Hand on heart: Do you want to get rich? Only very few people answer this question with "No" – After all, a lot of money can grant us a lot of wishes and give us a lot of freedom. But how do you actually become really rich – maybe even a millionaire?? And does it also have disadvantages, if one becomes really wealthy?
Wealth – what is it actually??
Sure, you’re rich if you have a lot of money – but can you be more specific?? From which sum is this the case? And can I feel rich myself even if I have less?
First of all, a official figure by which wealth is defined, there is no. According to the German Federal Statistical Office, you are officially considered rich if you earn more than double to triple the average income, but this also varies from state to state. A rough guide: If you have more than 4.000 euros net can already feel quite wealthy.
In addition there is Difference between income wealth and wealth wealthYou can be rich if you have a high monthly income, or if you have a lot of money in your bank account (usually the one causes the other).
The nice thing is: Since there is no fixed definition, you can decide for yourself, from which moment you are rich – you do not have to be a millionaire for it. There is a nice quote on the subject: "You can become rich by having more than you need – or by needing less than you have". Say: If you lower your standards, you can become feel very rich very quickly.
To explain: in the following we mean by "wealth" However, financial wealth, which is the "classic" official Meaning.
How you can become rich
The good news: Getting rich is easy. The bad news: getting rich is not easy. Because even if the individual steps of wealth accumulation are very simple, only very few people become really rich, because Discipline and perseverance are necessary, as many self-made millionaires can confirm.
You become rich by earns much money and spends little – and by being patient. If you want to become wealthy, you have to think in the long term and see the goal in the distant future. The compound interest effect ensures that your wealth builds up faster and faster from savings installment to savings installment.
While it helps if you make a lot of money, even the average person can with medium or low income can become rich, If they live frugally and put money aside, for example with a savings plan. The trick: You save money in everyday life and rather invest it in such a way that it increases – for example in shares, bonds or in real estate that you rent out. This is the Difference between spending and investing. It is not so much a question of the right investment strategies, but rather of starting as early as possible and keeping it up for a long time.
A tip: It is also helpful to Multiple income streams Build up. For example, a part-time job can be a second income stream, but passive income, such as from rental income or dividend payments from the stock market, also helps build wealth. The more side jobs or. income streams one has, the more money can already earn good returns again if you invest it in stocks, for example (be careful about investing in high-risk assets: If you want to get rich quick, you often get poor quick!).
Tip: Always continue your education, for example with distance learning or online courses. This way, you will always have new opportunities in life and the next step on the career ladder will certainly not be long in coming. By the way, experts recommend saving 50 percent of every salary increase immediately. This is how the increase "feels smaller, but your fortune increases as if by magic.
The fast track to wealth
Yes, through hard work and disciplined thrift one becomes rich, that’s all well and good – but isn’t there a shortcut?? Yes, clearly! As always in life, there is also one or the other fast and convenient way.
You can, for example Win the lottery or inherit a lot of money. Or you rob a bank or cheat on your tax return – which we can’t recommend, because it’s forbidden and immoral. Besides these possibilities, there is only one thing left for you: Earn more money, spend less money – this is the only way to build up wealth in the long term.
If you come across tips and tricks on the Internet or in other ways that will help you"guaranteed quick wealth" You should always be careful with promises (preferably without any effort). Such offers usually make only one rich – the person behind it.
Getting rich – the downside
To be rich and to be able to fulfill all one’s wishes sounds like a dream at first – but it is not financial prosperity also has its downsides. First of all, many people who have become wealthy realize that the phrase "money alone does not make you happy" is not true which is true – just because you can afford everything, you have certainly no longer enjoy life.
In addition, many rich people lack goals in life. worked for years to build up their wealth and then realized that they feel empty sitting in their golden cages. If you live only for your money, you must also always be afraid, that he is surrounded by envious people and false friends. So nobody should believe that a lot of money makes life more worth living.
The royal class of wealth is financial freedomWho is financially free, has in the classical sense "provided for" and can from his savings or. live on your invested money. Financially free people do not have to work for money, but can do what they want to do.
You want to know how much money you need to be financially free? You can calculate very simplyCount up how much money you really need in the month and take the number times 12. For how many years you want to be free? Multiply your result by about 20 if you want to know how much money you need for the next 20 years. Do the math for fun – the amount is lower than you initially think.