It is less about who you are — and more about what you do
I live in a condo located within the central business district. And I take my morning coffee with a view of people rushing to their respective office buildings.
Every time I have that morning sip, I look into each face walking. Some look numb, while others appear worried.
Most of them look like robots hurrying their way to avoid something — perhaps elevator traffic, a control freak boss, or an email reminder of somebody all up in your face to submit the report they need.
Whatever it is, I am sure it is not a great feeling — I can relate to all these people rushing — and trying to catch something.
Read also: Why financial independence is easier to reach every year
Finding the way out
And when I look into myself — and other people, it feels blah at some point. Work has always been a blessing to me, but at this stage, I realized that being in this rat race will never make me in control of my life — and rich.
I want to break the barriers — and grow exponentially — then satisfy the big bosses and please them every day to get a promotion to increase my salary.
Enough of this.
It is time to start something — but I know it is not easy.
Can you feel me?
Understanding net equity
Many people want to be rich, but very few are.
Why is this?
There are several reasons, but one of the biggest is that most people never understand what it takes to build wealth.
They think it is all about making a lot of money when in reality it is about increasing your net worth — and not merely working income.
Here is how it works: your net worth is the total of all your assets (property, savings, investments, etc.) minus any debts and other liabilities.
To get rich, you need to focus on increasing your net worth.
Executing the basics
The first step to increasing your net worth is knowing where your money is going.
Make a budget and track your spending for at least a month to see where your money is going.
Once you have a good understanding of your spending patterns, you can make adjustments to ensure that you are spending in alignment with your goals. For example, if you want to save more money, you might need to cut back on unnecessary expenses like dining out or shopping.
I started with an excel spreadsheet in 2006 to record and track my expenses. Even a gum or mint costing me a cent goes straight to my expense record.
Bet on you
Invest in yourself. It means taking the time to learn new skills and knowledge that will help you earn more money.
I pay for courses — and try them out. If it works, I keep doing it. And when I realize — there is a better — and faster way to increase my wealth, I drop or re-allocate a better portion of my time, energy, and money to promising moneymaking vehicles.
It could also mean investing in your health by eating healthy and exercising regularly. The better you feel, the more productive you will be at work and in life.
Equip yourself — and prepare for the long game.
Manage to spend on liabilities masking as assets
Another way to increase your net worth is by investing in assets instead of liabilities.
An asset puts money in your pockets — such as a rental property or a business venture. A liability costs you money, such as a car payment or credit card debt.
It is vital to focus on building assets because they will help you generate income and grow your wealth over time.
Observe simple logic, buddy
You need to start living below your means if you want to get rich.
It means spending less than you earn and investing the difference. It might mean making sacrifices in the short term, but it will pay off big time in the long run.
When you live below your means, you will have more money available to invest in assets, which will help you grow your wealth over time.
This simple principle allowed me to purchase property assets while deferring myself to buy cashflow-draining stuff like an American SUV back then.
I am happy to experience them both.
As Dave Ramsey says — If you will live like no one else, later you can live like no one else.
Read also: 10 must-do’s if you’re in financial trouble
Give yourself a raise.
One of the best ways to increase your net worth is by giving yourself a raise.
If you’re unhappy with your current salary, do whatever it takes to earn more.
It could mean finding ways to make more money through side hustles or investments. The more money you can bring in, the sooner you’ll reach millionaire status.
These are a few tips to increase your net worth to become rich. It’s important to remember that wealth building takes time and patience.
There’s no magic pill or overnight success story to becoming wealthy.
But if you’re willing to commit to changes in your spending and saving habits, I’m confident you’ll be well on your way toward reaching millionaire status.
CONTRIBUTED BY Dennis De Silva
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