Who doesn't want to be wealthy and live a prosperous life without worrying about money? Everyone has their own perspective on wealth. However, did you know that becoming wealthy can start from simple things in our daily lives?
Chris Hogan, in his book titled Everyday Millionaires, reveals that the secret to the success of millionaires and billionaires lies in a number of small habits and wise decisions. He conducted a survey of 10,000 wealthy individuals and found that they were not extravagant spenders and flashy jet-setters as we often perceive. Most of them are hardworking and unassuming.
Ways to Become Wealthy in the Future
There are several ways to become a millionaire or billionaire in the future that you can try, including:
Now, let's discuss each of these methods in detail in the following article!
How to Become Wealthy?
Although money isn't everything, its presence can certainly make your life easier. That's the biggest motivation for people to become wealthy. Some even desire to attain instant wealth, willing to do anything to achieve it.
So, here are several ways you can try to build wealth from a young age:
1. Increasing Income Sources
Basically, to achieve your dream of becoming wealthy in the future, you need to earn more money. One way to do this is by finding a side job. With a side job, you can have a substantial income that allows you to allocate more for savings or investments.
2. Creating a Financial Plan
You can determine your financial goals, such as pursuing a Master's degree, getting married, preparing for a down payment on a house, and many more, before starting to allocate your funds. Having goals can serve as your own motivation to regularly allocate a portion of your income in order to achieve those goals.
3. Cultivating a Thrifty Lifestyle
Life is indeed only lived once, but it's not just about today, my friend! You surely have plans for the future and require a significant amount of funds to make them a reality. So, if you don't limit your expenses at present, it's possible that those goals won't be achieved and you may even end up in debt.
4. Start Investing as Early as Possible
One of the most effective ways to become wealthy is through investing. Simply put, investing is the act of putting capital into specific assets to gain profits. There are various types of investment assets, ranging from mutual funds, gold, bonds, stocks, real estate, and many more.
The basic principle of investing is high risk, high return. The greater the potential returns we can obtain, the higher the risk of losses. Usually, investment products with high return potential are suitable for long-term goals (>5 years). Therefore, in the short term, their prices...
An example of a long-term investment instrument with great profit potential is stocks. The minimum purchase of stocks is one lot (1,000 shares). The price of one lot of a company's stock differs from that of other stocks.
For young individuals with limited investment capital, purchasing one lot of stocks may require a significant amount of funds. Therefore, stock mutual funds can be a more affordable alternative.
For those of you who are not familiar with mutual funds, a mutual fund is a container for pooling collective funds from investors, which are then managed across various asset types such as stocks, bonds, and deposits. The party that manages the funds and develops investment strategies is called an investment manager.
Well, equity mutual funds allow you to own the best stocks selected by investment managers. So, there's no need to be confused anymore in choosing good stocks to invest in, because the experts have already selected them for you. The minimum purchase for equity mutual funds is also very affordable, starting from only IDR 10,000.
5. Avoiding Debt and Unnecessary Expenses
Debt is not always bad, as long as it is not consumptive and does not exceed 30% of your total income. Examples of consumptive debt include buying a cellphone, motorcycle, or car on credit.
In addition, you can minimize unnecessary expenses, such as buying phone accessories, new bags, new clothes, and other items that you don't really need. Therefore, it is important to recognize the difference between needs and wants so that you can be wise before spending money.
6. Don't Be Afraid to Try New Things
Often, we get trapped in our comfort zone, which holds us back from moving forward. Well, it takes courage to learn new things that may provide us with new skills. With these new skills, you can open up great opportunities to make them a source of income.
Therefore, never be afraid to try new things. Who knows, these new things could be one of the ways for you to become wealthy in the future.
7. Not Money-Oriented
Not all wealth solely relies on the presence of money. Sometimes, you need to invest in knowledge and education for yourself. By having useful knowledge and education, other conveniences will come. Life will also become more organized for us to live.
8. Build Relationships
As social beings, we need each other to achieve certain goals, including becoming wealthy. You definitely need other people to help you achieve a comfortable life in terms of business and personal aspects. Therefore, build good relationships with people around you.
9. Building Self-Confidence
One of the simplest ways to become wealthy is by building self-confidence. Being insecure will hinder your progress, so it's really important to have confidence in the steps you take.
10. Dare to Take Risks
Every decision we make in life carries its own risks. However, don't let risks become barriers to your progress. For example, to build wealth, you can invest your money in assets and start a business.
Certainly, both endeavors entail the risk of financial loss, but without trying, you will never learn. Nonetheless, you should also consider your financial situation when making investment and business decisions.
Conclusion
There is no instant way to become wealthy; it all takes time and a long process. You can start with simple things in our daily lives. Some of them include practicing frugality, increasing sources of income, and starting to invest as early as possible.
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