You don't need to earn a lot of money to become rich if you have healthy financial habits.
If you want to get wealthy, you need to consider three things:
<ol>
<li>Earn</li>
<li>Save</li>
<li>Invest.</li>
</ol>

How to get wealthy

It is natural to earn more over your lifetime. But a person can only earn more if they learn more. Further education enables an individual to provide more value.
Earning more is like a habit. Every year, we learn new skills and ways that will increase our earning potential. What matters is making progress, not the amount of money you make.

The habit of earning more

The key to the habit of saving is to save a bigger percentage the more you earn. When you start, you may only be able to save 10% of your income, but it is a mistake to commit to the same amount if you earn more.
However, it's a losing game to only focus on saving money. Life is too short to only focus on every penny you can save.

The habit of saving more

Consistent investing is essential. Investing as a habit will pay off in the long run.
It is most important to start with earning more, then saving more, then investing. People want to skip the first two steps and day-trade themselves to wealth, but most will only lose money by chasing quick money-making schemes. In the end, building wealth boils down to good habits.

The habit of investing more

<img width="720" height="471" src="https://i2.wp.com/dariusforoux.com/wp-content/uploads/2021/05/earn-save-invest.png?resize=720%2C471&amp;ssl=1" alt="earn-save-invest" srcset="https://i2.wp.com/dariusforoux.com/wp-content/uploads/2021/05/earn-save-invest.png?resize=720%2C471&amp;ssl=1 720w, https://i2.wp.com/dariusforoux.com/wp-content/uploads/2021/05/earn-save-invest.png?zoom=2&amp;resize=720%2C471&amp;ssl=1 1440w"><div> 4 min read</div>Earn, save, invest. If you want to get rich, those three things always need to be on your mind. In that order too.&nbsp;On a recent call with JPMorgan clients, the CEO, Jamie Dimon, talked about the key to successful wealth building. <a href="https://finance.yahoo.com/news/jamie-dimon-on-the-market-and-the-economy-130702586.html" dir="ltr">He said</a>:&nbsp;<BLOCKQUOTE>”Investing should be a permanent thing. Save, invest. Save, invest. Guessing at market tops, market bottoms – that is a complete loser’s game. I’ve never seen anyone win at it. The smartest investor in the world, Warren Buffett, would say that is not the way to invest.”&nbsp;</BLOCKQUOTE>It’s really not that complicated. You don’t even need to earn a lot of money to become wealthy if you have healthy financial habits.&nbsp;It’s fruitless to chase low probability outcomes like guessing market tops and bottoms, trying to day-trade yourself to wealth, or going after a lot of money at once with a get-rich-quick scheme.&nbsp;<h2>The habit of earning more</h2>While I love Dimon’s one-two punch of save &amp; invest, I also believe that increasing your earnings potential is a way to build wealth faster. While I don’t think it’s necessary to destroy your mental well-being by continuously chasing more money, I do think it’s natural to earn more over your lifetime.<a href="https://members.dariusforoux.com/wealth-strategies" rel="noreferrer noopener" dir="ltr">I believe that a person can only earn more by learning more</a>. The more we learn, the more value we can provide to other people and organizations. And that’s how we earn more.Now, does that mean you need to set unrealistic goals like, “I want to make a million dollars a year”? No. The problem with our society is that we get fixated on random figures.$100,000 a year is something a lot of people focus on. Why? It’s useless to work so hard and to sacrifice so much to earn a certain amount of money, only to get burnt out the year after.&nbsp;Instead, I see earning more like a habit. Every year, I want to learn new skills and ways that increase my earning potential. I don’t look at the amount of money I make. I look at whether I’m making progress. That’s what matters more than anything.<h2>The habit of saving more</h2>Over the past four years, I’ve been earning substantially more every year. But my cost of living has remained the same. I didn’t upgrade my house, car, or anything else. I have the same expenses, except I now earn more.So I also save more. This is the key to the habit of saving. The biggest mistake is to save the same amount of money if you earn more. When I started, I could only save 10% of my income because I didn’t earn that much.But every year, I could save more because I earned a bit more. I think it’s a losing game to only focus on saving money.