How to become rich

 HOW TO BECOME RICH 

All these steps which I am going to tell you these are all from getting after long research and you can also get these steps from the very famous writer of the book “Rich Dad Poor Dad”. This is the book which is written by Robert Kiyosaki. In this book, the author described the nature of his two fathers. One was his father who was poor and other was his friend Michael’s father who was described as rich by the author. His own father has completed his studies and working in a company. He spent his whole life by working in a company and suffered from financial debt in his whole life. He wanted the author to do the same as his father did in his life. But the author did not want to do the same thing as his father did as he saw the condition of his father. On the other hand, the rich father had not acquired any formal education but he was a rich person in his life. The author decided to learn from his rich father about how to become rich and successful in life.

rich

Everyone wants to become rich as well as successful in life. For this, they initially start it by thinking of the dream. After deciding the dream, they start working on it. They continuously follow the same path and thought that they will surely become rich in the future. But I am sorry to say that most of the people trapped in rat-race. Eventually, they are only able to achieve their goals and make money for living. At last, they died one day. Before, starting the way how to become rich, I want to tell you a short story.

plans

Once there was a farmer who had a donkey with him. The donkey was languished in nature and did not work for the farmer at all. The farmer became very perplexed with the donkey and one day, he started beating the donkey in a barbaric manner. After all his beating, the donkey was same as before beating. One day, the farmer sat on the donkey and hung a carrot in front of the donkey’s face. The donkey wanted to eat the carrot. In this way, the donkey started working for the farmer.

farmer-and-donkey

Just like the donkey, people also follow the path of the dream which is hanging in front of the people. They also move ahead as same as the donkey in order to achieve their dreams. But I am here not to make you as like as a donkey but to tell you how to become rich.

Let’s start with the basic lessons:

Lesson 1: Rich does not run behind the money.

coins

If you have given any task to do without any return i.e. money. How long will you able to continue it doing the task. I think maybe 1 day, 1 week or 1 month. Not more than a year. Finally, you will quit the task. But there are many advantages of doing such tasks. You will able to do the tasks with the heart without thinking about money. You will able to discover new great ideas. Looking amazing! But how? 

Read this story!

The rich father told the author to work in a store without getting any money in return of work. The author got ready to do the work because the rich father promised him to teach how to become rich after this work. The author noticed the client there who daily torn the front page of the comic page. One part of the torn page, he kept himself and other he threw out. The other torn page was collected by the distributor.

book-distributor

One day, the author asked the distributor if he could give him comic books. The distributor ready to give him the comic books but he put the condition that he was not allowed to sell any books. The author found out any idea in this. The author was not allowed to sell the books but he can give the books on lease to read. In return, the author charged fees. Later on, he gave his tasks of leasing books to his friend’s sister. The author paid her $1 for a week. But, in reality, the author earned $10 from a week.

From the whole scenario, you can easily understand how the author discovered the idea of generating money. The author did not run behind the money instead of money run behind him. So, the author wants to teach us that we should develop such a system where the money runs behind us not we run behind the money.

Lesson 2: Financial literacy

financial-literacy

I know that everyone will achieve their dreams in the future. I also know that all will become successful as well as rich in the future. Have you ever imagined how will you maintain your flow your money for a long period of time?

In the 20^th century, the meeting was conducted in most of the millionaire attended the meeting. After 25 years, most of the millionaires lost their money as they were not able to control their flow of money.

Now you can understand the concept of financial literacy and its importance. If you are not able to control the flow of money, then your results will the same. So, it is very important to be financial literate.

Lesson 3: Mind your own business

mind-your-own-business

Once the most famous as well as the popular person, the founder of Mac Donald, Crock presented the speech to MBAs class students. All the students inspired after hearing his speech. Some fellow students requested him to spend a little time with him. He agreed. Suddenly he asked them what business he did. All the students laughed and answered him that sir, you sold hamburger. He started laughing after hearing that and told them that he did the business of real estates. As he looked after where he located his next place to open his new franchise and deal in the matter of purchase of land. In this way, he did the business of real estates.

In this way, the same lesson the author wanted to teach that most of the people do not mind in their business and looked after into other’s businesses. The people work for the government by paying the taxes, they work for the company by getting remuneration in return. The main reason for working for others is just because of our education system. 

education

The education system teaches us to become employees not the employer. What you study that you become. If you study science, you will become a doctor. If you study mathematics, you will become an engineer. Now the problem starts when we are not able to differentiate between business and profession. When someone asks you what you do, you may tell you that I am a doctor or engineer or banker. These are all the professions, not the business. I mean to say you that not make them rich by working for them instead of work for yourself and make you rich.

I am not saying that you stop working your work. You can do your job and collect your assets. I mean the real assets. I am not saying to purchase a car as an asset. According to me, the car is not an asset as when you start using your car, the value of the car will automatically depreciate to around 25% and it will increase your expense column. Now you are thinking about which type of assets should purchase. You can invest in real estates, stocks, debentures, bonds etc.

Lesson 4: The rich invest money

invest

As the author teaching the students professionally, he understands that everyone has the potential to do great things. Instead of having potential, we are not able to do great things because of our doubts on ourselves. In the real world, the people who are bold and courage will move ahead in their lives, not smart people. But it is also true that we should have knowledge along with courage and bold. Most of the people do not like to take risks in matters of money. But if you want to become rich, you should learn to take risks. If you increase your financial IQ, then only you can achieve it. If not, the coming time can be dangerous as well as horrible to you because the old goes the new comes. Today’s the people who are doing financial struggle because their thinking level is not according to the time. Then these people do not accept it and pass their blame to their boss or the upgrading technology.

Financial intelligence is made of these 4 main technical skills:

financial-intelligence

• Accounting - The ability to read numbers. This is a vital skill if you want to build business or investments.
• Investing - The science of making money.
• Understanding markets - The science of understanding demand and supply.
• The law - The awareness of accounting cooperates, state and federal regulation. 

Most of the people understand the concept of working hard. These types of people wait for an opportunity for investment. Some do not invest money due to lack of money. Some have both the money and opportunity for investment, but they do not invest money. But you need to understand how to generate an opportunity to invest the money instead of waiting for an opportunity for investment. Once, there were financial crises in Arizona, the people ready to sell their houses for $20,000. The author seeks an opportunity and purchased that house. After that, they placed an adds for a house on sale for $60,000. The people purchased that house and got money within the 5 hours. In this way, he added money in his asset column. In this world, we may find two types of investors. One is simple investors who invest money without any formalities and other is professional investors like the author.

If you want to become such professional investors, you should have 3 skills:

• Find the opportunity that others may not able to find out.
• Increase your money.
• Organize your team with smart people.

At last

Never invest in a business you cannot understand. – Warren Buffet