What is the secret to becoming wealthy?

Answer 1

Don't buy thing you don't need, don't use credit unless you can pay it off, Read the book, America's Cheapest Family. Oh, and when you do it, get it from the library.

Answer 2

I ditto Ed M's answer: There is no luck about it, by the way.

It is planned out.

Everyone who answered this question is capable of becoming rich.

Look up "Think and Grow Rich" by Napoleon Hill. It is a great read to understand that there is no secret to it. You have to believe in yourself, first.. Then, its hard work, building positive relationships, and providing a service for people with a unique product or service that is in demand.


Another great online Flash video is "What the wealthy, middle class, and the poor buy on pay day" - Google it until you find the free flash version.

Its a real eye opener on the fact that what you earn is in direct relationship to the knowledge you keep.

Answer 3

The secret to becoming wealthy is hidden in your heart. If you are doing what you love doesn't that make you wealthy. Is it a big house, shiney new car, money to spare and money in the bank the definition of wealthy? Or, is wealthy loving who you are and loving what you do?

Answer 4

All of the above are true. The most important thing to keep in mind however is that "rich" is a subjective term. If you want to gain a degree of financial independence, retire early, while maintaining a middle or upper-middle class lifestyle, you can do it if you are: a) patient, b) you invest/save religiously, and c) live on a budget. If by rich you mean that you want to live in a 10,000 sq foot house and drive a Ferrari, you may want to get a little more "entrepreneurial".

If you want to be comfortable, not live paycheck to pay check, retire early, and you plan to live a normal, but not extravagant lifestyle, the things you need to do are pretty simple:

1) Don’t take on foolish debt - this means credit cards, car loans, etc. Personally, I don't buy ANYTHING that I can't pay cash for, except for my house. Cars depreciate and they are a huge waste of money. Big screen TVs, fancy appliances, etc. are also all huge financial drains. If you finance them by piling up debt on plastic, you will further drain your cash flow and long term savings potential through interest payments. General rule... if you can't pay cash, DON'T buy it!

2) Use a qualified retirement plan -- if you can get a 401k or similar retirement plan through work, fund it as aggressively and as early in your career as possible. Check out a financial calculator to show the benefit of tax deferred savings and compounding interest. If you don't have this option, set up an IRA. Retirement savings should be your #1 long-term financial goal... PERIOD!

3) Make a budget, and stick to it! Write down what you spend every month and include EVERYTHING. Separate wants from needs... mortgage, electricity and water are all needed expenses, $3 lattes at Starbucks are not! Trim the unnecessary expenses to free up extra cash flow.

4) Pay off debt first, and then invest. High interest credit cards come first, then cars. Once these are paid off, use that cash flow to invest. Your first savings should go towards funding an "emergency fund" Most planners recommend a fund with 3-6 months of expenses. Before you put money elsewhere, get at least 3 months expenses in that account and DON'T touch it, unless there is an actual emergency need (loss of job, health issue, etc.) After that, if you'll need your savings for something soon, like buying a house, keep your money in a money market or savings account. There are many online accounts that offer no minimum deposit and interest rates better then 4%. If you are saving for 10+ years out, consider an automatic investment plan with a large brokerage firm and stick it in mutual funds. If you save consistently, this money will grow quite large over time.

If you want to be uber-rich, unless you make a huge salary, the above is not going to work. The percentage of Americans who have a net worth of $5mm or greater are predominantly made up of entrepreneurs! These are people who started their own business, worked hard at it (often for years), quite possibly failed at their first attempt(s) at being the boss, and eventually after a ton of work made it big. There is no magic formula to success. It requires a lot of hard work and almost never happens fast.

Answer 5

1) Save more.

2) Spend less.

3) Build a better mouse trap.

Good Luck

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Answer 6

Real wealth always involves some type of risk. If you are doing what everyone else is doing, you'll never be truly wealthy. Also, do what you love.

Answer 7

Sometimes it's simply the luck of the draw, but you have to get into the game. Find a good financial adviser (check references) . Stay away from most brokerage firms as they usually have their own product to "sell" and it's not in your best interest to buy.

Answer 8

Water

Answer 9

The Law of Attraction.

If you wish it and truly believe that you will be wealthy, you will

Answer 10

Finding a great company to earn you some money, then investing it in the proper areas and planning for retirement. Jennifer