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Ten Ways On How To Become Rich

To become wealthy, you need to master how your money will work for you

Photo by Alexander Mils from Pexels

Whenever I speak in front of people, I always ask them whether they want to be rich. 

Of course, many said YES!, but if I asked them what sacrifices they need to accomplish to do wealthy, certain hesitations lingering during the seminar; with my observation over the years, these are the best advice I can give financial advisor.

Avoid poor mindset, embrace a growth mindset – If you are poor today, it might be because of your parents, but let’s not blame them. If you die poor, it’s because of you. 

Everything starts with a proper mindset. Your behavior towards money might be a combination of nature and nurture within your family.  

Those who got fix mindset are not improving and unwilling to go through challenges, while those who have a growth mindset treat every situation as a game that they need to win to move to the next level. 

If you look at Warren Buffett and Bill Gates or every Billionaire entrepreneur right now, they are obsessed with growth. They don’t want to be stagnant. When you stop learning, that’s the time you hinder your growth. Right now, what are the challenges you are taking in?

Change or improve your network – There’s a famous saying* that changing your network will change your net worth. 

Indeed that is true to my life; when I got out of the corporate job and join a community of go-getters, it gradually improves my behavior due to Social pressure. 

It improves my level of thinking and habits. It gave me a new challenge instead of just being satisfied with what I have during that time. Back then, I was lost and going in all directions. 

It’s not a comfortable situation for me at that time, but when I changed my network, I also multiplied my compensation or earnings 5x in a year,

Create multiple income streams – I’ve been teaching about this since 2018. 

I noticed that many people who followed my instructions are now doing financially well compared to those stuck with just one income. I spoke to millennials who are BPO Hoppers and now have e-commerce business on the side; they feel they have more liberty as they build their empire. 

They also think that they have something in control. I have a client who is now earning 1.5 Million pesos in a month from their e-commerce business while her day job is just giving her 350,000 in a month. 

She mentioned that she can now resign anytime without any hesitation. 

Build and give value to your connections consistently– This is a powerful combination that will yield you a better life. 

Are you jealous of those Instagram models and Vloggers like the former Lloyd Cadena? The reason why they are thriving is that they are authentic and consistent in giving value. 

Those followers are also enjoying all the content they are offering; that’s why in the age of social media and digitalization, how can you add value to your ideal customers or clients? 

Master your craft and solve a problem– Melanie Perkins, the Canva Founder, did such a fantastic job; from her frustration in teaching people about Photoshop and InDesign, she could think about a tool that can shorten your learning curve in terms of designs. 

Right now, she’s one of the youngest billionaires and a proud Filipina Australian. What are you trying to solve right now?

Never spend on too many liabilities – I’m sure this one can kill your finances right away; this can bury you in consumer debts, and you will never reach your most actual potential. 

Dave Ramsey, a familiar voice in the world of finance, mentioned that if you are spending more than 30% of your monthly income on liabilities, you might soon be in neck-deep or be on the brink of financial disaster. 

If you will calculate your net worth or cash flow today, how many percent do you allocate to pay for your liabilities?

Invest in yourself – Do you know that Lebron James is investing in his body worth 1.5 million dollars in a year, according to Business Insider. As he entered into his 17th season, he’s playing at the top level. As of this writing, he’s competing to get his 4th NBA Championship Ring. 

If you are saying that you are not Lebron James, here’s my challenge for you, look at your cash flow and how much do you allocate in investing in your professional growth? 

Do you have an allocation every month or every year? 

If you are serious about becoming wealthy, you must invest first to you before any asset class because if you take care of yourself, you can take care of your business. When was the last time you look at your cash flow and take a quick look at your budget?

Invest in the different asset classes – Saving money will not be enough; you need to go to an advanced level now. As of today, there are 13 trillion pesos in the bank. 

Filipinos are afraid to take a risk but love easy money; that’s why many people are getting deceived by many fraudsters nowadays. Humans are naturally greedy; that’s why we chose the highest returns without being too cautious. 

Asset classes are like Mutual Fund, Life Insurance, Gold, Stocks, Real Estate Property, New Businesses, Or IPO. Not all people will like to invest in Stocks; the same thing goes with real properties. 

To become wealthy, you need to master how your money will work for you. Don’t just give the money to a stranger. Be an active investor, not a passive one.

Manage your emotions – Greed and ignorance will cost you financial disasters. As you learn how to manage your money, you need to understand your triggers. 

For example, what triggered you to spend so much money from the Lazada and Shopee SALE? What moves you to buy that Red SUV? What made you splurge your money when you saw that brand new shoes?  

You must identify the culprit why you spent your hard-earned cash for that experienced or those items as you reflect on it. 

Master allocation – As you grow older, you must have a system to manage your finances. I use 40/30/20/10 (40% for expenses, 30 Investment, 20% insurance, 10% Tithes. 

These numbers are constant for me to understand my ceiling. If you don’t have a fixed system that’s working, you will end up losing all you per funds and ask yourself every month, where did you put all those hard-earned cash. 

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Written By

David helps people set and achieve their long-term financial goals by educating them about investments, asset allocation, risk management, retirement planning, and estate planning. His role as a financial planner is to find ways to increase the client’s net worth and help them accomplish their financial objectives. Follow him on LinkedIn.

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