How do you get rich? Is there a simple formula to follow? The first thing is to know that some people become rich because they know how to acquire wealth. In other words, they are not interested in it (you work 35 hours a week for money and do not even know how to train it, don’t you find that crazy?).
The secret in 5 lines:
The secret is very very simple: on your salary, do not spend everything, invest, do not spend the surplus generated by investments, reinvest, and your salary will increase accordingly. If your investment income is higher than your expenses, you have become financially independent, and once you have finished working, you can take advantage or use your excess time to make either investments…
First things first, know who to listen to:
Indeed, who are you going to listen to—a person who knows how to invest and earns a +10% return per year or your neighbor? Are you having trouble making money? So, understand the following subtlety: The people are subject to rules they do not know! The rich make and know the rules, this is why the rich always win!
It’s like playing Monopoly without knowing that every turn you have money and that it is possible to build houses, you can’t win in these conditions.
How to Make Money from Home with a Method Anyone Can Use
In this case, I discovered something that is quite simple . You can make money by following a simple rule. This method is rarely mentioned. Most people, even bankers, don’t know about it! Anyone can use it. No experience, no mathematical skills necessary . I teach you everything.
This article will give you the keys to making yourself rich easily and as quickly as possible.
You are 10 minutes away from making a lot of money online so read on
How to get rich quickly and easily: Get out of the Rat Race!
The rat race (metro-work-sleep) is a kind of trap that most people find themselves in, which can be summed up in the following sentence: work for a salary that allows me to buy things that I have to work for. It is therefore a vicious circle that we have all entered into at some point in our lives, generally from our first pay slip by stupidly imitating our parents.
From your first pay slip, you started having bills, buying a sofa, renting an apartment. It starts like that, then quickly comes the car, this money pit that will eat away at your budget for a long time.
Why leave the Rat Race?
Usually you want to leave this system because you feel trapped by the metro-work-sleep system and you cannot achieve your dreams due to lack of time or money.
The Rat Race Lies:
I listened to my parents, I followed the typical pattern to live rich and “happy”.
So I went to school, I did higher education, I found an underpaid and precarious job, I invested myself, I received thanks from my bosses, unemployment and difficulties … and I struggle to keep or find a stable job.
Among all the people I have met, my colleagues, my clients, my friends, my family, I realize that many, if not all, do not have the life they dream of. You only have to see the many Facebook statuses on Sunday evening, people cry, because the weekend is over and they are forced to go back to work again. They all work hard to finally have crumbs, a precarious situation, a car and a house that never really belongs to them
They all dream of retirement, this retirement so precious, because they will finally have time. Except that there are two things that will appear. The first is health, it will start to seriously decline and you will be limited. The second is income. The income of the French drops drastically in retirement and this is often badly experienced. Often you only have 50% of your last income left, this is very little to live on.
Ask yourself, should you wait until retirement to start living ?
How to get out of the Rat Race? The false good ideas:
Work more
The first, primitive reflex is to work more to earn more. This is the reflex instilled by our parents and national education. It is a false solution for several reasons.
You are still doing the same kind of activity, but for longer than before. Finally, you are still in the rat race selling your time for money and you have even less time to enjoy your only life. Don’t think that thanks to this, you will evolve. In reality you will not evolve, because it is an evolution in the rat race. Moreover, in general you will end up being frustrated and therefore spend your hard-earned money on leisure. In the end you will be at the same point, but you will have bought the latest fashionable products to look chic like the latest Nespresso, a luxury watch, etc.
Work better
There are a multitude of techniques to optimize your time and become efficient in your work, but this is not necessarily the solution. We can notably cite the book Getting Things Done (GTD) by David Allen or the Pomodoro technique . However, by taking a step back, we realize that this is not what will get you out of the rat race, because these concepts do not change your life. They only make you more efficient, but you are still working.
Work less
The most famous book on this subject is Tim Ferris’s The 4-Hour Workweek. Naively, I think that if we combine Paretto’s law and Pakinson’s law, we could be tempted to say that ” Limiting yourself to working less allows you to concentrate on the essentials “. Except that in the end we work 80% less and with a 20% drop in salary. This remains theory. But even if it works, sometimes the 20% difference in pay is not even possible temporarily.
Good Techniques to Break Free from the Rat Race
Here’s the right approach to quitting the rat race, the one that will allow you to truly live your life
1st technique: Become financially independent
“Easier said than done” you might say. Well yes, it is the most difficult and least accessible technique, but for me it is the best. The best thing is still to get out of this vicious circle.
