How to become wealthyIt's funny how people want to become wealthy but fail to take some basic steps to get there.
I have a friend (who shall remain nameless) who once told me "If I can just get to your income level, all my problems will go away and I'll be set".
I tried to explain that only a small percentage of I know become wealthy (even with an increase in compensation) and that making more money will not necessarily solve his financial problems. He was pretty adamant that he was right and I was wrong. A couple of years later, he reached the income level sought years before. I asked him "So, are all your problems solved? How's your bank balance?". He laughed and said I was right.
So what went wrong? Like so many others, he took the pay increase and spent it on a larger house, new cars and such.
The secret to becoming wealthy is pretty simple really. Live under your means. If you make $50,000 per year, try to live on $40,000 or less. If you can do that, you will be on your way to becoming wealthy.
So, what's the difference between being rich and being wealthy? Rich means you make a lot of money. Wealthy means being able to quit your job and live comfortably for a long period of time without having to work.
In a long term study, a significant percentage of wealthy were actually self employed. Others in the study were in jobs where the pay wasn't the tops but they were prodigious savers. It does help to be both a saver and self employed but there are many paths to reaching your financial goal.
So, are you on your way to being rich or being wealthy?
I am a CPA in San Antonio and provide bookkeeping, payroll, taxes and more. We offer a free initial visit and look forward to serving your business needs.
Richard J. Garcia | 10/07/2010