa, so you need at least 3% interest to maintain your saving’s buying power. With interest rates at an all time low, you’re going to have to get creative – and work hard.
I invest 70% of what I earn. My current return in my Vanguard Index Tracker is 8.5%. As said earlier, my sweetie vending round makes 10% per month or 120% pa. At 58 I’m about to start another business to run alongside my other income. Becoming wealthy requires hard work and time.
I wish I’d started when I was younger.
So let’s add some specifics. Some ‘do this, do that’ instructions.
Set yourself goals
Firstly, you need a goal. A well defined, believable goal has to be obsessed over (to the exclusion of everything else), to be achieved.
I set myself the challenge of making £300,000 in 10 years. I hope to exceed that.
Life is NOT a freaking journey. It’s is a series of easily travelled destinations on the way to a final destination. It’s only a ‘journey’ if you’re bumbling through life without a destination, at the mercy of life’s wind and tide. If this is you, then without knowing it, you’re probably part of someone else’s plan to become wealthy.
So, you need a goal. A dream. A dream with a plan. A dream without a plan is just a wish.
You then need to cost it.
Cost out your goal
I wanted to retire at 67, with £300,000 of liquidable assets. I arrived at that figure because I wanted to live in a 50’ Beneteau yacht moored in Gibraltar harbour. I budgeted £100,000 for it. The remaining cash was to fill the boat full of rum and vitals, and sail the Mediterranean as a pirate, until I wasn’t fit enough to do so.
YOUR plan will depend upon your age and where you are in the route to becoming wealthy. Some have already begun, whilst others haven’t taken their first step.
Let’s assume you haven’t started yet.
Pin this post for later!
Build Wealth for Dummies
Get rich for Dummies
Become Wealthy – for Everyone
Becoming Wealthy for Dummies
‘Get Wealthy Plan’ Examples
My first example of a ‘get wealthy plan’, requires a lot of time, a small but regular investment and little effort.
#1 Retire a Millionaire
If an 18 year old invests (in a good Index Tracker,) the equivalent of 2 hours of their weekly wage from age 18 to retirement at age 68, they’ll be a millionaire.
There you go. Simple. No real effort other than a postponement of gratification.
#2 Retire at 30
This requires some sacrifice during a time where everyone is doing the opposite of what is required. Remember, everything comes at a cost. Most people aren’t prepared to pay the price.
Firstly, don’t go to Uni. If all you want to be is wealthy, then Uni is a waste of time and an unnecessary accumulation of debt.
Second, don’t leave home. Live with your parents until you’re 30. You’ll never have fewer bills and more investable income than when you live with your parents.
Third, get 2 jobs; a day job and a second you can do in the evening. Don’t worry, you’re young and fit. You won’t miss the sleep. (I start work at 4.15 am every day in order to fit in what I need to achieve, and I’m 58).
Fourth, invest 70% of what you earn into said Index Tracker.
Punt all friends, holidays, designer clothes, weekends on the drink etc
At age 30, your investment will kick out enough income to pay for a deposit on a house and cover all household bills.
You can at this point give up work, but I would recommend you instead did something you were passionate about, as you no longer have to work for the money.
#3 The Easiest Way In The World To Become Wealthy
What I’m about to explain, is the most underestimated way anyone can become wealthy.
It’s a method I almost executed, but didn’t realise its value at the time and failed to follow through.
Here it is; at age 18, you find a company whose ethics align with your own, whose business has longevity, who provide employment in a role you enjoy and has a good company pension scheme (any Government occupation would fit this description).
You then work there all your life, rising through the ranks, increasing your pay as you go.
After 40 years you can retire on half pay. With your mortgage paid up, you will be financially independent.
I served 12 years in the Royal Navy. The closer I get to retirement the more I wish I’d done 22 years.
2 other things you should do; as your first house, but the biggest you can afford, repay the mortgage diligently and never remortgage. This will ensure it’s repaid after 25 years and you can live in it mortgage free.
The other thing to do, is pick a partner who shares your vision. A divorce may half your wealth.
There you go. 3 ways to become wealthy/financially independent, anyone can achieve.
Time is essential. Hard work isn’t, depending on the route you choose.
To follow my own progress, visit me over at stupidisthenorm
and sign up to any or all the media platforms there.
Wishing you good luck
Thanks Perry for your ideas on how we can all become wealthy. I am already inspired with new ideas on what I can do to really make this happen.
Here are other posts of Perry’s that I think you will find super-useful: