Getting rich slowly isn’t exciting. However, the get rich quick strategies often carry an uncomfortable level of a risk or are just flat out scams. Here's how you can get rich slowly: <ul><li>Focus On Income And Expenses</li><li>Invest In Cashflow Producing Assets</li><li>Stay Humble</li></ul>

How To Get Rich Slowly But Surely

<figure><img alt="" src="https://miro.medium.com/max/500/1*RIvJOwubLR3sjOh_FkyGCQ.png" width="680" height="397"></figure>Getting rich slowly isn’t exciting. It’s not as exciting as buying far out of the money stock options that become deep in the money by the time they expire. It’s exciting to turn a few hundred dollars into several thousands of dollars.However, the get rich quick strategies often carry an uncomfortable level of a risk or are just flat out scams. Options trading isn’t a scam, but you can lose everything if you’re not careful.Going from 0 to 6-figures in a few months sounds great, but I haven’t met anyone who’s done that.It’s possible for anyone to get rich, but it more often happens at a slow pace. The Millionaire Next Door captures how ordinary people can become millionaires. You don’t need to work at a high paying job. You just have to be smart with your money.Many of the “ordinary” people who become millionaires don’t get there through the lottery or chance. It’s not like their net worth suddenly spikes from $0 to $1 million, and the euphoria follows.Rather, it feels like an inevitable outcome after years of financial discipline and compounded growth taking its course. Getting rich slowly feels like a train reaching its destination. You know you’ll reach your destination eventually, but you are moving at a close to constant speed.Getting rich quickly feels like going into a spaceship. You might land on the moon, but you might also burn up in orbit. The thought of the spaceship ride is exhilarating. The train ride doesn’t conjure up as much excitement, but you do end up at your location.What does the process look like for people who want to get rich slowly but surely? There are a few factors to consider…<h1 data-selectable-paragraph="">Focus On Income And Expenses</h1>These are the two most important parts of getting rich slowly but surely. If you make more than you spend, then it doesn’t matter how much you make.However, if your income is low, you won’t have as much money left over to contribute each month. Raising your income while lowering your expenses is a common sense formula for building wealth, but what does that look like in practice.Building income can range from adding a side hustle to getting a raise or working at a higher paying job. Most people know of at least one way to grow their income that they’re currently not utilizing. Time is a big issue for some people who want to spend time with family after a hard day of work.While it’s more challenging for this group to embrace a side hustle, I challenge you to find time in your schedule you’re underutilizing. Do your learning in the car instead of listening to music. Wake up a little earlier or stay up a little later than everyone else to crank out another article. There are ways to make it work if you consciously look through your schedule and try to make it work rather than defaulting to “I don’t have enough time.”Younger people should focus on making money very early. Some people are turned off by this because of what young people went through during the Industrial Revolution (i.e., 8 year olds working at very dangerous jobs to help their families make ends meet), but there are better options today that revolve around purpose and exploration rather than hard labor in a hazardous environment.Regardless of your age, do something new that will enable you to make additional income. We all knew a variety of ways to make money. Creating training courses, writing books, creating a YouTube channel, driving people around, and renting your place on Airbnb are some of the many available options.If you’ve never taken a look at your expenses, chances are you’re wasting some of your money. As you go through your expenses and cut off the dead weight, you’ll eventually reach a point where you can’t trim down your expenses any further without significant deterioration in the quality of your life (i.e., eating unhealthy, low cost food).At this point, focus on maintaining your expenses as your income grows. A common mistake people make with their finances is raising their expenses and standards of living as their income increases. Just because you’re making an extra $20,000 each year doesn’t mean you should buy a bigger house. That’s just more rooms to clean.<h1 data-selectable-paragraph="">Invest In Cashflow Producing Assets</h1>Growth focused assets can provide higher returns, but they can also blow up if you’re not careful. Not only can growth focused assets sink if growth stalls, but even if growth continues at the same rate, frothy valuations can get in the way of further appreciation.Since we’re going for the get rich slowly but surely approach, we’ll focus on cashflow producing assets instead. Dividend stocks and rental properties are the two most popular cashflow producing assets. Practically all of the investors profiled in The Millionaire Next Door used one or both of these assets to generate cashflow and build wealth in the process.Dividend stocks are easier to get into as fractional shares make it possible to purchase any company for as little as $1. Most stocks distribute a dividend payment to their shareholders each quarter. You can then reinvest the dividend, so you’ll have additional shares for next quarter’s dividend payment.Not only will the compounding build up through dividend reinvestments, but it will also build up through dividend growth. It’s common for companies to raise their dividends each year, so you make more per share. A company that raises its quarterly dividend from $1/share to $1.10/share raised its dividend by 10% in one year.For rental properties, you can take the rent money and reinvest that into dividend stocks until you save up enough money to go after an additional property. Even if you’re not into being a landlord of multiple properties, you should at least consider house hacking.In house hacking, you buy a multifamily property and rent the other side. The rent payments essentially cover your mortgage, and you get to choose your neighbor in the process. You can also do a version of house hacking through Airbnb, which you can turn off at any time.<h1 data-selectable-paragraph="">Stay Humble</h1>You won’t find any Lamborghinis in the ordinary millionaires club. However, you’ll find plenty of old cars instead. Very few millionaires actually look like millionaires unless their celebrities. Even then, some of those celebrities are broke or on the verge of going broke but still want to sell a rich persona of themselves to the public.When you hit $1 million, that doesn’t give you permission to blow through your money. It doesn’t give you permission to abandon your financial discipline. If you approach the journey of getting rich as a journey you fulfill so you can then blow through more money, you won’t get there and will experience little to no satisfaction along the way.Ordinary millionaires understand when enough is enough rather than always going after the insatiable pursuit of more stuff. Ordinary millionaires also place a heavier emphasis on traveling and experiences rather than consumerism and the acquisition of stuff.Getting rich slowly but surely takes longer, but you won’t be filled with as much anxiety if you took on a high risk strategy. The get rich quickly but surely approach is not a matter of if you reach your goals, but a matter of when.

