How to Get Rich Easily

Jun 19, 2010
Santosh Das

Money - Santosh Das

Learn how to get rich with these simple tips.

Most people want to get rich quickly and easily. Judging by their behavior, human beings have an obsession with wealth. Politicians promise to create it, popular magazines are filled with gossip about those who have it, and the average person spends much of their adult life trying to obtain it. Human beings are creatures obsessed with money, partly for what it can buy, but also as a thing of value in itself.

But most people misunderstand money. They don't really know how to obtain it, or how to hold onto it once they have it. This article explains simple tips for getting rich and a formula to make money.

The Harder Way to Get Rich

Before learning how to get rich easily, it is important to learn the harder ways to make money.

One of the hardest ways is to be born into it. Life can be sweet if one enters this world as a Hilton, a Gates or a Windsor. But 99.99% of the population on earth aren't that lucky to win that kind of a lottery.

And speaking of lotteries, gambling is another very difficult way to get rich. Sure, some people buy a lottery ticket and win big, but most don't. One can gamble his entire life and most likely he will end up broke rather than wealthy.

The same fate awaits the majority of musicians, software company founders, sports people and website creators. For every Google that makes its owners billions, there are a million websites that lose money. Creativity is the most fun and rewarding way to get rich.

The reason the media raves about and idolizes those who've built wealth through creativity is because they're so rare. People don't hear about the vast majority who wallow in obscurity and poor pay, because they're not interesting. "Young genius makes $1 billion from website" is a great headline; "Ten thousand young geniuses make nothing from their hard work" isn't.

Easy Ways to Get Rich

Here are some simple ways to make money:

Get a well-paid job: This is a reasonable amount of work, and takes a few years, but it's a virtually guaranteed way to make a good income. If they're willing to put in the work, almost any intelligent person can get a job paying $100,000 or more within the space of a few years. While it's not easy, it is by far the easiest and most likely way to secure a good income.
Get good tax advice: In most developed countries, the average worker pays around 30% of everything they earn straight into the taxman's pocket. While taxation is necessary to fund the good things governments provide, it is important to pay just the fair share. Anyone who is serious about building wealth should get a good accountant who understands how to legally minimize the tax bill.
Save 20% of earnings: Plan to save money. Put 20% of total income into a savings account. Many banks can do this automatically for their customers. This can save a lot of money over a period of time. This savings can later be invested in a small business. There's a saying in economics, that "expenses rise to meet income." This means money that's easily available is certain to be spent. That's why most people's paychecks disappear before their next payday. They get used to having a certain amount to spend, and habitually run down their bank account.
Conservatively invest the funds that build up in the savings account: Once a month, go into the savings account and divide the money by investing it into the three core conservative assets: shares, property and cash. Open a mutual fund account for shares, a property fund for property, and a money market fund for cash. Look for share and property funds that invest in a broad range of assets and most importantly charge very low fees. An index fund is ideal for shares. An index of property funds is ideal for property. Put an equal amount into each account. This will diversify against risk in any one particular asset. For youngsters, this rule is a little bit flexible, allowing them to take a little more risk and put more into shares and property.
Reinvest any income from assets straight back into buying more assets: Mutual funds and property funds pay dividends. Money market accounts pay interest. Don't spend this income. Select the option to have it reinvested into the fund that generated it.
Never touch these funds: The business press, like the mainstream press, loves a crisis. "Shares to skyrocket" or "Property to plummet" headlines will sell many more copies than "Things to continue steadily." All markets go up and down. Every day, some speculation will be published about some crisis or opportunity. Just keep putting the 20% into assets. Sometimes they'll go up and sometimes they'll come down in value. But over the long term, they'll almost certainly go up.
Wait a decade: Do everything outlined above to get rich. Follow these tips and one could theoretically be in the top 20% of wealth holders. Wait another decade and one can be in the top 5%.

Getting Rich

The above mentioned ways and tips are not "get rich quick" schemes. Making money takes time and hard work. It won't happen overnight, but it will happen.