Can You Really Get Rich Fast? If Yes, Then How?
Yesterday I was listening to a podcast with T. Harv Eker on addicted2success.com. He said something that I already knew that was true, but listening to the same thing from a multi-millionaire just reinforced my belief.
Here it is
The easiest, best, fastest and most effective way to make money and eventually become rich is to INVEST IN YOURSELF.
You should work to build You Inc.
What does this mean?
That the best way to get rich fast is by investing in: your health – mental and physical – knowledge, skill acquisition, habits, character and mindset.
Improve all these aspects of your life and you will probably become rich after some years.
Why do I say after some years?
Because getting rich doesn’t happen overnight. It takes time to nurture your knowledge, apply it and start making loads of cash.
Getting actually rich, which means having some millions of dollars – not just making 200k per year – will take its time.
Honestly, I can’t tell you what it really takes to be rich because I am not. I don’t make one million dollars per year.
I can tell you how to go from being broke to living comfortably which is something I have done.
And I did it by applying the same idea that T.Harv Eker said that helped him become rich.
There are two reasons I called this post “how to get rich fast”.
First of all, by getting rich fast I mean something like 4-8 years. That’s the least amount of time someone needs to become financially independent.
This is really fast compared to the silly “get rich slow” approach of working at a cog job for 30 years while saving for retirement. They say that if you do that, you can live comfortably when you are retired at 65.
But you will have missed the rest of your life working at a cog job! What’s the point of being rich at 65?
The point is to be rich or financially secure when you are in your 20’s or 30’s. (You should set yourself up for success earlier)
Becoming rich in 4-8 years is incredibly faster than becoming rich at 65. And that’s why I called this “how to get rich fast”.
As for the millionaire’s formula part of the title, it’s referring to Harv Eker’s advice that I listened on the podcast.
T. Harv Eker said that he tried 12 different business ventures but none of them succeeded.
He was broke for many years. So broke that he had to choose between putting gasoline to his car or eating dinner.
Even if he had tried the best business opportunities, nothing worked for him.
One day, one of his friends told him about a new business venture. His friend has started making 20.000$ per month almost immediately and persuaded him to try it.
After 6 months, his friend was a multi-millionaire. On the other hand, Harv was broke to the bone.
After a while, he realized what he did wrong. It wasn’t the vehicle that didn’t work properly. But the driver wasn’t good enough.
And I believe he is damn right.
What’s the point of driving a Ferrari if you don’t know how to handle it? Even if you have one of the fastest cars in the world you might not be able to reach the finish line unless you are a skilled driver.
The same happens in life.
Harv Eker said that once he started to improve himself, he became a multi-millionaire in just 2 years. And it all happened when he started changing his mindset, habits and improve his character and health.
As soon as he started investing in himself – his success skyrocketed. And that’s how he became a millionaire.
From my experience, I have seen that working on my life during the last year.
One year before, I was completely broke, my parents were covering my living expenses and I would accept my girlfriend to pay for my drink when we were going out.
After less than a year of working on myself, my life has completely changed. I strongly believe that working on yourself is one of the best ways to go from point A to point B successfully.
From broke to financially secure. And from financially secure to rich.
Now let’s get into the practical part of the article.
- 2 Essential Belief Changes You Need To Make To Get Rich Fast
- How To Invest In Yourself To Get Rich Fast
- Where You Should Spend Your Money And Were Not – The 90-10 Rule.
Let’s dive into it:
Belief Change No1: You Can’t Become Rich Slowly
This will never, ever happen. That’s the common approach I talked about before. Work your butt off when you are young and live comfortably when you are retired at 65.
While I believe you should really work your butt off when you are young, it all comes down to the end goal.
Your end goal should be to live comfortably from when you are in your 20’s or 30’s – not only in your 60’s. This gives you an extra 30-40 years of an awesome life.
Why wait till 65 when you can have it when you are 35?
Of course, you can’t do this if you do the same things that everybody is doing. If you want to live differently, then you will have to do things that the rest are not eager to do.
Like taking the risk of going self-employed.
Like stopping to spend money on material objects like houses, cars and other stuff only to impress people.
And this brings us to our main point:
Invest In Yourself And Build Your You Inc
Here is a rule for your 20’s and 30’s.
Spend 90% of your money on yourself, and 10% of your money on stuff.
Let’s see where you should spend your money and where not:
Approved Spendings – 90%:
1.Nutrition: Eating healthy food, juicing and filling your body with all essential nutrients.
2.Exercising: you can spend all the money you want to get in shape.
3.Travelling: to acquire experiences and broaden your thinking horizons.
4.Business: you should spend money to make more money. If you spend 30k per year on advertising expenses but make 80k, then you should keep doing it.
5. Knowledge & Skill Acquisition: Paying for different kind of courses, classes or things that help you become a better person. Let it be books, online courses, guitar classes or whatever you want.
6. Health: Medical check-ups, visits to doctors, skin care products, hair loss treatments etc.
Non Approved Spendings – 10%:
1. All Material Stuff: like fancy clothing, cars, houses, jewelry, gadgets, phones, furniture, home decor, TV’s etc.
Nothing of that stuff makes you a better person. None of them is an investment in yourself.
The reason I say you should spend 10% on them is because some of them will be practically useful.
For example, you need clothes to wear, a phone to communicate, a bed to sleep on and a car to move around the city you live.
You just have to spend the least amount of money – or just 10% – to buy that stuff. If they fulfill all your practical daily needs, then you should spend no extra dime on them.
A) I have a phone of 100$.
It can make calls, play music, capture decent photos and browse the internet without being slower than a tortoise.
Why spend 700$ on the new iPhone just for some more features and the brand name? That extra 600$ won’t add any significant value in my life.
The only furniture I own is a fridge, a book shelf and a washing machine. When I was looking for a house to rent I searched for one that already had the most essentials so I wouldn’t have to pay 3000$ to buy new furniture.
I know dozens of college students who have spent 3000$ + to buy furniture for their student houses. With daddy’s money of course. Entitlement at its worst.
Each year, I like shopping during the sales period. I spend about 150-200$ – twice per year. But this lets me build a full wardrobe for both summer and winter.
I buy clothes for H&M and online stores such as Asos which offer stylish designs while also being economical.
I won’t spend 150$ for a pair of diesel jeans when I can buy 4 pairs of stylish jeans for less than 100$.
Generally, you should spend 90% of your money on things that are related to experiences, knowledge, your health or making more money.
All the other stuff are just toys. You can buy lots of toys like fancy cars and houses when you become rich.
If you do it earlier than that, you will never become financially free. Spending thousands of dollars on your house’s mortgage or car loan will sabotage your financial success.
Downsize as much as possible and live in simplicity. When you get rich, you can enjoy playing with toys.
Belief Change No 2: Only Compare Yourself To Your Old Self
Comparing yourself to others is simply disappointing. You are unfair with yourself if you are measuring your progress in the gym as a newbie with Schwarzenegger’s physique.
Not only this makes you feel inferior but it also doesn’t motivate you to achieve more. Because it doesn’t let you realize the progress you have already made.
That’s why you shouldn’t compare yourself to others.
Instead, you should compare yourself to who you were the previous year.
This really shows if you have taken any significant leap of progress or if you remained static. As long as you keep progressing significantly every year, you are on the right path.
This also keeps you motivated to accomplish more because you can clearly see what you have already accomplished.
You start feeling more confident, strong and self-reliant. And this helps you go for more!
If you want to listen to the podcast I mentioned in the beginning, here is the link: How Multi-Millionaires Think.