Every now and then I get asked the question “How Do I Get Rich Quick?”
This is usually brought about by a friend receiving spam in their inbox or running across a video with someone saying they know how to time the market and they can help you become wealthy for a small fee…
Deep down inside they know it is B.S. but it sounds good. Too good, and they come to me and ask: Dude, what do you think about so and so. Is it possible? Could you look at it?
The Dude looks at it and then explains how the dude feels about Getting Rich Quickly.
- You need to be out of debt. Imagine how good you’d feel owning outright the roof over your head, the wheels under your feet and everything else you have.
- If you have debt and don’t have enough money saved to support yourself, you need to STOP SPENDING LIKE A MADMAN! I get it, we all need to have fun! The Dude likes fun, but the Dude has also lost everything he owned once before and knows what it is like to have nothing and the Dude doesn’t want you or him to go back there.
- Figure out what your budget is now and in the future. Yes, yes, the Dude knows you can’t predict the future but you can attempt to come close. Let’s say you spend 4500 a month now to live and you have a $500 car payment and a $1200 mortgage. If you payed both of those off in step 2 you’d only need $2800 a month to live on.
- Begin Saving BIG TIME! Sock everything you can away. Depending on when you will need the money will depend on where you put it so you may want to speak with a financial adviser. I would suggest picking one who charges by the hour or has a visible fee schedule. Otherwise the adviser will be selling you products that may or may not be in your best interest. Once you know your future is set, as set as set can be, you can move into more expensive endeavors and throw money around like it is nothing.
Let’s say you need $3000.00 a month to live (home, food, utilities, fun) and you will receive $1500.00 a month from SSA. Then you know you will have a shortfall of $1500 a month or $18,000 a year. Using simple math and not including inflation, you’d need 450k if you planned to live to 90. INFLATION IS HUGE!!! don’t forget about it when planning. **If you invested your money and made 5% interest with 2% inflation you’d only need 319k. If you kept your money in a savings account, made no interest and there was 2% inflation you’d need 566k.
The quickest way to get rich quick is to reduce the amount of money you need to survive. The less money you need the richer you are.
Thank you for spending some time with me,
almost forgot! here are a few good links:
Money Peach – He’ll help you conquer debt.