Getting rich slowly isn’t exciting. It’s not as exciting as buying far out of the money stock options that become deep in the money by the time they expire. It’s exciting to turn a few hundred…

moneyandinvestments

Money & Investments

Getting rich slowly isn’t exciting. It’s not as exciting as buying far out of the money stock options that become deep in the money by the time they expire. It’s exciting to turn a few hundred dollars into several thousands of dollars.

However, the get rich quick strategies often carry an uncomfortable level of a risk or are just flat out scams. Options trading isn’t a scam, but you can lose everything if you’re not careful.

Going from 0 to 6-figures in a few months sounds great, but I haven’t met anyone who’s done that.

It’s p ossible for anyone to get rich, but it more often happens at a slow pace. The Millionaire Next Door captures how ordinary people can become millionaires. You don’t need to work at a high paying job. You just have to be smart with your money.

Many of the “ordinary” people who become millionaires don’t get there through the lottery or chance. It’s not like their net worth suddenly spikes from $0 to $1 million, and the euphoria follows.

Rather, it feels like an inevitable outcome after years of financial discipline and compounded growth taking its course. Getting rich slowly feels like a train reaching its destination. You know you’ll reach your destination eventually, but you are moving at a close to constant speed.

Getting rich quickly feels like going into a spaceship. You might land on the moon, but you might also burn up in orbit. The thought of the spaceship ride is exhilarating. The train ride doesn’t conjure up as much excitement, but you do end up at your location.

What does the process look like for people who want to get rich slowly but surely? There are a few factors to consider…

These are the two most important parts of getting rich slowly but surely. If you make more than you spend, then it doesn’t matter how much you make.

However, if your income is low, you won’t have as much money left over to contribute each month. Raising your income while lowering your expenses is a common sense formula for building wealth, but what does that look like in practice.

