How to Get Rich Quick

by David Ning · 10 comments

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.

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{ 10 comments… read them below or add one }

Joe March 6, 2008 at 10:07 am

Actually, you should explain compound interest in this post. Seems like an appropriate topic for someone clicking on “get rich quick”.

Also, while stocks do outperform every other investment vehicle percentage-wise, real estate will make you more money because of leverage. Boy, do I wish you could buy a 30 year mortgage on stocks.

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Greg the Blog Dude March 7, 2008 at 8:24 am

I think many are chasing the “Get Rich Quick” dream and unfortunately they slowly realize that there really isn’t such a thing.

Important note: The key is to always prepare and as the phrase goes…

“Luck is created when opportunity meets preparedness.”

Greg

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Kacper March 7, 2008 at 8:25 am

I think there are a lot of opportunities, that can enable quick way to getting rich. We should look for them, instead of stacking with current sources of income and slowly increasing our savings.

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Mrs. Micah March 7, 2008 at 8:45 pm

I think one of the pitfalls of getting rich quick is not knowing how to handle your money once you’re rich. Getting rich slowly by careful money management, etc, gives you the skills to handle it once you’ve got it. That way you can enjoy and grow it at the same time.

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Mayank Rocks March 8, 2008 at 11:42 am

@ Mirs Micha

Handling money and not spending all of them. Investing the money somewhere is a good option to increase your treasury.

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luz March 9, 2008 at 3:19 am

One really have to sacrifice to gain financial stability even it will cost you to spare buying LCD for yourself.

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lena the thinker March 9, 2008 at 3:49 am

It takes sometimes to control oneself to keep track of your budget. Keeping money in banks is good to earn interest.

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LiteDeals March 10, 2008 at 9:24 pm

Well, I am not sure whether if anyone is interested in my site here as most of people here did not buy anything during Black Friday. I would like to add that to save money, you should always find a deal when you really need to buy something. Moreover, if you are well-organized, you can always find some Free-after-Rebate deals :-)

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kentuckyliz March 19, 2008 at 1:49 pm

Tempted to try to get rich quick?

Remember the saying,
“Only the greedy get conned.”

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carol November 9, 2013 at 6:28 pm

I would love to experience just a few months of having big money of course. just 2 days would be unreal. I would think that would fill all the dreams u would have.

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