Is there a single and proven path to wealth? Not really, because what works for some people can be a flop for others. But don’t give up! We’ve gone through a number of tips and recommendations to help you become wealthy and picked out four ways that can really work.
Firstly – choose your other half wisely
No, it’s not about marrying for money and becoming the owner of half your wife or husband’s wealth. It’s about having a partner who is supportive and has similar goals to our own. A wallet grows much faster if two people work for it, rather than one. Such a spouse is a wealth multiplier!
On the other hand, be wary of partners who are obnoxious from the very first date. Researchers from the American Psychological Association have calculated that in Western culture as many as 90% of people will get married before the age of 50, but 40-50% of these weddings will end in divorce.
Meanwhile, divorce is a huge blow not only to the relationship between two people, but to their wallets. Jay Zagorsky, a researcher at Ohio State University, calculated that even with a 50/50 split of assets, each party loses 75% of their assets. Why? It’s all about simple economies of scale; two people (assuming the couple had no children) have a lower cost of living when they live in the same house, share resources (such as a car), etc. – A compatible marriage is a good way to be wealthy, and divorce is the quickest way to forget about wealth, Zagorsky argues.
Second – surround yourself with people better than you
According to social psychologists, people often tend to engage in self-valorisation, i.e. comparing themselves with people who are worse off than us, e.g. poorer, with weaker jobs. Self-valorisation makes you feel better, but it does not give you the impetus to improve your life situation because “others have it worse”.
We mentioned that it is worth finding a partner for life who will also want to be rich. What about others? Here, too, we need to look for people who will help us become, above all, a better and wiser person. Toxic and lazy friends will not only not help in earning wealth, but can make it much more difficult.
It is worthwhile to find a mentor who has been successful and will be our guiding light. It doesn’t have to be someone you meet in person, because today successful people are happy to share their knowledge and stories in books, podcasts or videos.
Thirdly – live below your means
Do you like living in the here and now, where you don’t worry too much about saving money, because there will still be time for that? Unfortunately, you probably won’t become a rich man. Warren Buffett, one of the richest men in the world, sold newspapers at the age of 12 and earned $175 a month. At 14, he bought a 40 acre plot of land in Nebraska, which he leased. Today, his wealth is estimated at $84.4 billion.
One of his main thoughts is: “Rule No. 1: Never lose money. Rule No. 2: Always remember Rule No. 1.” By controlling his spending and avoiding living beyond his means, Buffett has become rich, very rich. Additionally, he has always said that he wants to give his children as normal a childhood as possible, even though he could buy them anything. Why? For a simple reason, money dissolves. Earning it is difficult, but spending it is very easy and pleasant.
Fourthly – do not rush too much
First million before thirty? Nothing of the sort! According to calculations by The Spectrum Group, the average age of a millionaire in the US is 62, and only 1% of all American millionaires are under 35.
Building wealth takes time. Of course, a high salary or income from a business in the here and now is very important, but there is no need to delude yourself that you will become rich overnight. It’s a process that requires a plan and consistency. Sure, extra cash injections are very helpful, but the most important thing is patience and a lot of work.
The aforementioned Warren Buffett summed it up this way: “Sometimes it is the case that great talent is of no use, great effort will not help, it just takes time. You don’t create an offspring in a month by impregnating nine women’.