Why rich people always rich??
Recently the idea that luck plays a crucial role in your success is getting popular. You know these billionaires like Bill Gates or Mark Cuban telling that they have been lucky to a certain degree to be in the position they are now.
There is some truth to it but I have a huge problem with that. Many people are blaming a lack of luck for their financial misery. You see, there is a huge difference between being financially free and being a billionaire.
Just to put things in perspective, one billion dollars is one thousand million dollars. The just so much money that you will never ever make it by having a job and even working super hard day and night at the highest paying job.
And if you give it a closer look, these billionaires don’t have that much cash, it's their net worth on paper. They are definitely rich but not in the sense of having a few billion dollars in cash in their backyard.
But the question here should be, do you need a billion dollars? How much do you think you need to live comfortably if you are in the U.S.A, 100k dollars after taxes will get you a pretty comfortable life in almost every state, in most other nations, you probably need a lot less or slightly more.
Let's just make things a little more interesting and say that you want to live like a king. And say you spend 100k dollars a month, that’s 1.2 million dollars a year. Assuming you are 20 years old, and you have 60 more years left, you will spend 72 million dollars at best.
So when Bill Gates says he got lucky to a certain degree, he means got lucky to make 100 billion dollars. If you are spending 1.2 million dollars a year, you need over 83k years to spend all of that money.
But let's be honest with each other, to be financially free you need a lot less than, for most people even 5k dollars a month is enough. Building an investment portfolio that pays 60k a year isn’t difficult, you only need to save 1 million dollars or even as less as 600 dollars.
So the first thing you should do is forget the idea that you need to get lucky. The world population is almost 8 billion dollars however the number of internet users is only about 4.3 billion.
If you have access to read this blog, you are already lucky enough. If you are wondering why am I emphasizing this so much is that, time after time, I meet people who constantly try to prove to me that every successful person is simply a lucky person which is not true.
Yes, being at the right time, in the right place, with the right skills might give you an extra advantage but if you have access to the internet, you shouldn’t be complaining.
If you have been raised in a low-income family, chances you will end up poor are pretty high no matter how hard you work. That’s not to say that you are destined to poverty but your childhood in many ways forms your character and personality.
In a poor family, life is uncertain, you aren’t much concerned about the future, what matters is now because resources are limited so whenever your hands lie on some money, you quickly indulge yourself in sweets. This habit keeps on with you when you grow up.
So when you are faced with a choice between let's say starting your own start-up or working for the minimum wage, you will choose the minimum wage because of the promise of a brighter future. That this startup will make millions seem more like a dream than a reality since based on your experience your parents gave you many promises to get you toys and sweets.
But broke them up out of financial necessities. So you grow up prioritizing short term small rewards over long term big rewards. So you end up working in low-income jobs instead of living a bit frugal but spending your time building the skills that will earn you much more in the future.
So, the second thing you should do is learn to delay gratification. That doesn’t mean living miserable today for the sake of tomorrow, but living a lite bite more frugally than you allow yourself to do.
Instead of working 10 hours a day for the minimum wage, maybe you should work 5 hours. So that you have the time to develop the skills that will be far more valuable in the future. Yes, you might have to prevent yourself from getting a better car now or a new phone.
But you will get a bigger reward later on which is financial freedom or a much higher quality of life.
Let me make a disclaimer, just because you did the first 2 things doesn’t necessarily mean, you are going to be successful and stand next to Bill Gates on the Forbes list. The factors that will influence your success are much more than we can possibly cover in this blog post.
But if you don’t follow the first 2 steps we talked about, your chances of reaching financial freedom would much much lower. However, here is a basic guide on how to increase your odds of success.
Take this plan and apply it to your circumstances. When I was in school, I hated math but when I grew a little elder, I realized that its the foundation of everything. Before you delay gratification or start your own start-up or invest in a college degree, you have to do the math.
How many resources such as time and money you have to put into it? How long will it take? And how much it could potentially earn? If the math seems promising, then get all in and focus completely on it.
Can you be wrong? Of course. Give it a few months or maybe even a year, if it seems like it will most probably work, if younger convinced this definitely has the potential to get big, then stick to it. But if it doesn’t work, then don’t hesitate to try something else.
What's important here, whatever its, the math should be telling you that within such a time frame, it will get you to financial freedom. Thanks, guys for reading. This blog site is still in its early stages, so if you hit that accept button, that will show the other interesting content when I post. Thanks for reading and until next time.
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