Earn, save, invest. If you want to get rich, these three things should always be on your mind. Also in that order.
The key to successful wealth creation. It's not that complicated. You don't even have to earn a lot of money to get rich if you have healthy financial habits. There is no point in chasing low probability outcomes, such as guessing the ups and downs of the market, trying to trade yourself for wealth, or chasing a lot of money all at once with a program rapid acquisition.
1. The Habit Of Earning More
I also believe that increasing your earning potential is a way to build wealth faster. While I don't think it's necessary to destroy your mental well-being by continually chasing more money, I do think it's natural to earn more in your lifetime.
I believe that a person can only earn more by learning more. The more we learn, the more value we can bring to other people and organizations. And that's how we make more money.
Now does that mean you have to set yourself some unrealistic goals like "I want to make a million dollars a year"? No. The problem with our company is that we focus on random numbers. , $ 100,000 a year is something a lot of people focus on. Why? It is useless to work so hard and sacrifice so much to earn a certain amount of money, to burn yourself the next year.
Instead, I consider earning more a habit. Every year I want to learn new skills and new ways to increase my earning potential. I don't look at the amount of money I earn. I see if I am making progress This is what matters more than anything else.
2. Used to save more
Over the past four years, I have earned a lot more each year. But my cost of living has remained the same. I haven't improved my house or my car or anything. I have the same expenses, except now I earn more.
So I save even more. This is the key to the savings habit. The biggest mistake is saving the same amount of money if you earn more money. When I started I could only save 10% of my income because I wasn't earning that much. But each year I could save more because I earned a little more. I think it's a losing game to just focus on saving.
Pinching Penny often makes you fear spending money. I have often seen this in my family. They are so afraid of spending money that I have family members who are over sixty and have substantial savings but still live as if they were in college.
The first thing they ask you when you talk about anything is, "How much did it cost?" Last year my dad bought a Traeger pellet grill for about $ 1000. When my parents had a family barbecue, some family members talked about the high price of these things.
Then they ate a smoked burger and said, “Wow! That's great. Where did you get the meat from? We have to buy that too. I said, "Dude, that's just supermarket meat. The Traeger makes it special." Life is too short to save every penny you own.
3. The Habit Of Investing More
The biggest mistake I made in investing was that I was never consistent. I bought my first shares in 2019; then I sold my shares a few years later. I haven't invested for several years. At one point, I put $ 5,000 into a SandP 500 index fund. But I haven't added any money for several years.
But around 2020, I started to apply the philosophy of Stoicism to investments. I started to see investing as a habit that only pays off in the long run. I got over my fear of losing money & I started to invest more money every year. Now, I invest every month. I keep six months of spending in my savings account, I have a rental property, and I put everything else on the stock market. But I started to earn more, then I saved more and then I started to invest. People want to skip the first two steps.
They want to trade for wealth. They want to buy real estate without spending any money. They take advice from people who manage boiler rooms on TikTok or Reddit. While some people are lucky (and we hear a lot from these people), most of us will lose money just looking for quick cash.
Ultimately, the creation of wealth depends on our habits. If we have healthy financial habits, continue to grow and invest our money wisely without taking big risks, we will win.
