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How to get RICH slowly??

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avont78
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How to get RICH slowly??

Well the reason why many people get conned by get-rich-quick schemes is because they are too greedy, they want to get rich quickly!

But given time and discipline, everyone can get rich eventually and have a comfortable living and retirement! Actually the steps are simple, it just take patience and discipline:

1) Pay yourself first every time you get your salary! Save at least 10%

2) Build up your emergency fund first (at least 6 months of expenses)

3) Then start channeling your monthly saving into investments (better to set up an automatic deduction system so that you won't forget)

4) Depending on your risk appetite, divide your monthly savings into low cost stock index fund and low cost bond index funds (e.g. Vanguard).

5) Do this month after month - let dollar cost averaging & compounding do its work to grow your money

6) That's all! After many years, you will see the fruit of your labour

7) And if along the way you get pay increments, channel this extra money into your investment as well, so that your money grows faster!

Thu Jul 02, 2009 4:23 pm

Cherryl Hanson-Simpson
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Location: Jamaica

I agree that if persons adopt those pointers then things will be better where their financial wellness is concerned. But parents also need to teach their children about savings and money management at an impressionable age. Lack of this lesson will allow these children to grow up believing that spending is better than saving.

The poor and middle class were not taught about this while growing and so they believe that getting rich at a fast pace is the better way.

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Thu Jul 02, 2009 5:31 pm

No-Brainer
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Location: Oregon USA

This has always worked for most people, but times they are a changin' and fast. Those tips were formulated long before the Internet was created.

What I try to teach my kids is, get a website or a blog going and establish yourself as an Internet Celebrity as much as possible, at least in some niche.

The simple recognition I have been able to achieve online in the last few years allows me to earn more than I did when I owned my own consulting business for 35 years.

The leverage and compounding afforded by the massive number of people online is a power to be reckoned with.

Not only my opinion, but my personal experience.

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Thu Jul 02, 2009 6:15 pm

avont78
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Yup totally agreed! The internet has made doing business much easier and made a lot of people very rich!!

But I guess these evergreen principles still apply today..even if you earn a lot of money from the internet, you could still grow these money using the above steps. Combining these 2 together will definitely be a great power!

Better still, use all these money gain from your online ventures to buy a property to rent out and get passive income for the rest of your life.

Yes things are definitely changing very fast now..what's hot today might not work tomorrow..so get the best out of your online ventures today!!

Fri Jul 03, 2009 12:32 am

No-Brainer
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Location: Oregon USA

quote:
Originally posted by avont78
Yes things are definitely changing very fast now..what's hot today might not work tomorrow..so get the best out of your online ventures today!!

I am doing that, but more important I am building skills. When what I do is no longer hot, I will be on the next one in a heartbeat and the same skills will come in handy.

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Fri Jul 03, 2009 2:12 am

Tracie00
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Location: Henderson

One can consider leaving your credit card at home when you go out at night. Save cash reserve you will require to get the right attitude in relation to money. Encompass the right attitude about money will help you set aside more money into your saving.

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Wed Oct 28, 2009 4:52 pm

No-Brainer
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Cash: $ 66.65

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Joined: 29 Dec 2005
Location: Oregon USA

quote:
Originally posted by Tracie00
One can consider leaving your credit card at home when you go out at night. Save cash reserve you will require to get the right attitude in relation to money. Encompass the right attitude about money will help you set aside more money into your saving.

Or better yet why not lock yourself in a closet and just have someone bring you meals? Hmmm . . . I guess that wouldn't be much fun, but neither would going out without my credit card.

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Wed Oct 28, 2009 5:03 pm

Blackbash
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Location: Los Angeles

The title is funny, somehow. Honestly, you can't get rich the slow way. I think becoming rich means fast, but hey...

First of all, what is your definition of "rich"? If rich means being a millionair, how can you become one, in time? Those are my concerns.

Kind regards,
Blackbash

Wed Nov 04, 2009 11:27 pm

No-Brainer
Senior Member

Cash: $ 66.65

Posts: 907
Joined: 29 Dec 2005
Location: Oregon USA

quote:
Originally posted by Blackbash
The title is funny, somehow. Honestly, you can't get rich the slow way. I think becoming rich means fast, but hey...

First of all, what is your definition of "rich"? If rich means being a millionair, how can you become one, in time? Those are my concerns.

Kind regards,
Blackbash

It's really quite simple, through the magic of compound interest. Albert Einstein stated it was the most powerful force in the Universe and he was no dummy.

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Thu Nov 05, 2009 1:17 am

moneywise24
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Joined: 18 Nov 2009

Re: How to get RICH slowly??

quote:
Originally posted by avont78
Well the reason why many people get conned by get-rich-quick schemes is because they are too greedy, they want to get rich quickly!

But given time and discipline, everyone can get rich eventually and have a comfortable living and retirement! Actually the steps are simple, it just take patience and discipline:

1) Pay yourself first every time you get your salary! Save at least 10%

2) Build up your emergency fund first (at least 6 months of expenses)

3) Then start channeling your monthly saving into investments (better to set up an automatic deduction system so that you won't forget)

4) Depending on your risk appetite, divide your monthly savings into low cost stock index fund and low cost bond index funds (e.g. Vanguard).

5) Do this month after month - let dollar cost averaging & compounding do its work to grow your money

6) That's all! After many years, you will see the fruit of your labour

7) And if along the way you get pay increments, channel this extra money into your investment as well, so that your money grows faster!

One additional thing that helped me, is to set up a ledger system using a software tool. It is crazy how many potential I discovered, i.e. I spent money on useless items without knowing it. This got me an additional 250 USD per month without losing any of the qulity of my life, which I am saving up each month.

I think personal finance seminars should be standard in every high school and college ...

For more information, please feel free to visit http://www.moneywise24.com.

Wed Nov 18, 2009 12:22 pm

oldguy
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Joined: 21 May 2006
Location: arizona

quote:
The title is funny, somehow. Honestly, you can't get rich the slow way. I think becoming rich means fast, but hey...
First of all, what is your definition of "rich"? If rich means being a millionair, how can you become one, in time? Those are my concerns.

Blackbash - It is actually fairly straight-forward. No-Brainer (and Einstein) are exactly right - put $4000/yr into a 12%/yr index fund for 30 yrs and it is $1M. If you put it in a Roth account, your $1M is tax-free. Back in 1998 when the govt started Roths they almost gave you the recipe to be a millionaire - the limit is now $5000/yr so you would have $1.25M in 30 yrs.

The above method can easily be done by the common wage earner - it requires discipline, a never faltering rule to always put the $4000 away before anything else. The outcome is close to mathematical certainty if you follow your plan. And it gives to the freedom to spend every dime that you earn beyond that $4000/yr on fun and family - and stops most family money fueds.

Conversely, those that go for get-rich-quick deals - penny stocks, corn futures, start small businesses, be your own boss, yada - have an 85% failure rate.

Wed Nov 18, 2009 4:51 pm