Building income can range from adding a side hustle to getting a raise or working at a higher paying job. Most people know of at least one way to grow their income that they’re currently not utilizing. Time is a big issue for some people who want to spend time with family after a hard day of work.

While it’s more challenging for this group to embrace a side hustle, I challenge you to find time in your schedule you’re underutilizing. Do your learning in the car instead of listening to music. Wake up a little earlier or stay up a little later than everyone else to crank out another article. There are ways to make it work if you consciously look through your schedule and try to make it work rather than defaulting to “I don’t have enough time.”

Younger people should focus on making money very early. Some people are turned off by this because of what young people went through during the Industrial Revolution (i.e., 8 year olds working at very dangerous jobs to help their families make ends meet), but there are better options today that revolve around purpose and exploration rather than hard labor in a hazardous environment.

Regardless of your age, do something new that will enable you to make additional income. We all knew a variety of ways to make money. Creating training courses, writing books, creating a YouTube channel, driving people around, and renting your place on Airbnb are some of the many available options.

If you’ve never taken a look at your expenses, chances are you’re wasting some of your money. As you go through your expenses and cut off the dead weight, you’ll eventually reach a point where you can’t trim down your expenses any further without significant deterioration in the quality of your life (i.e., eating unhealthy, low cost food).

At this point, focus on maintaining your expenses as your income grows. A common mistake people make with their finances is raising their expenses and standards of living as their income increases. Just because you’re making an extra $20,000 each year doesn’t mean you should buy a bigger house. That’s just more rooms to clean.

Growth focused assets can provide higher returns, but they can also blow up if you’re not careful. Not only can growth focused assets sink if growth stalls, but even if growth continues at the same rate, frothy valuations can get in the way of further appreciation.

Since we’re going for the get rich slowly but surely approach, we’ll focus on cashflow producing assets instead. Dividend stocks and rental properties are the two most popular cashflow producing assets. Practically all of the investors profiled in The Millionaire Next Door used one or both of these assets to generate cashflow and build wealth in the process.

Dividend stocks are easier to get into as fractional shares make it possible to purchase any company for as little as $1. Most stocks distribute a dividend payment to their shareholders each quarter. You can then reinvest the dividend, so you’ll have additional shares for next quarter’s dividend payment.

Not only will the compounding build up through dividend reinvestments, but it will also build up through dividend growth. It’s common for companies to raise their dividends each year, so you make more per share. A company that raises its quarterly dividend from $1/share to $1.10/share raised its dividend by 10% in one year.

For rental properties, you can take the rent money and reinvest that into dividend stocks until you save up enough money to go after an additional property. Even if you’re not into being a landlord of multiple properties, you should at least consider house hacking.

In house hacking, you buy a multifamily property and rent the other side. The rent payments essentially cover your mortgage, and you get to choose your neighbor in the process. You can also do a version of house hacking through Airbnb, which you can turn off at any time.

You won’t find any Lamborghinis in the ordinary millionaires club. However, you’ll find plenty of old cars instead. Very few millionaires actually look like millionaires unless their celebrities. Even then, some of those celebrities are broke or on the verge of going broke but still want to sell a rich persona of themselves to the public.

When you hit $1 million, that doesn’t give you permission to blow through your money. It doesn’t give you permission to abandon your financial discipline. If you approach the journey of getting rich as a journey you fulfill so you can then blow through more money, you won’t get there and will experience little to no satisfaction along the way.

Ordinary millionaires understand when enough is enough rather than always going after the insatiable pursuit of more stuff. Ordinary millionaires also place a heavier emphasis on traveling and experiences rather than consumerism and the acquisition of stuff.

Getting rich slowly but surely takes longer, but you won’t be filled with as much anxiety if you took on a high risk strategy. The get rich quickly but surely approach is not a matter of if you reach your goals, but a matter of when.

How To Get Rich Slowly But Surely

How To Get Rich Slowly But Surely

CURATED BY

Related collections

More like this