How To Be Rich

Everyone on this earth want to be rich. But only few will be are rich. As you know only 5% people are rich on this earth. Why it is so difficult to be rich. It is not a rocket science but it takes dedication and willingness to be rich and live below your mean for some times until unless you become rich.

Here there are seven rules to be rich. If you follow this definitely you be rich on some day it may be in three years or ten years but there is guarantees for that.

1st Rule: Get Rid of Credit Card:

Yes, this is the first criteria to become rich. you may argument that everyone and rich people also have the credit card. But you need to consider the dependency on credit card. If you are using credit card for daily expense then it’s worry time. Here in this blog we are specify how you can be free from credit card. If you reach at that level when Credit card is just an fancy card for your pocket not for using for daily purchase, then it’s fine. Till then say to good bye to credit card.

2nd Rule: Free from all Debt:

Ram & Shyam who are preparing for mountain climbing. Ram has no baggage only required items. Shyam has 20 Kg baggage extra along with required item. Then gauss who will be success in mountain climbing. Definitely it will be Ram, why? because he is free from baggage’s.

The same case happened in our life, we want to be rich but along with all our DEBT- car loan, personal loan, home loan etc. To be rich we need to get rid from all the loan baggage. then we can climb to rich and that will be quick rather that a person who has all the loans.

3rd Rule: Make Emergency Fund:

You have read about a lots of blog, podcast related to emergency fund. It is same like, if you plan for mountain climbing. But without necessary item and weather information. Then think what will happened if rain happen.

Same thing will be happen in journey to be rich, we need to first save the Emergency Fund for at least for 3 months to 6 month along with Health and Term insurance. it will save you from rainy days. you can save it in FD or debt mutual fund or any other place, it’s up to you. For more details about Emergency Fund read this blog.

4th Rule: Have Your Own Roof

There are a lots of debate is going on these days the owning a flat on EMI or rented a flat or house. As per our understanding, we all should have at least one home or flat although it will be on loan. This will give you a satisfaction and peace of mind as well as provide a pride of your life that you have achieve something and it will help you in difficult time. So don’t worry just try to have one with your budget. there are defined a lots of suggestion and formula on internet and social media to buy home as per income. As per formula Home loan EMI should not be greater that 30%-40% of your income. But before that you need to also consider that all the monthly and yearly expenses will be coveted in 60% of your income.

5th Rule: Save at least 10% of your income

This is the first step to start journey to be rich. above 4 rules are making a base to start you journey to be reach. you need to save at minimum 10% of every month salary or income if more then better. If you can live with expense of 50K/Month, then you can also live with 45K/Month. So don’t think twice to save 10% of your income. And this 10% should not be use for any other activity e.g. home repair or decoration, kids’ Birthday party or any other emergency activity until unless the scenario is for medical emergency that is exception. you should keep away at least for a year, then go for the investment. This will give you the confidence to earn money and save money. If you have money and not depend on each month salary paycheck. you feel different and feel happy and proud.

6th Rule: Invest in yourself:

This is most important rule. We almost forgot to invest in ourselves. when anything comes to us, we place ourselves in last, first kids, family or other item. We forgot that we are also living and a human being. Ask to yourself with the robotic life in which we are living with 9-5 job. It’s our right to spend money on ourselves. We should spend 10% of our income on ourselves to better and feel confidence. If you buy a pen also for yourself you can feel a satisfaction. Just for a check you can go out alone and buy something only for you, it can be clothes, pen, diary, book or anything. Then tell us about your feeling.

So you need to invest in your self to be better person, and better professional life. Invest money in training, courses, certification, personal finance which will help you to grow, don’t depend on company. If you think company will pay you only then you will do the training or certification. This is wrong approach, If company provides then all good. But to grow yourself you need to proactivity involve in these activity, and think about next level. don’t depend on boss that he will give you opportunity. One thing need to be remember, Life is not always play fair. If you think that you are living in ideal world, then God may help you.

You need to spend 2 hours daily on yourself only. Be alone in these two hours and do the things which you want to be and for your growth and read financial books.

7th Rule: Invest wisely:

highly recommend to read book The Richest Man in Babylon. This is one of most important rule. If you do not invest wisely then you will never be rich. Again come to mountain climbing. To be reach on peak of mountain where you need to invest: a good guide, a good quality of necessary items- shoes, rope, hooks, specific food items, water bottle etc. If you not plan for this items and good quality then do you think that you can climb or not.

Same thing happen in journey for becoming rich. So need to invest wisely. Don’t blindly follow the rush. Not to invest all money in only on one segment but invest in all sections e.g. Real State, Gold, stock market, Mutual Fund, Bonds, FD, RD, Debt Fund etc. And also don’t do the business or invest with anyone who is immure or without experience it will harm you a lot and will be very hard to recover. For more details for invest wisely you can refer to wise investor blog.