According to Kiyosaki , getting out of the rat race comes down to obtaining passive income (which does not include salary and is therefore weakly correlated to working time) greater than expenses. Be aware that the term passive income is a little misleading, in fact you still have to give your time, we should rather say income uncorrelated with working time (in fact investing 10,000 or 100,000 takes almost the same amount of working time).
Passive income is money that you earn without any direct action on your part (e.g. renting an apartment, dividends that fall, making money with Blogs and ChatGPT ).
2nd technique: reduce your needs
Man always tends to always want more and to never be satisfied with what he has, hence the observation that if you manage to concentrate on the essential things in your life, you will need fewer things and therefore less money to buy them. Obviously, if you need less money, you need to work less or have more margin to invest for equal work.
Since you have fewer needs in this case, you just have to reinvest your surplus.
Once you have more passive income than you need, you’re done.
What can we deduce from this?
First of all, remember that working to get your next check to last until the next month and start all over again is not a life. What you really need is to obtain income that is not proportional to the working time that you will have, for example by investing money. This income must be sufficient to end up covering all of your current and future expenses. Once this is done, all that remains is to enjoy.
How to get rich easily and quickly: Know the difference between Assets and Liabilities
To complete your financial education, we will cover some accounting concepts, including the importance of the difference between assets and liabilities .
Assets
Assets are made up of all values capable of directly or indirectly generating income materialized by the sums that enter your bank account. An ASSET is something from which we hope for a future economic advantage . More simply and to better understand I take the definition of Robert Kiyosaki, assets are something that puts money in your pocket. The most common assets and associated income are as follows:
• work and salary;
• real estate will be considered an asset only if it generates rents, therefore income;
• shares of a company that produce dividends;
• financial investments that generate interest income.
The liabilities
Liabilities are materialized by the various debts contracted, as well as the cost of the necessities that you must assume and which generate the expenses.
The most common liabilities and associated expenses are:
• taxes and duties,
• credits and interest charges,
• all the necessities of daily life: food, clothing, leisure, objects, etc.,
• alimony, fines, etc.
Why acquire more assets?
You will need to own and acquire more assets than liabilities. Indeed, if you want to get rich, your assets are like the source of life and your liabilities are death, I am oversimplifying in this example. Indeed, if you have a lot of assets, you increase your room for maneuver, because you can afford more things or more breakages. On the contrary, liabilities cost you money, for example, if you buy a shiny new Ferrari, the maintenance cost for a vehicle of this type will end up suffocating more than one of us.
Also if you have a lot of assets you can maintain larger liabilities.
Your target goal with these sub-goals
With three goals always in mind:
• increase your assets,
• limit and reduce your liabilities,
• ensure that your income is greater than your expenses.
1/ Invest only in assets that will potentially be worth more tomorrow, and/or capable of generating wealth and income. (Your relationship, bonds )
2/ Never take out a loan to buy something that could potentially be worth less tomorrow. (Typically a nice car)
#2. Make your Money worth more by investing
Making your money worth more is an important concept , because in the end only your invested money count , the rest is not yours, because it is immediately used.
Make your euros worth more each month. You are fighting against the loss of purchasing power. To counter this, your euros will have to be invested, each month you will earn a little more money and your money will help you in your effort.
Your best money are those invested
If you take out a loan to acquire a liability, this is the path your money will take. At first you will receive your salary, pay taxes on this income, pay the monthly payment of your loan and finance your necessities only with what is left. In this case it is a bad credit. Indeed, you will struggle to be able to maintain this asset that will eventually wear out and you will have to start all over again.
On the other hand, if you get into debt to acquire an asset that generates income, not only will this new income help you finance your acquisition, but you will also be able to deduct all the expenses inherent to this purchase, including the cost of the credit, and will pay your taxes on this income only if there is something left!
We can say that this is a good credit. In this case your assets struggle to pay for more things and it is much easier to make expenses if you have income, especially if it no longer depends on work. Indeed, there will come a time when finding the next promotion will be more complicated than collecting your active income.
Your best euros are those invested, because they are the only ones that make you earn even more money, the rest only covers the expenses, it is as if they never belonged to you.
Better yet, if you buy the right assets, you can also spend less.
And there you are going to tell me how this is done? In fact, if you buy the right tax systems, you can also have tax breaks. For example, real estate or life insurance allow you to reduce your taxes in addition to earning money. So you win twice, it is the tax leverage effect.
Which means that governments always favor the rich, because they create wealth for the country and therefore taxes, which governments are so fond of.