What Rich do to Get Rich

Do you want to become rich? The formula is simple. If you want to become doctor you should study medicine, if you want to become Nurse you should study nursing. It is same with becoming rich, if you want to become a wealthy… you should study other wealthy people and you should do the same things they have done to become millionaire.

1. Live Frugal 

People who drives expensive cars and wear expensive suits are not millionaires, these people

are usually in heavy debt. People who look rich may not actually be rich. They are just over-spenders.

On the other hand millionaires in their early life do not buy expensive cars or expensive houses, they

live frugally and try to save every money
they can and then they invest that money wisely.

2. Calculate Your Net-Worth 

Millionaires focus more on their net-worth rather than their paycheck. They invest 20% of their monthly income for the long term. To calculate your Net-worth, you need answer this simple question – How much money will you have after selling all your items and after paying all your bills if you have to move in other country tomorrow?

3. Make The Budget 

The difference between rich and poor is that rich people invest their time to create monthly budget and they spend their money according to the budget. To become a millionaire, you should know how much money you are spending on home, car, education and household expenses each month and each year.

4. Set A Goal 

Do you have clearly defined monthly, annual and 10 years goals? Set a goal to become a millionaire in next 10 years. Write your goal down on a paper and watch it daily twice. Make short term and long term goals about how much you want to earn and where you want to invest your money to achieve your goals.

5. Own Your Home

Millionaires live in the same house for more than 20 years. You should buy a good home where you can live for next 20 years and where the value of your house will appreciate with the time.

6. Live Simple

Financial freedom is more important than social status. Don’t buy expensive items to impress other people. Buy only those things that you really need. According to a famous book Stop Acting Rich! 86% of the luxury cars are bought by non millionaires. Save your money every time you can and invest it wisely to get above average return with the help of professional investors.

7. The Rich Are Happier Than Poor

Millionaires live below their means this is the only reason they have bigger bank balances than others. Whenever they get into financial  emergency they don’t get worried as they have money to solve their financial problems. According to the research Financially independent people are happier than those in the same income/age cohort who are not financially secure. 

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With regularly investing your money in the right business either online or offline and with the magic of compound interest you can become very rich in the long term.