How would you like to be rich? Plenty of ads on social media make it look easy. If that’s true, why isn’t everyone rich? And if you become rich, how are you going to hold on to your money and grow your wealth?
A recent article by Robert Farrington posted at The College Investor outlines his 10 rules for getting rich and growing your wealth. He emphasizes that it takes time. It’s not a get rich quick scheme. Here are some of his rules.
This is true for both your money and your wealth. If “you want money, get out there and start making it.”
If you’re in college, get a job to pay for school. “The bottom line is, if you want to grow wealth, you have to earn income.”
Save Until It Hurts
It’s not enough to just earn income, you have to save it until it hurts. “How much is that? Well, if you’re not hurting yet, it’s not enough.”
Farrington gives the example of saving 40% of his after-tax income. He says, “There are plenty of people saving more—many over 50% of their income.”
Optimize Your Spending
“Buy what you want, but earn more money so you can afford it,” counsels Farrington. “The trick is to spend wisely, especially on your biggest expenses. Wealthy people stop, think, and elect a choice that maximizes their benefits while minimizing their expenses.”
Lifehack lists 13 Rules to Grow Your Wealth Effectively. Under Shop around, period, it states, “It is tempting to purchase what we want, when we see it. Online shopping means that nearly every product can be compared to a competitor.”
“Once you have a good feel for the market, don’t be shy about negotiating for a lower price from a local merchant if you find an item cheaper elsewhere.”
Always Minimize Your Taxes
Because taxes can eat away at your investments and income, they can stop you from growing your wealth over time. “If you don’t want to give up your wealth to the government, then taxes should be near the top of your mind when making any money decision.”
Lifehack suggests, “Once you have money, you don’t want to give it away, do you? That’s exactly what you do come tax time—give your hard-earned cash back to the government. Make sure you are giving exactly what you owe and not a penny more by enlisting the help of a seasoned professional.” Certified Public Accountants are a worthwhile investment.
Put Your Money To Work For You
First, you earn your money. Then, you want your money to grow and earn you more money. You do this by saving and investing.
An article by Lyn Alden explains, “if you want to build wealth there are really only two things to get right:
- Increase the difference between your income and expenses
- Save that difference and grow it exponentially over time.”
The ideas listed throughout this blog may help you with number one. How can you cut some of your expenses or increase your income? How can you save until it hurts? Where can you find the best deals on the things you need to buy?
This will free up money for number two. Then, you’re ready to invest it using the best algorithmic trading software.
Algorithmic trading software at iFlip manages the risk on your stock investments for you. It doesn’t just rebalance your portfolio like some robo advisors. Through daily analyses, AI determines if it is best to buy, sell or hold the positions in your account.
iFlip’s best algorithmic trading software using AI, is designed to reduce your risk in the market and grow your wealth. This isn’t a get rich quick scheme or day trading. The automated trading software performs best when used long-term, which brings up Farrington’s last rule for building wealth.
It’s Okay To Go Slow
Some people today want “the next thing, the next job, the next milestone, the next big paycheck.
Building wealth takes time. It’s about earning today, and leveraging time tomorrow. That’s how wealth is made,” says Farrington.