7 Ways to Get Richer
September 18th, 2009 by Bob Bly
In a previous post, ?The 4 Secrets of a Successful and Happy Life,? I wrote that one of the 4 conditions required to enjoy a happy and successful life is having money.
But how do you achieve a greater-than-average net worth?
Here are 7 suggestions:
1?Acquire a valuable skill that enables you to earn an income that is at least 2X greater than the national average and preferably 3X greater.
2?Save more than you spend ? at least 10% of your gross income annually.
3?Start your own business.
4?Have multiple streams of income and continually add more.
5?Don?t buy a lot of useless crap you don?t need. It clutters your life, costs you money, takes up space, and depreciates in value.
6?Buy services (e.g., a lawn mowing service) that free you from unproductive labor so you can spend your time on more profitable or enjoyable pursuits. Buy time, not junk.
7?Invest in real estate and other assets that appreciate in value (e.g., gold) or generate income (e.g., vacation rental property).
This entry was posted on Friday, September 18th, 2009 at 11:11 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
September 18th, 2009 at 12:23 pm
Good list. But does gold really appreciate? It is an effective hedge though. What is your position in investing in securities?
For number 1: Any suggestions on which skills these might be?
September 18th, 2009 at 12:35 pm
T: Of course these are general guidelines, and I am not an investment expert or advisor. I like silver better than gold, because if it returns from current levels to all-time highs, the gains will be several times greater. As for skills, any area where the average worker earns 100K or more a year would work.
September 18th, 2009 at 1:25 pm
[...] 7 Ways to Get Richer – bly.com blog – bly.com direct marketing blog bly.com/blog/general/7-ways-to-get-richer – view page – cached — From the page [...]
September 18th, 2009 at 2:39 pm
A sage list, Bob. Still, number 5 can be problematic. One person’s “crap” is another person’s necessity. A good economics 101 Professor will invariably point out to students the varying perceptions of “material need” from one consumer to the next. A jacuzzi in the house used for home therapy treatment might, in some cases, prove a necessity. But a jacuzzi for entertainment and diversion could be “useless crap.” (Incidentally,is there any other kind of “crap?”)
Also Bob, are there instances in which the items you sell as a copywriter are at odds with what you consider “useless crap?” In other words, would you write copy for an automobile that you would never personally drive? Or would you write copy for an energy stock you wouldn’t invest in with your own money?
The kind of Spartan consumer discipline you recommend is admirable, but not always that easy to observe. And as copywriters, we depend
on our skills to move at least some steadfast consumers off the dime every now and then.
September 18th, 2009 at 3:17 pm
[...] Original post: 7 Ways to Get Richer – bly.com b&#… [...]
September 18th, 2009 at 7:27 pm
Lou Wasser: on #5, I am fortunate in that my nature is anti-materialistic. I don’t like to own material possessions, so I buy only what I really need, with certain exceptions. When you are materialistic, your house eventually fills up with stuff you wasted your money on and then get rid of at a garage sale for pennies on the dollar.
September 18th, 2009 at 9:21 pm
Interesting high level list with some good advice
Re: #5, while model trains certainly aren’t a necessity, for me they are an enjoyable hobby I spend money on.
Re: #6, for some reason I actually enjoy mowing the lawn and think it reduces stress.
September 19th, 2009 at 1:15 am
While gold and silver can be looked at as investments, I consider them to be insurance. Their purchasing power over the long run stays constant whereas the value of our dollars is being inflated away more and more with each trillion dollar bailout that is funded with an increase in the money supply.
Since our politicians want to get reelected they will not raise taxes to fund their programs…
Since China and other foreign sources of capital have dried up (who wants to buy dollars that are being devalued daily) we can no longer look to them to fund our buying spree…
And since the public demands that the government “fix” the economy and continue to keep filling the trough from which so many feed…
…It is almost certain that the source of funding for these programs will come from printing more and more dollars. Money created out of thin air. Monetary inflation will be followed by price inflation. Your dollars will buy less and less.
