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HOW TO CREATE A GET RICH PLAN

By in Investing, Make Money, Wealth | 14 comments

Overcome Obstacles to Get Rich

“Everyone in life has their challenges, mine have not been financial.” Ann Romney, Brainy Quote

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Get Rich

14 Traits of the Rich, How Many do you Have?, is my most popular article of the last two years. In thinking about the topic, and what differentiates those with wealth from the rest, I remembered this Ann Romney quote I heard on a television interview. Whether you have lots of money or not, life is a struggle. No one gets a free pass! Consider the popular celebrities with wealth and fame like Lindsay Lohan or Amanda Bynes. Even though the wealthy aren’t problem free, having a certain amount of money solves many of life’s problems. When your washing machine breaks, it’s nice to have the funds to go out and buy a new one. When vacation time comes around, it’s a treat to take the kids to Disneyland.

What are the steps to take to create wealth in your life?

Take Action to Get Rich

In spite of the life challenges we all face, more money can solve many problems. With today’s high unemployment, slow wage growth, and lackluster economic growth, it seems harder than ever to get ahead. And when you’re feeling low, those feelings can lead to an apathy which stops you from trying. But, here’s where you must fight to stop the apathy!

In Just Start, by Schlesinger, Kiefer, and Brown, ACTION is the determinant of success towards your goals.

How to Take Action to Get Rich

1. Figure out what you want. If money is your goal, make a step by step plan now. Don’t just say, “I want more money”. That’s way to vague. Be specific with your plan; I need to earn more at my current job, by getting a raise. Plot out the steps to reach your goal.

2. Investing is a viable path to long term wealth. If you have an emergency fund of 6-12 months, a stable income, and minimal debt, transfer part of your current income into a balanced portfolio of index funds regularly to get rich over the long term.

3. Start a side business.  Just as diversifying your investments is important to maximize returns and minimize risk, so is broad income diversification. Corporate downsizing is a common occurrence. Be prepared by creating a variety of income sources. Craigslist is replete with ideas for service businesses.

4. Save your money and practice discipline. This tip comes from successful businessman Mark Cuban,

“Save your money. Save as much money as you possibly can. Every penny you can. Instead of coffee, drink water. Instead of going to McDonald’s, eat Mac and Cheese. Cut up your credit cards. If you use a credit card, you don’t want to be rich. The first step to getting rich, requires discipline. If you really want to be rich, you need to find the discipline, can you ?”

Spend less and earn more. That’s the recipe to get rich. Get inspired, get motivated, and keep going throughout the good times and the bad.

Can’t Get Enough Get Rich Reading?

Share the tips you are using to get rich!

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    14 Comments

  1. I am definitely trying out the side business route. It has been interesting so far and I hope it gets better as I go!

    Lance@MoneyLife&More

    October 9, 2012

  2. Developing side hustles and being disciplined in my opinion are the key. Building more income is harder than cutting spending but so much more worth it (within balance, of course).

    maria@moneyprinciple

    October 9, 2012

  3. I took another look at you 14 traits….. and realized I am missing some. I guess I did okay without them! I think the most important trait is discipline because it helps everything else.

    krantcents

    October 9, 2012

  4. @Lance, Maria, and Krantc- Personally, I think the discipline and presistence are really important. And of course, correcting when you make mistakes.

    Barb

    October 9, 2012

  5. Hey, I recognize one of those article links!

    I love Mark Cuban. Whenever that guy says anything (well…when he’s not being outlandish), it’s usually right on the money.

    AverageJoe

    October 10, 2012

  6. I definitely agree to those who say that discipline and perseverance are important factors in becoming rich. I believe that regardless how much money you make, if you lack the discipline of saving and investing, you will soon see yourself on the road leading to bankruptcy.

  7. I’ve finally picked up one trait that’s working – having auto debits deposit into mutual funds that I don’t touch. I’m still working on the savings account, but it’s much too easy for me to dip into.

    Little House

    October 11, 2012

  8. Mark Cuban’s quote is an excellent training tip. How discipline can you be? Test yourself. Dare yourself to see how much you can cut out for a month or two, at least. Although, it may not be a lifestyle for everyone which is not what he or I am suggesting. But how can one expect to create wealth if you don’t have the right mindset/discipline?

    Ornella @ Moneylicious

    October 11, 2012

  9. I strongly disagree with cutting up credit cards HOWEVER if you don’t, you better have the discipline to pay your bill in full each and every month.

  10. @Cherleen-Well put! One step at a time and discipline becomes habit.
    @Little House-“having auto debits deposit into mutual funds that I don’t touch” THis one habit will lead to long term wealth!!! Great job!!!! (And don’t worry about the ups and downs in value, over time, your funds will grow).
    @Ornella-I like the idea of testing oneself. Make it a challenge to save and better yourself. It’s kind of like working out. The more you practice, the stronger you get.
    @Jennifer-Thanks for the admonishment!! And I repeat-PAY OFF YOUR CREDIT CARDS IN FULL EVERY MONTH.

    Barb

    October 11, 2012

  11. I think Mark Cuban’s quote is interesting. He’s a billionaire, but he didn’t become a billionaire by eating mac-n-cheese … he became one by being entrepreneurial and investing. Yet it’s funny that he talks about the frugality side of life, perhaps as a primer on discipline and avoiding distractions.

    Paula @ Afford Anything

    October 12, 2012

  12. @Paula-Many wealthy folks didn’t start out that way. And when you don’t have a ton of money, what better way to minimize expenses, while you grow your wealth, than by living modestly?

    Barb

    October 13, 2012

  13. The plan is so important. Otherwise, you wake up and it’s been 20 years and you are no closer to your goals than when you started.

    Kim@Eyesonthedollar

    October 14, 2012

  14. @Kim-Time certainly flies. And sometimes the initial plan transforms into something else…. But, without a plan, you accomplish nothing.:)

    Barb

    October 14, 2012

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