Nearly all people want to become rich faster, but most of them do not know what they need to do for it. Combination of luck, patience and skill are the most important aspects that help one to become rich. If one enters into a monetarily beneficial career, handle the money so earned carefully and invest it wisely in good businesses or saving schemes, he can be sure of becoming rich at a later date. It is not an easy task to become rich. But with skillful decision making and perseverance it is possible for anyone who earns a good sum of money regularly to become rich after some reasonable time. Let us try to understand some important tips which can be useful in making a person rich.
Put money in the stock market
The money left after meeting the daily expenses like food, dress, social and family needs etc can be invested in bonds, stocks, or in other investments so that you will get annual return on investment sufficient enough to keep you moving in your retirement. For example if you can invest one million dollars where you get 7% return on investment, you will get $70,000 per year as your returns. This will be enough to lead a happy retired life. Similarly, investing in stocks is also a good option to get rich and not to misuse your earnings. Sit calmly without paying heed to the ups and downs in the market. If you have invested wisely it will become very useful for your future life.
Save money for using in your retired life
It has been found that fewer people are cautious about their retirement life and saving money to make their retired life happy. Some people are not bothered about their retired life as if they think they will never retire at all. Retirement plans like individual retirement account or 401 Ks with tax benefits for the members are suitable for saving money for retired life. Do not rely too much on social security as it is suspected that it will not be available in the current form for long time as congress is planning to make radical changes in it.
Another useful option for retirement savings is Roth IRA in which an individual can save about $5,500 per year which will be added up progressively and compound interest will accrue year after year. The money you withdraw from this savings at the time of retirement will not be subjected to any tax deduction because you have already paid the tax for this amount at the time of earning and investing itself.
401K is an account operated by the employer wherein the employee is allowed to remit pre-taxed contributions. Make use of this scheme and invest as much you can so that your retirement life will become happier and more comfortable.
Invest in real estate
Investing money in assets like properties that can be rented out or in land in potential areas where there is good scope for home development etc are very good business activity for people who want to become rich by utilizing their income in a profitable and productive manner. Like in all other forms of investments there can be dangers in this type of investment also. However, many people have been found to do will with real estate investments.
Do not invest money on good that depreciate rapidly
Investing money on automobiles is a foolish activity that will only lead to wastage of valuable money. For example if one invests $50,000 for buying a car, it cannot be considered as a wise investment because within five years the worth of the car will be lower by 50 % at least.
Do not spend money foolishly
It is very difficult to make a living in the present world. It is even harder to spend the money earned foolishly. Try not to spend money on financial black holes. Some important things which you have to avoid in your bid to become rich are given below.
- Avoid lottery tickets and casinos.
- Avoid cigarettes and alcohol
- Avoid candy at cinema hall or drinks at clubs
- Avoid plastic surgery, tanning booths and Botox injections and try to age gracefully.
- Avoid first class plane tickets.