Getting rich is an attitude

Growing rich is not an isolated fact, it doesn't happen overnight - unless you win the lottery - Growing rich is the attitude of getting more out of life by being wealthier than yesterday but less than tomorrow. It is like doing exercise, you feel good by doing it. So why should you stop?

If you doubt if you want to be rich, I suggest you read the "What should I be rich for?" chapter before you keep on reading. I'm pretty sure after reading this chapter you will discover you want to become rich.

Finding the "growing rich" attitude

The "growing rich" attitude could be defined as: increasing income and reducing costs. "Yeah rrright...". I know it sounds simple, but the principles are simple. And its implementation too :)
You only have to be willing to stick to rules that will make you grow richer, that may mean some sacrificies but I promise you will get a recompense for it.

The two books that made me discover the "growing rich" attitude were Rich Dad, Poor Dad and The Richest Man in Babylon . What I describe in this chapter is a very personal summary of what I learnt from these two books, but these two books are worth having and reading by your own. They are written in a really plain way that goes straight to the point and gives a good feeling of the growing-rich attitude.

I suggest you try it for a month. It won't hurt you, and you will find out if you are willing to take the commitment of growing rich. Let's get started!

Income - Expenditures = Available Money

By increasing income and reducing costs we want to increase the available money that we have, that means money we can keep.

At this point is when the growing-rich attitude comes into play. We want this available money to work for us, we want this money to generate more money. We don't want to spend it, we want to invest it. An investment is the use of assets to earn income or profit, so what we will do with our money is buying assets that will generate profit. The big question is: Which assets should I buy?

When thinking about investing your money in a certain asset there are two factors you should always take into account: risk and return.

- Risk: What's the probability that this goes wrong and my investment loses value instead of increasing it? And if it does, how much will I lose?
- Return: what is the potential win?

The objective is to find low-risk high-return investments (I know this sounds scary if you haven't done it before, but you can be sure you are afraid of the unknown, not of the investment). They are rare and hard to find, but when the opportunity comes across you must have courage and available money. Don't despair, wait for the right opportunity. Until then put your available money in your savings account.

In Conclusion, the growing rich attitude can be defined as the search for low-risk high-return investments with the available money kept thanks to reducing your expenses and increasing your income.

Where to look for low-risk high-return investments

There are plenty of investment opportunities out there. If you don't see them, it's probably because of your mindset. After reading Rich Dad, Poor Dad I stopped thinking like an employee, and I started thinking like an entrepeneur, like my own wealth manager, and therefore I started seeing the investment opportunitties around me. If you are serious about growing rich, Rich Dad, Poor Dad is a must-have book.

Some more tips on how to find investment opportunities here.

increasing income | reducing costs