There are a few ways to get wealthy: be part of the Mexican cartel, sponsor a Ponzi scheme or start investing your money as early as you can so that your money can work for you even when you are sitting on the toilet. Since I don’t speak much Spanish then I don’t think I can help with how to be part of the Mexican cartel. I also don’t think I can brain wash you to fall into a Ponzi scheme since you are smart enough to be friends with FinanceRite but I sure can help you find out how to get wealthy by making your money work for you.
First of all let’s define wealthy because most people think of being wealthy as having as much money as Walter White in Breaking Bad or maybe you think of being wealthy as having a lifestyle like Leonardo DeCaprio Wolf of Wall Street. I don’t really blame you my friend for thinking this way; it’s the Hollywood effect baby. Who wouldn’t like to have barrels of money or spend time sniffing powder from a woman’s booty? But let me introduce you to how we define wealthy. When you save “X” amount of money on a regular basis and invest it on a regular basis, you my friend are now getting wealthier every single day as your money is working for you to make you more money.
Investing could be complicated if you want it to be or it can be very easy if you follow simple steps.
Here are 3 lazy ways to get wealthy:
- Compound interest — Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit. Or in different words interest on interest.
- Automatic Saving Apps — those apps offer you a pain free way to save and invest without you even noticing it. Apps like Digit and Acrons will help you save and invest money that you probably wouldn’t notice got taken from your account.
- Don’t Forget about the Cash Back — Cash back credit cards are in everyone’s wallet nowadays because of the free cash they offer for simply using the card for your daily transactions. Over time those cash back will accumulate and over many years when you simply forget about the cash back you will realize that you are sitting on thousands of dollars.
- Earn More — Earning more doesn’t necessarily means yelling at your boss and ask for a raise because that’s how you lose the job not earn more. There many ways now that you can earn more cash on the side Driving with Uber, renting an extra room in your house on Airbnb doesn’t require any NASA expertise, in other words there are many applications that can put extra money in your pocket every month.
Example: Imagine saving and investing $100 from every paycheck (twice a month) for the next 30 years on an annual return of 7% on your investment (which is below the average return of the S&P 500). After 30 years you would have an average of $250,000 from only saving and investing $100 from your bi-weekly paycheck.
Getting wealthy isn’t usually and easy thing and it usually require a lot of effort, patience and expertise but stile there are few things that doesn’t require much and can make you more wealthy than you are now.