At some point people (here and abroad) will lose faith in the dollar. At that point you will be glad that you have purchased some gold and/or silver. An ounce of gold still buys approximately the same amount of basic commodities as it did in Roman times. Over the centuries gold has proven to be a reliable store of value.
I believe it is prudent to hold a gold and silver reserve sufficient to provide basic living expenses for 2-3 years. It can’t hurt and may turn out to be the best decision you ever made.
September 19th, 2009 at 10:13 am
Woody: Do you have any currency plays to recommend?
September 20th, 2009 at 10:31 pm
Bob: While I feel 100% confident about my belief in precious metals, especially gold bullion, as basic financial insurance, I would not consider myself qualified to make currency trading recommendations.
OK – that was the disclaimer – now here’s my take on currencies. Trading currencies looking for short term gains is not something I am interested in personally. Too much work keeping track of what’s happening day to day.
Also, today, all the worlds currencies, not just the dollar, are based on nothing but a lick and a promise from some government. They are all fiat currencies and can be manipulated by politicians looking for ways to finance their agenda, whatever that might be. Mostly this means robbing the savings of older generations by devaluing their savings and mortgaging their children’s future by borrowing with the intent of paying back with cheaper dollars, euros, etc.. As such, all currencies are infected with the inflation virus which could get out of control at any time.
That being said, the Asian economies are a good bet for growth and strong currencies over the longer term. There have been many naysayers who forecast the fall of Asia as a result of the loss of their markets in the west. This domino effect hasn’t happened. Instead we see the decoupling of these economies from the west and the growth of internal markets and regional trade.
Asians have been working hard and consuming less than they produced for many years and have thus accumulated a large pool of savings. This is the position the United States was in after World War II. Those savings, that capital, financed many decades of growth in the U.S. and Europe. Asia is now ready to do the same.
Asian governments are spending their increasingly worthless dollars on stimulus projects. Their populations are sitting on a pile of money. Sales to the west is less and less important as Asia exports more and more to itself.
As these trends grow there will be less need for Asian governments to keep their currencies cheap relative to the dollar and the euro. (ie: their currencies will rise against the dollar and the euro).
There you have it.
September 21st, 2009 at 9:48 am
[...] 7 Ways to Get Richer… [...]
September 22nd, 2009 at 12:06 am
I agree with all your insights here. Actually, I don’t spend too much money from unnecessary items that can really help me save lots of money from my earnings. As of the moment, I still need to settle some stuffs before I can actually establish my own business. I mean, a real business and not an online one. Though, I’m still hoping to be successful in online work.
September 23rd, 2009 at 11:19 am
Nicolas: while I know what you mean, the fact is that an online business is just as real as any other business. The money you make is real and substantial, and it spends every bit as well as money you make as a consultant, store owner, doctor, or brick layer.
October 1st, 2009 at 4:19 pm
#8: Don´t search for articles like “7 ways to get richer” – use the time to work;-)
October 17th, 2009 at 9:00 am
I like this. Maybe there are not original ideas, but together it’s probably everything we really need. And it’s not that hard to make it work. Thanks, Bly.
February 14th, 2010 at 9:17 pm
The most common problem of people once they started earning money is the way they handle their finances. They forget to budget everything. Many spend more than what they are actually earn. Aside from that, they keep on buying unnecessary stuffs.
February 22nd, 2010 at 4:15 pm
I’m actually doing all in order to get richer except for one. Delegating non-sense activities to other people. Since I’m also a service provider who needs a decent amount of money to support our daily living, I need to sacrifice my time doing nonsense stuff.
June 3rd, 2010 at 6:43 pm
It’s really hard to design yourself and your work as well to get the right way towards success. However, it would be easy if you know how to save money and to make a little invest. Your action must start now…
April 19th, 2012 at 9:11 pm
After I originally commented I clicked the -Notify me when new feedback are added- checkbox and now each time a comment is added I get 4 emails with the same comment. Is there any approach you can remove me from that service? Thanks!