Donald Trump and his daughter, Ivanka, were driving one-day and on the corner of a street they spotted a bum. Donald pointed out to Ivanka, that the bum had more money than he did. She was startled, and she naturally asked him how that was possible. He then went on to explain how the bum had no debt, while he had a lot of it.
The average American household is $14,500 in debt. If you include things like a home loan, the debt amount per household drastically increases. But this shouldn’t stop you from becoming rich, just like it didn’t stop Donald Trump. Instead, it should make you adjust how you control your finances.
If you want to become rich the first thing you need to do is adjust the way you spend your money:
- Pay off your debt – list out every penny you owe and the interest rate next to it. Chances are that you are paying more interest on things like your credit card than what you are earning from the bank. So instead of making the minimum payment on your credit cards each month, pay them off.
- Spend your money wisely – just because you have money, doesn’t mean you should waste it. Be cautious with your spending and if you really want something, buy it when it is on sale.
After you start managing your finances wisely, you need to change your viewpoint about money. Every penny counts! When you see change on the floor, pick it up!!!!!!!! There is nothing wrong with this; even millionaires pick up change off of the ground. You’ll be amazed how fast all of those pennies add up.
Now that you have the right mindset, you need to start making make more money, with your money. Incase you didn’t know, more millionaires are born during recessions due to the opportunities the economy presents. If you want to be one, here is what you need to do:
- Embrace the unknown – there are going to be tons of opportunities for you to get rich especially in this economy. Things like the stock market are very attractive, but before you jump in, make sure you learn about it. Be willing to put time into learning new things because if you don’t you will either miss the opportunities or you will lose all your money by investing in something you have no knowledge about.
- Ride the coattails of the rich – people are desperate right now, so the rich are seeing some of the best investment deals ever. Although you may not know much about investing, the rich usually do, so try and ride their coattails. Now granted, this only works if you know a lot of rich people, so if you don’t know any millionaires, you better hurry up and get to know them.
- Make a lot of bets – like everything else in life, if you keep on trying to become rich, sooner or later it will happen. By being more cautious with your spending you should have more money to play around with. Don’t be gun shy, invest when you see the right opportunity. And if you find a really good opportunity never go all in, it may actually be too good to be true.