These debts could help you leverage yourself into a better financial situation, but you have to be careful. When I say “avoid debt” I generally mean debt that is bad and unnecessary. In general, that means debt that you take on to acquire a depreciating asset.
You open yourself up to making money mistakes that can set you back years. We see someone who has more than us, and we lose our focus on our own goals, wants, and happiness. This is a massive trap that can cause you to make bad financial choices.
And one of the secrets of getting rich isn’t hard work, good news for all of us slackers out there. You don’t have to be making six figures as a doctor, lawyer, or engineer to have a whole lot of money. When you buy through links on our site, we may earn an affiliate commission. Without focus, you will find you are constantly distracted from your own plans and strategies.
Every person who reads this can become an uniform. It’s various income streams, most of which could be considered passive income that accounts for about20% of the millionairesin the United States.
Think things like consumer spending or personal loans that you use to finance your lifestyle. Beyond that, you actually don’t need to stockpile cash to become wealthy. We talked about a few avenues for increasing income in this episode of the Beyond Finances podcast if you need some ideas of what you can do to earn more. You don’t have to be super frugal to achieve this.
Again, that list of actions is relatively simple and straightforward. It doesn’t take a financial genius to understand and implement them.
The other habit we need to cultivate in order to learn how to become rich is focusing. There is so much to focus on… and so often, we get distracted and give our attention to the wrong things. It’s not enough to get something right once, or to make a smart money move on occasion. You have to make good decisions and stick to positive actions every day. I’ve already told you there really are no secrets. It’s about the actions you take not just once or when you think about it, but every single day. It’s about the time and energy you invest in making the right decisions over and over and over again.
If you earn $10, 000, 000 a year, spending $5, 000, 000 a year isn’t unreasonable. Wealthy people aren’t the ones who are blowing all their cash on whatever they want to buy. In other words, spend less — way less — than you earn.