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How to Get Rich And Accumulate Wealth

Everyone wants to be rich, but it seems like most people struggle to get there. They fail for various reasons: poor planning, unwilling to make sacrifices, or lack of resources. In order to get rich, you need to do three things: define what being rich means to you, develop a plan for becoming rich and avoiding the pitfalls that prevent people from becoming rich.

Warren Buffett
Warren Buffett

Defining rich:

What do you define as being rich? Having a million dollars in liquid assets? Earning one million dollars a year? Having income in the top 10% of households in your area? Having no bills?

When most people think of being rich, they think of lifestyle: houses, vacations, cars, etc…. Some people define it as not having to work or having their home paid off. Others define it in terms of money (either a dollar figure or above a certain percentage of other households). And then some measure it in non-material ways such as relationships, happiness, and love.

Everyone has a different definition of wealth which is why no single plan for getting rich works for everyone. So before you can get rich, you need to decide what it means to you. I could be as simple as a certain dollar figure in your bank account or it may be a little more complex where you factor in lifestyle and non-material things. Whatever your definition for being rich is, write it down and be as precise as possible.

Equally as important is setting an exact date for achieving your goal. Having no date for your goal (or a date like “someday”) will most likely result in you putting off what needs to be done. Look at people who shop for Christmas presents on Christmas Eve or file their taxes at midnight on April 15th – they put them off until the last possible minute and would probably never get them done if they didn’t have a forced deadline.

Creating a plan:

Once you know what your definition for being rich is, you can create your plan to get there. There are endless ways to get from where you are to where you want to be, which is why so few people achieve their goals. So your plan needs to have a start point and an end point, each which need exact dates. From there, you need to create checkpoints or milestones so that you know early on that you’re on track.

So if your goal is to make one million dollars over the course of a year, you’ll want to have at least three checkpoints in between. Perhaps your checkpoints are to have $250K after three months, $500K after six months and $750K after nine months. Or, you could gradually build yourself up and do $100K after three months, $300K after six months and $600K after nine months.

The same idea works with debt elimination or any other goal where you are trying to increase or decrease something. But the take away is that you need a clearly defined endpoint and clearly defined checkpoints.

It’s up to your own situation as to whether to choose dates for checkpoints first or to define your checkpoints. You may find yourself doing a little tweaking to make things work in a manner so that you can realistically achieve your results.

Avoiding failure:

People fail at becoming rich for a variety of reasons. The biggest one is that it’s not a priority to them – they’d like to be rich and may even whine about not being rich, but do nothing to better themselves.

Getting rich requires hard work and sacrifice and means staying up late to finish projects, giving up time with friends and loved ones and putting the time that you’d normally waste watching your favorite TV shows to more productive use.

If you want to see any goal followed through, it takes true commitment. Not just a want, but a motivated and burning desire to achieve it.

It also involves taking risks. Using savings to invest in marketing materials to promote your product or services or moving beyond your comfort zone by hitting the pavement and talking to people you may not know.

You may need to take courses, learn a new skill or meet new people. You may find yourself working nights, weekends and holidays to give yourself an edge. The bottom line is that you need to be willing to pay the price.

Ways to get rich:

The good news is that there are a lot of ways that you can get rich (which can also result in a sense of overwhelm) and not all of them require you to push yourself to your absolute limits. Here are some tips to help you get there faster:

Use role models
Learn from both the mistakes and successes of others. It’s best to avoid people that are trying to “sell” you their success stories in the forms of plans or systems. You’re best off finding someone that’s willing to mentor you because they remember how it was when they first started out than forking out money to someone who will coach you.

Find residual sources of income
If you make $10 per hour, it’ll take you 100,000 hours to earn $1 million (before taxes) no matter what you do – and even if you worked non-stop, it would take you over 11 years to get there. But if you were to earn $10 per item on a sale, you could find ways to sell more than one item per hour and get to your goal within a year.

