You are here and reading this page because you want to be and know how to become rich. I want to be rich and we all want to be too. To be rich is a legitimate and noble aspiration and life’s pursuit because wealth is an enabler. With a lot of money, you can live your dreams, own a palatial home, enjoy exciting holidays, contribute something positive to the society and even focus on spiritual progress with a peace of mind.
Oh! It is wonderful to be rich, but can I?
Yes, we all can become rich.
It is simple.
It is easy, too.
Alright, I got it.
But even though I know what being rich is, what exactly is the meaning of rich? How to become rich?
Come, let us begin this exciting journey, together.
Meaning of Rich
One dictionary defines the word rich as “having a great deal of money or assets; wealthy”. Cambridge dictionary defines the word as “having a lot of money and possessions”. Merriam-Webster describes the word rich as “having abundant possessions and especially material wealth”.
If you break down the various definitions you will observe there are key components: a lot of, money and assets.
Therefore we can conclude that to be rich we should have plenty of money and assets.
The definitions seem to suggest that a mere possession of abundant assets is sufficient to make you rich.
But I am not fully satisfied with that suggestion. Something important is missing.
What could it be?
Ah, I got it.
The crucial missing words are cash and income.
Mere possession of loads of valuable assets is not enough. You should complement the assets with profuse and regular streams of cash income. These streams of income will help you maintain the assets and help you sustain a comfortable lifestyle. They will s also help you create more valuable financial assets, capable of generating further more cash incomes.
Without cash income people even if endowed with plenty of assets could be reduced to poverty. In India, there are a number of royals and minor nobility called zamindars who are virtually living in penury. Of course, of late, many of them have learnt to convert their properties into heritage hotels, thereby creating sustainability for themselves as well as their estates.
Is Having a Highly Paid Job means I am Rich?
Unfortunately, the answer is ‘NO’. Your highly paid job is certainly a good beginning and a great advantage to your becoming rich. But merely having a high paying job does not make you rich.
Because your high paying job will pay you the active income, only as long as you are healthy and active. It will not pay you if, God forbid, you die or become incapacitated to work.
We must understand the difference between us, the hard working middle/ upper-middle class folks and the rich.
And what is the difference, please?
Besides their active or working income, the rich earn large amounts of non-working, passive income.
The rich don’t work for money, they make money work for them!
Therefore, the final meaning of ‘Rich‘ is having abundant material assets and have many and copious streams of passive income.
Oh, I see.
Why Should You Be Rich?
If there is one good reason why we all should aspire to be rich is that money is an enabler; as rich people, we can live our dreams, do many things for ourselves, for the community around us and for the world at large; which for those who are not so endowed maybe impossible.
Besides being an enabler, there are a few more reasons to be rich, let’s examine them:
1. Wealth is freedom, liberation. It is a wonderful achievement to be free. The abundant money will make you financially free.
2. You can escape the drudgery of work. Of having to work to pay the rent, mortgage, taking care of your family, educating the children, and so on. You may do all the work you love to do; at your own pace and pleasure, but it will be cause you love it and not be cause you have to support yourself and your family.
3. You can retire early and travel to all those wonderful destinations you always dreamt of.
4. Wealth will boost your self-worth. You will feel you are an accomplished person, an achiever.
5. You can monitor your progress in life, as your assets grow. Keeping a track of progress is essential for improvement. That is why we have score boards on the sports field.
Is it a Sin to be Rich and Wealthy?
Many of us seem to feel a sense of guilt in aspiring to be rich. Is this feeling of guilt justified? Is it a sin to be rich and wealthy?
I don’t think so.
No religion or scripture has forbidden wealth.
In India, Hindus worship Sri Maha Lakshmi as the goddess of wealth. Because Lord Vishnu has her as his consort, his abode, the Vaikuntham overflows with riches, and once when Lakshmi left him in anger, he loses all his wealth and becomes a pauper.
Yes in India many faiths prescribe the practice of austerity and renunciation as tools for spiritual progress. I think that one Christian sect, the Pentecosts also practice austerity.
During the pre-independence times, Mahatma Gandhi shunned the western attire and donned the clothes of the poor masses. This he did more as an attempt to identify the Congress party with the masses – it was till then perceived by the masses as the party of western educated, liberal, elite. I think he never tried to glorify poverty as a virtue and wealth as sin. However, Indians seem to have misunderstood him and a wrong notion that poverty is a virtue and wealth is a sin seems to have deeply etched in their psyche.
However, I am sure and I can reassure you that it is not immoral to be rich. We are all entitled to be rich and wealthy.
Ah, fine, I got it. But how to become rich?
How to Become Rich?
We have already seen that in order to become rich we should have many streams of passive income. Dividends, interest, royalty and rent are a few most popular examples of passive income. So, in order to become rich, we need to start generating passive incomes. In addition to income, we also need to learn a few more tricks. We will see all these hereafter.
Investing is the most common, popular and easy way to generate passive income. Investments produce two streams of passive income; dividends (which are generally tax-free all over the world) and interest.
To be an ‘investor‘ is considered to be the highest occupational status; right on top of all the other.
When you become an investor you can make the most brilliant and accomplished CEOs like Warren Buffett, work for you. And you can accomplish this by simply buying a single share at perhaps a dollar.
There is a sure and safe investing path called ‘value investing‘
This blog will teach you to become a value investor and create wealth and riches.
So please don’t worry, become an investor.
Have a Simple Lifestyle
Reducing unwanted expenses and maintaining a simple lifestyle is an equally powerful way of becoming rich. Advertising agencies and marketers out there are employing all the tricks at their disposal to make you spend on luxuries. Please allow them to fail. Splurgingis a huge stumbling block on your path to wealth. Low lifestyle costs and high passive income is the only formula to financial freedom and riches.
Become Debt Free
Passive incomes work for you to make you rich even while you are asleep. Similarly, interest and fees on debt work against you and make the banks rich even while you are sleeping. This is a powerful lesson we all should learn early in life.
Repay any existing loan as expeditiously as possible.
Destroy your credit card, immediately.
Live a simple and debt free life.
This is a simple and yet powerful way to become rich.
When is the right time to start to Become Rich?
I am sure you are already on the beautiful path to riches. Even if you have not begun yet, don’t worry. Start right now.
The journey is long, but as I said earlier, it simple and easy.
But even if you had missed the bus, you still achieve impressive results in 20 – 25 years.
Finally, please do not delay. Do not waste time thinking whether you had missed the bus. Just start Immediately.
To become rich is a universal and legitimate aspiration. Money is a great enabler. With plenty of money, you can live your dreams and also give back to the society. To be rich is perfectly moral. Though it takes some time, to become rich is easy. Invest, start early, lead a simple life and be debt free. These are the steps to become rich. Lets all follow this path and be rich.