Everyone who is reading this because he/she wants to know how to get rich quick needs to realize that there’s no calculated way of doing so. Every day, there are many people who all of a sudden become rich whether it’s because of the lottery or betting big on the right stock which skyrocketed. Unfortunately for us though, these are mostly based on luck and can never be repeated systematically.
So, in order to get rich, the first thing we have to learn is be patient. Time my friends. That’s the only fixed variable in the get rich formula.
If we want to get rich, we first need to start saving to create a positive cash flow. Whether it’s a dollar or a thousand dollars, we need to save as much as we can. There will be sacrifices like not being able to buy that 50-inch LCD TV or the latest Gucci bag, but everything we buy is just an obstacle to our road of becoming rich.
Of course, the better our cash flow situation, the faster we can become rich. However, just saving is not enough, or at least won’t be fast enough. In order to shorten our path to the goal, we need to have compound interest work for us. I’m sure everyone is familiar with this, so I won’t try to pitch the power of compound interest. Just note that the higher the return, the faster we can increase our wealth.
There are tons of ways to gain interest with our money, and every way involves some risk. The higher the risk, the bigger the potential return. For example, online savings account is a pretty safe way to gain interest, but it only gives roughly a 3 percent APR at the time that this article is published.
A way to get higher returns with our money is through investing in stocks. This has proven to have the highest return over a 20 year time horizon, but those that have been invested in the last 3-6 months will have wished that all their money was transferred to the online savings account. This is due to the short term unpredictable nature of the stock market even though the potential reward is bigger.
In short, my point here is that there’s no cookie cutting way to get rich. At least there’s no sure way to get rich quick. In order to shorten the time it takes to become rich, we just have to take on more risk. Whether we are willing to take on the risk is up to us, because we are the one that will live with the decision.
As a famous person once said, there’s no free lunch in this world.