Another way to do this is paying someone $5 to do what you get paid $10 for (this person would be an employee or subcontractor) and you make $5 for every hour they work. When you get enough people under you doing this (as a real business), you can make a lot very quickly.

Stick with things you know
Too many people hear that something is a good way to make money and they plunge half-heartedly into it hoping to make a quick buck and be done with it. This rarely works because you need to be knowledgeable and passionate about what you do to be a true success.

If you don’t have the knowledge, you can get it through apprenticeships and research. If you don’t have the passion, no amount of knowledge will ever help you succeed.

Be realistic about your goals
Don’t set them too high that achieving them causes you stress and anxiety (which leads to depression if you fail). But don’t set them too low so that it doesn’t become a priority. Commit to dedicating a specified amount of time each day or week for reaching your goals.

Getting rich is difficult – if just wanting to be rich were enough to get there, we’d all be there. But with the right goals, an effective plan and the desire to get there, you increase your odds of success exponentially.

Do You Need A Diploma Or A Degree To Be Successful and Get Rich?

The answer to this question should be so obvious that nothing really needs to be written here. Unfortunately, to a large number of teens today, this truth has not set in. Every year, 1.2 million teens drop out of high school, and only a few go on to complete a GED. Their lives are without a future.

Why You Must Finish High School

1. Career Opportunities: With a high school diploma, you are eligible to apply for positions that may turn into promotions down the road. For example, you may get an entry-level job in retail that turns into a management position. That position may turn into district management, and so on. Over your work life, you will earn $250,000 more than a high school dropout. As a high school dropout, you will have basically two options – fast food and lawn care – take your pick!

2. Staying Employed: High school dropouts who do begin work have a 16.3% unemployment rate 8 years later. (www.wham.co/articles/7-reasons-for-getting-your-high-school-diploma) Unemployment rates for high school graduates mirror the national unemployment rate, which today is about 5.7%.

3. Lifestyle Differences: Dropouts have more unplanned pregnancies and have a substantially higher crime rate; dropouts cannot afford things that their graduated counterparts can, such as a new car and decent housing. (www.en.wikipedia.org/wiki/high_school_dropouts_in_the_united_states)

4. Inability to Further Your Education: While it may not seem important as a teenager, you may, at some point in your future, decide that you want to go to vocational-tech school, to a community college, or join the military for some skill training. None of these options is open to you without that diploma. You will have to get into a GED program, and passing that test is a lot harder than you think, especially after you have been out of the “learning mode” for a while.

It Gets Only Better with a College Degree

While a high school diploma certainly opens some doors, those doors are rapidly closing. We are no longer a manufacturing society. Twenty years ago, a high school grad could get a good-paying factory job, join the middle class, and live a good life.

Those jobs are drying up, as we enter a new economy – one that relies on information and knowledge. And those students who receive education or training beyond high school will be ready to join the new workforce. Here is what a college degree, even an Associate’s Degree from a community college means.

1. More Career Opportunities: That degree opens doors for positions for which no high school graduate can apply. And those positions lead to higher level positions. In fact, over a lifetime of work, college graduates can expect to earn anywhere from $300,000 – $500,000 more than high school graduates.

2. Better Perspectives: College grades have more experiences and contact with a wider variety of people through their college years. This makes them more able to “move” in lots of social circles that give them more connections.

3. Lower Unemployment: In general, college grads have lower unemployment rates and their periods of unemployment are much shorter.

4. Greater Job Stability: In general, college grad careers are more stable than those of high school graduates. With that stability comes a greater chance of career advancement as well. (www.collegeatlas.com/earn-a-college-degree.ht)

5. Lifestyles: College graduates tend to have more advantageous lifestyles – better homes, opportunities for their children, and a more satisfying financial situation.

All in all, the picture goes from bleak for a dropout, to better for a high school grad, and to best for students who have at least some post-secondary education. As forecasters look toward the future, moreover, the disparities among these three groups will grow.

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