How to get rich
How. To. Build. Wealth. This is good stuff. We had a chat with Vince Scully from Life Sherpa in our ‘how to get rich’ series and here’s the gold that we talked about:
Manage your money well
Sounds basic but it’s essential! Make the most of what money you have, whether that’s heaps or not much at all. Building wealth is all about wealth-based habits, and good money management is a key habit to include in your long-term plan. Have a read of ‘Atomic Habits’ by James Clear for some tips on how to make habits do the work for you. Also check out our effective budgeting series to get some tips for how to manage your money better.
Spend less than what you earn
Again, another basic but makes all the difference with personal finances. This doesn’t have to be a tricky thing to analyse – just get all your expenses down on a piece of paper and look at what you earn. Do they line up? If you’re overspending, cut back on the non-essentials as a starting point. Get to the basic minimum of what you need to live, and see where you stand. Change your habits so you don’t default to just spending without thinking. Get to know your money personality and catch yourself before your natural spending habits kick in!
Buy and hold assets for the long term
Investing is all about choosing your strategy, making the moves to suit, then sticking with your strategy to see it through. I always say have a strategy no matter how small! But there’s no point in a strategy if you won’t stick it out – changing your plans every 2 minutes won’t bring about lasting results. Think of the concept of a money tree – plant it, water it, give it some sunshine, throw on some fertiliser and let it grow. Don’t pull it out of the ground and replant it every day – let it do its thing.
Continue to invest
Don’t make one investment move and think “done”. Make investing a habit and you’ll be building your investment on an ongoing basis. There’ll be more waiting for you at the end of your investment journey. Think of ongoing investment as the water, sunshine and fertiliser to your long term money-tree growth plan!
Have the mindset of an investor, not a saver
A principal we’ve heard many times is ‘save, save, save’. Maybe that’s something you learnt growing up. We want to challenge that thinking to be more about making the dollars work for you – invest in areas that you value to build that initial investment over time. Think of that money tree idea again – you don’t just buy the plant from the hardware and not plant it in the ground to let it grow. Plant it! Invest its roots in the soil!
Set goals
You need a goal. Without a goal you have no strategy. Again like I say – have a strategy no matter how small! Without goals we’re just existing – eating, breathing, sleeping. Let a goal inspire you! There’s nothing wrong with aspirations! Goals give our life interest and colour. Whether it’s a new small business you want to build, aiming for a renovation on your house, a holiday, a new job, a new car – whatever! We don’t judge your goal. Just have one lol.
Do the opposite of what others are doing
Look for opportunities! A heap of people who’ve built wealth successfully have invested in things no one thought to do – so get creative with what you invest in! Create something new that inspires or helps people and you’ll have created an opportunity to build wealth.
“6 big decisions that will impact how you build wealth:
1. Where you live
2. What you drive
3. How you prepare for emergencies
4. How you prepare for retirement
5. How you make a living
6. Who your partner/husband/wife is”
Celebrate other peoples’ successes
The old saying of “if you want a friend, be a friend” is true of achieving goals! Don’t instantly hate on someone doing something in the same space as you – think about how you can support each other so it’s a win-win for everyone. It’s a two way street – if you offer up support, you’ll get support in return. Simple as that.
Consider creating a form of passive income/second job
This might not be for everyone (juggling a few gigs may not suit your skillset and that’s totally cool) – perhaps the best way for you (remember it’s personal) is to look into a side hustle or second job to help increase income. Know what you can handle in terms of risk, time and skill before you jump in and make a plan so you do your work well.
Try and pay as little tax as possible (legally)
Get a solid accountant in your corner to cover all your bases regarding your personal situation. There’s a lot to know in the tax landscape and it changes continuously, so invest in having an amazing accountant providing excellent advice. Just because you can do it yourself, doesn’t mean you should.
Be a leader in your field
This opens up opportunities that wouldn’t make themselves known if you’re not seen to be a leader in your industry or sector. Make the most of the opportunities you have and be stoked to be involved no matter what you’re doing.
Focus on helping solve problems for people
The more problems you solve for people, the more money you’ll have the ability to make. All the richest guys and gals in the world have found a problem to solve – an idea, a product or a service of some kind. Think creatively about what people could use in their lives and then go and make that thing. Think innovatively!
Don’t be a dick – money amplifies who you are
If you’re a jerk, having more money will just make you a bigger jerk. Seriously. Don’t chase the dollars so much you become an awful, greedy person who does not value other people. Wealth exposes who you are, so make sure you’re grounded and authentic before you seek wealth. The world needs genuine, kind and amazing people so add to that number!