&nbsp;Penny pinching often leads to a fear of spending money. <a href="https://dariusforoux.com/excessive-budgeting/" rel="noreferrer noopener" dir="ltr">I’ve seen this a lot in my family</a>. They are so afraid of spending money, that I have family members pushing sixty and have substantial savings but still live like they are in college.The first thing they ask when you talk about anything is, “How much did it cost?”&nbsp;Last year, my father bought a <a href="https://www.amazon.com/gp/product/B07S9KKGHQ/ref=as_li_qf_asin_il_tl?ie=UTF8&amp;tag=dariusforoux-20&amp;creative=9325&amp;linkCode=as2&amp;creativeASIN=B07S9KKGHQ&amp;linkId=6e6671f4dea8fe2306061dbfba3e8b88" rel="noreferrer noopener" data-amzn-asin="B07S9KKGHQ" dir="ltr">Traeger pellet grill</a> for about $1000. When my parents organized a family barbecue, the talk of the afternoon for some family members was how expensive these things were.&nbsp;Then, they ate a smoked burger and said, “Wow! This is great. Where did you get the meat from? We need to buy this too.”&nbsp;I said, “Dude, it’s just supermarket meat. The Traeger makes it special.”&nbsp;Life’s too short to save every penny you have.&nbsp;<h2>The habit of investing more</h2>The biggest mistake I’ve made with investing is that I was never consistent. I bought my first stocks in 2007; then I sold my stocks a few years later. I didn’t invest for several years. At some point, I put $5,000 in an S&amp;P 500 index fund. But I didn’t add any money to it for several years.But around 2017, I started applying the philosophy of <a href="https://dariusforoux.com/stoic-investing/" rel="noreferrer noopener" dir="ltr">Stoicism to investing</a>. I started looking at investing as a habit that only pays off long-term. I overcame my fear of losing money.And I started investing more money every year. Now, I invest every month. I keep six months’ worth of expenses in my savings account, have a rental property, and put all my other money in the stock market.&nbsp;But I started with earning more, then saving more, and then I started with investing. People want to skip the first two steps.&nbsp;They want to day-trade themselves to wealth. They want to buy real estate without putting money down. They take stock tips from people who run boiler rooms on TikTok or Reddit. While some people get lucky (and you hear a lot about those people), most of us will only lose money by chasing quick money.Ultimately, <a href="https://members.dariusforoux.com/wealth-strategies" rel="noreferrer noopener" dir="ltr">building wealth</a> comes down to our habits. If we have healthy financial habits, keep developing ourselves, and invest our money wisely without taking big risks, we will win.<h1>Want to improve your life and career?</h1>I'm continually researching ways we can effectively optimize our lives and careers. Join my insiders list to get my latest and most exclusive tips. I’ll also send you my Growth Kit, a bundle of 6 useful resources.<div data-element="fields" data-stacked="false"><button data-element="submit">JOIN NOW</button></div><img alt="🔒" src="https://s.w.org/images/core/emoji/13.0.1/svg/1f512.svg" width="13" height="13"> I value your privacy. 1-click unsubscribe.

Earn, Save, Invest: If you want to get rich, those three things always need to be on your mind. These are rich habits that change your life.

personaldevelopment

Personal Development

moneyandinvestments

Money & Investments

Earn, save, invest. If you want to get rich, those three things always need to be on your mind. In that order too.

On a recent call with JPMorgan clients, the CEO, Jamie Dimon, talked about the key to successful wealth building. <a href="https://finance.yahoo.com/news/jamie-dimon-on-the-market-and-the-economy-130702586.html">He said </a>:

”Investing should be a permanent thing. Save, invest. Save, invest. Guessing at market tops, market bottoms – that is a complete loser’s game. I’ve never seen anyone win at it. The smartest investor in the world, Warren Buffett, would say that is not the way to invest.”

It’s really not that complicated. You don’t even need to earn a lot of money to become wealthy if you have healthy financial habits.

