Dave Ramsey: Forget Being Rich – Do These 8 Things to Become Wealthy Instead
Written by
Adam Palasciano
Edited by
Maria Concepcion
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The terms “rich” and “wealthy” are often used interchangeably. However, there is a key difference between the two. According to Ramsey Solutions, when you’re rich, it means that you spend a lot of money, whether they have it or not. When you’re wealthy, it means that you have your finances in order and are making wise money decisions.
To become wealthy, there are 10 key things you’ll need to do.
10 Ways To Become Wealthy
Here are 10 effective ways to become wealthy:
- Don’t Live Above Your Means: It’s important to always live below your means to become truly wealthy. If you get a raise at work or start a side hustle to increase your income, try not to upgrade your lifestyle, too. By living below your means and increasing your income, you’ll have more money to save and invest each month, allowing you to build long-term wealth.
- Buy Real Estate: Purchasing real estate is also key to building wealth. Not only will you have equity in a piece of property, but you can also rent out your space to generate passive income. Also, if the property is located in a desirable area, you might be able to sell it later on and turn a profit.
- Purchase Life Insurance: Ensuring that your next of kin will still have income after you pass (or in the event of a sudden death) indicates wealth. You may not be thinking about life insurance if you’re young, but it’s smart to buy a term life insurance policy at any age to prepare for the unlikely worst-case scenario. Plus, the younger you are, the less expensive the policy will be.
- Invest Your Money: Investing your money in stocks or other assets is crucial for wealth accumulation over the long-term. Maintaining too much liquidity means that your cash isn’t growing much over time.
- Be Entrepreneurial: Starting your own business can be a very effective way to become wealthy. If you have a smart idea or identify a need where there’s a scarcity, you could potentially become quite wealthy working for yourself and growing your own venture.
- Eliminate Your Debt: Debt eats a hole in your finances. The sooner you can eliminate all debt, the better. One of the most detrimental types of debt is credit card debt, which typically carries a high interest rate. Be sure to pay your credit card balance in full on the due date each month to avoid further debt.
- Change Your Mindset: To truly build wealth, you’ll need to consider your goals. Ask yourself what kind of legacy you want to leave for your heirs. By shifting your mindset, you can start down a path of building wealth.
- Always Be Generous: Being wealthy isn’t just about making more money. It’s also about giving back. Being generous with others should be one of the reasons that you become wealthy in the first place.
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