Each one of us wants to become rich, and why not? Money does not solve every problem, but most of the problems we face. So What does becoming Wealthy means? It means that one should have financial independence that he or she should be able to live life on his/her term. And should not be like struggling day to day life to fulfill one’s needs and wants. so we will discuss how to become rich – Crorepati?
Each one of us are capable of becoming rich, its just that we don’t follow basic rules and we don’t have a basic understanding of Money accumulation concepts, which can take us to new heights to be a rich.
So let’s start with basic concepts and rules to become rich. I have mentioned a few points below, through which I will try to make you learn that how can You become Rich?
I hope This will change your attitudes towards money, and after implementing it in your personal life, it will not just deliver the results but will also help you to manage your money more efficiently.
Just to make myself clear and to give credit where it belongs, I want to mention a Book called RICH DAD POOR DAD BY Robert T Kiyosaki. Many of my learnings are from this book, which is helping me in my personal life.
To begin our chapter on how to become rich? Let me tell you the story of a Rich dad, Poor dad. In this book, the writer tells the story of a boy with two fathers, rich and poor, to help develop the mindset and financial knowledge. I Will try to explain the moral of the story in a few points, As it depicts the mentality of most of us.
- Poor dad thinks money is the root cause of all evils.
- Rich dad believes lack of money is the root cause of all evil.
- Poor Dad believes we shouldn’t dream big as we can’t afford to buy things we want.
- Rich dad believes, we should dream big, and should find new ways to achieve things, due to this thinking, you will start thinking creative ideas to earn money.
- Poor dad asks to study hard so that you can get a job in a big company.
- Rich dad asks to study hard but start your own company so that you can give jobs to others.
So this is all about mindset, which helps you to take the right steps. Let’s start and understand What Rich dad was doing to become rich and how you can follow his methods to become rich.
lets begin with points to follow to become rich –
HOW TO BECOME RICH – CROREPATI
- Assets Vs. liability
- Increase your Assets
- Start Super Early
- Active Income Vs. Passive Income
- Increase Your Passive Income/ build stream of passive income
- Spend from Passive Income
- Invest In Yourself
- Become an entrepreneur/ Start a business
- Part-Time Business
- Silent Business Partner
- Meet influential people – Build Network
- Why people remain poor?
- Think like Investor, not consumer
What is Assets and liability?
To become rich, one must be financially literate; it doesn’t mean one should have a degree in finance. But should understand the basic concept of the Assets and liability. Its not the same, what you study in accounting.
Assets – Asset is the investment that helps you to make or earn money from it. E.g., if you buy a home and give it on rent, so it’s an asset.
Liability – Liabilities are the things which don’t help you earn money but make you spend on it.e.g: Car, expensive phone, branded cloths, doesnt make assets for you, so it’s a liability.
Just to make you understand will tell you the story of Ajay and Vijay. Both were in the same company and the same position, even the salary was the same. and how their methods of spending money changed their financial status.
Ajay used to buy expensive clothes, cars, costly mobile to have the feeling of luxurious. But Vijay used to invest his maximum money instead of spending on expensive things. Two years later, Vijay became rich as he made assets, and Ajay remained at the same place financially as he invested in liability.
How to increase your Assets?
Invest in things, which will earn money for you or become the source of income. So whatever gives you value is your assets. If you learn any particular skill, and it makes you earn money becomes your assets. Invest in different instruments: real estate, stocks, bonds, the mutual fund to increase your assets.
Start Super Early. HOW TO BECOME RICH – CROREPATI
The most essential and easy factor in becoming rich is to start super early. E.g., if you are 18 years old, whatever money you get as pocket money, and if you begin investing monthly and keep it doing for 30 years. You will get the real fruit of compounding interest and can accumulate great wealth with limited investment.
Do start Learning new skills early in your life, there are thousands of opportunities in the world to start anything as soon as you can, and you can grow.
What is the difference between Active income and Passive income?
- The income which differentiates rich and poor are the active and passive income.
- Active income means you are doing a job, and for your efforts, you get the money.
- Passive income means, whatever assets you have made, its giving you monthly income, that is passive income, you don’t have to work for it, your money works for you.
How to increase your passive income?
Create assets through intelligent investments and start getting income regularly from it.
Spend from Your passive income.
One should make such assets that give you passive income and should spend on your needs and wants from passive income. And your investment should happen from active income.
Invest in yourself. HOW TO BECOME RICH – CROREPATI
Invest in yourself is the most crucial factor. One should invest in oneself to learn new skills, things, which can make you valuable and create demands for you. When you excel in something, money flow starts. Educate yourself constantly.
Become a entrepreneur/ Start a business.
Most of the rich people are super-rich because they do business or is an entrepreneur, which allows them to earn exponentially. Be creative; build a new innovative, and disrupting the industry. Try to create a monopoly. Focus on big ideas that can impact people.
Part Time Business
If you are doing a job, try to do part-time business, which will allow you to create assets and grow.
Silent Business Partner – HOW TO BECOME RICH – CROREPATI
If you cant become active in a business, then identify enterprises where you can invest as an investor and remain a silent business partner, which will start earning for you.
Meet influential people – Build Network
This is another important factor many people miss on, start building a network and meet influential people, you never know, how it helps you to grow your businesses, carrier.
Why people remain poor?
It is because of the habits people have. To understand this will give you an example of people who are in three different categories economically.
Poor people – earn money – spend on daily needs (expense)
Middle class – earn money – spend on daily needs (expense) – spend on liability (car/ cloths)
Rich People – earn money – create assets – create passive income – expense
Think like Investor, not a consumer
People say when my income will grow, I will start investing, but when their income rises, so does the expenses, because, with increased revenues, the desire for spending on expensive things comes. So to avoid that, start saving and investing maximum whatever you are earning and make a habit. And most importantly, age is not a factor to do this. If you are young, start doing it, it will do wonders for you. And if you are grownups start investing and saving, you need to make future comfortable and less troubled.
Conclusion – HOW TO BECOME RICH – CROREPATI
It doesn’t matter how much you are earning, but how and where you are spending. That will make you stand financially. Money making is easy; one has to have the mindset to make it. I had read it somewhere that “Money is a simple math problem.” If you want to become a crorepati, just get 1Rs each from 1 crore people, and you will be a crorepati. Always believe that Money is a bioproduct of your choices. The more good investment choice you make, the more money you will make. So I hope you got the idea of HOW TO BECOME RICH – CROREPATI.
Happy Saving – Happy Investing – Happy Earning!