It’s fruitless to chase low probability outcomes like guessing market tops and bottoms, trying to day-trade yourself to wealth, or going after a lot of money at once with a get-rich-quick scheme.

While I love Dimon’s one-two punch of save & invest, I also believe that increasing your earnings potential is a way to build wealth faster. While I don’t think it’s necessary to destroy your mental well-being by continuously chasing more money, I do think it’s natural to earn more over your lifetime.

<a href="https://members.dariusforoux.com/wealth-strategies">I believe that a person can only earn more by learning more </a>. The more we learn, the more value we can provide to other people and organizations. And that’s how we earn more.

Now, does that mean you need to set unrealistic goals like, “I want to make a million dollars a year”? No. The problem with our society is that we get fixated on random figures.

$100,000 a year is something a lot of people focus on. Why? It’s useless to work so hard and to sacrifice so much to earn a certain amount of money, only to get burnt out the year after.

Instead, I see earning more like a habit. Every year, I want to learn new skills and ways that increase my earning potential. I don’t look at the amount of money I make. I look at whether I’m making progress. That’s what matters more than anything.

Over the past four years, I’ve been earning substantially more every year. But my cost of living has remained the same. I didn’t upgrade my house, car, or anything else. I have the same expenses, except I now earn more.

So I also save more. This is the key to the habit of saving. The biggest mistake is to save the same amount of money if you earn more. When I started, I could only save 10% of my income because I didn’t earn that much.

But every year, I could save more because I earned a bit more. I think it’s a losing game to only focus on saving money.

Penny pinching often leads to a fear of spending money. <a href="https://dariusforoux.com/excessive-budgeting/">I’ve seen this a lot in my family </a>. They are so afraid of spending money, that I have family members pushing sixty and have substantial savings but still live like they are in college.

The first thing they ask when you talk about anything is, “How much did it cost?”

Last year, my father bought a <a href="https://www.amazon.com/gp/product/B07S9KKGHQ/ref=as_li_qf_asin_il_tl?ie=UTF8&tag=dariusforoux-20&creative=9325&linkCode=as2&creativeASIN=B07S9KKGHQ&linkId=6e6671f4dea8fe2306061dbfba3e8b88">Traeger pellet grill </a>for about $1000. When my parents organized a family barbecue, the talk of the afternoon for some family members was how expensive these things were.

Then, they ate a smoked burger and said, “Wow! This is great. Where did you get the meat from? We need to buy this too.”

I said, “Dude, it’s just supermarket meat. The Traeger makes it special.”

Life’s too short to save every penny you have.

The biggest mistake I’ve made with investing is that I was never consistent. I bought my first stocks in 2007; then I sold my stocks a few years later. I didn’t invest for several years. At some point, I put $5,000 in an S&P 500 index fund. But I didn’t add any money to it for several years.

But around 2017, I started applying the philosophy of <a href="https://dariusforoux.com/stoic-investing/">Stoicism to investing </a>. I started looking at investing as a habit that only pays off long-term. I overcame my fear of losing money.

And I started investing more money every year. Now, I invest every month. I keep six months’ worth of expenses in my savings account, have a rental property, and put all my other money in the stock market.

But I started with earning more, then saving more, and then I started with investing. People want to skip the first two steps.

They want to day-trade themselves to wealth. They want to buy real estate without putting money down. They take stock tips from people who run boiler rooms on TikTok or Reddit. While some people get lucky (and you hear a lot about those people), most of us will only lose money by chasing quick money.

Ultimately, <a href="https://members.dariusforoux.com/wealth-strategies">building wealth </a>comes down to our habits. If we have healthy financial habits, keep developing ourselves, and invest our money wisely without taking big risks, we will win.

I'm continually researching ways we can effectively optimize our lives and careers. Join my insiders list to get my latest and most exclusive tips. I’ll also send you my Growth Kit , a bundle of 6 useful resources.

I value your privacy. 1-click unsubscribe.

Earn, Save, Invest: 3 Rich Habits for Life - Darius Foroux

How to get wealthy

The habit of earning more

The habit of saving more

The habit of investing more

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