Friday

Frugality: Anyone can Get Rich

How to get rich
Do not read this unless you seriously want to know how to get rich because you won't want to hear what I have to say. Are you ready to listen?

There are basic, simple steps upon which everyone can get rich - given time.

So, this is not get rich quick, but where did all those get rich quick schemes get us any way?

This is not based on luck like Get Rich Quick is for the majority of people. It is based on "Anyone can Get Rich". So let us proceed slowly and Get Rich in 3 basic steps...1...2...3...

1. Economic ChoiceWhen you have 1 dollar you can spend it or you can save it. There are a few variations like where you spend it or how you save it but essentially it is as simple as - spend or save.

2. Compound Interest
1 million dollars will get you 60 thousand dollars interest.
Compound interest is often called the 8th Wonder of the World but it is also often dismissed because it takes time. Small numbers seem stupid and even children are not impressed with their return but saying 1 million dollars will get you 60 thousand dollars in interest does not sound so stupid. So save your money. Start now and get interest, the best interest you can.

3. Attitude Change

You need to change your attitude:
  • Stop being a consumer.
  • Stop aimless spending. Buying something will not make you feel better.
  • Possessions do not equal status. The person who has the most when they die is not the winner. How many TV's does one house need? How many DVD players does one family need?
  • Get off the fashion bandwagon. Why are you paying 300 dollars or 150 dollars for jeans when you can get them for 40?

So 1,2,3, these are the basics on How to Get Rich - slowly.

Want more practical ideas like how to make a budget and what to save on try one of my favourite practical books Your Money or Your Life Joe Dominguez and Vicky Robin. (If you purchase it through this link to Amazon you are not charged extra but the owner of this site is paid a very small commission that would support their continued writing efforts)

2 comments:

  1. I agree with you that you don't win with how much you own... you really don't need all of the stuff we have... I am moving in a couple of months and I plan to downsize insanely... I want to live a less cluttered life...

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    Replies
    1. When you’re clear about your purpose and your priorities, you can more easily let go of things that don't support these I think. Don't you?

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thanks for your input - i love comments