Hello everyone, this is Arpit Rana from learnsomebusiness.com and today I am going to teach you how to become rich. I am not joking, there is a complete mechanism behind becoming rich. So, let us start.
First, do you know how many factors contribute to being rich?
Do you know what is income?
Income is the money that comes to you when you do any work.
Two types of income to understand how to be rich
But do you know there are two types of income-
- Active Income
- Passive income
If you understood the principle of income then you will yourself become rich.
So, first of all, Active income.
- Active income- This is simply income that you get from your job or business, that you primarily do. If you are a teacher in school, active income is what school gives you for teaching. Active income is dependent on your seniors and promotions.
- Passive income- Passive income is the income that you get from ‘side hustle’ As I said suppose you are a teacher who works from 9 to 5 but what work will you do after 5 and if that work contributes to your income, then it is passive income. This income source is made by you and developed by you. So, your growth is entirely dependent on you.
So, to be rich what you need to grow faster?
Yes, but which type of income you can grow faster?
Active or passive?
Active is dependent on seniors while passive is in your hand. So, passive income can grow faster.
Now, what a poor or average does is that he only focuses on active income sources but what we need to be rich is a passive income source.
So, find passive come sources like- rent building, websites, blogs, etc.
Once your passive income surpasses your active income, this is the time to grow passive income double of the active. Do it up to the day your passive income becomes twice of active income. Now you can comfortably leave active income sources and work for growing the passive income.
You can develop as much as passive income sources you like.
Now, do you know what is an investment?
Before understanding what is investment, if I give you 3 Million USD what will you do?
The two options are, you will buy a sports car or you will buy land.
If you buy a sports car, you will spend
If you buy land, you will invest.
What’s the difference?
A spend is something that takes money from your pocket and investment is one that makes money for your pocket.
So, as a car needs repair, service, petrol etc, it is spent. But the land will increase its price with years, so it is an investment.
Poor spend money while rich invests.
So, there are different types of investments and each investment involves some risk.
So, what you need to do is to understand the risk associated with investments and hence you can be rich.
Like- High-risk investments are share market and low-risk investment is bank saving.
But high-risk investment also means more money and more return, but it also means more risk of losing money.
So, learn investment properly before doing it.
So, these are the two basic things to be rich but I want to tell you one more thing. There is a habit in rich people that the poor don’t have. Develop that habit also.
The habit of NOT making EXCUSES.
Poor makes excuses for almost everything, rich people don’t make excuses and work until they get success.
So, these are the techniques of becoming rich? But what are the techniques of becoming a millionaire?
See you can be enough rich, but don’t have 100 million in your bank account. Is there any method of becoming a millionaire?
How to become a millionaire?
Yes, the method is the same of becoming rich but the only difference is that you have to invest your money in starting your business.
You may have seen that most of the actors, producers, etc. also do some side hustles apart from their main work. They start their own business and instead of investing in other’s people’s business, they first make their business bigger.
An example of this is Red chilies by SRK. Red chilies make movies for many stars other than SRK, even Amitabh Bachhan. As you all know SRK is the second richest actor in the world. I am not saying to just invest in your business and stop investing elsewhere, I am saying to invest more and primarily to your business.
See, starting a business and scaling it high to become a millionaire is no easy task. But if you want to become rich, you have to do it.
So, what are the simple business ideas in which you can start your business?
Well, there are many business ideas but what I suggest you for just becoming a millionaire is starting the business in the field about which you already know a lot. For example, SRK started his company in a business that is directly related to him. If you are a civil engineer, you can start your consultancy and construction business. Scaling a business high above requires too much hard work.
Apart from that, not everyone can become a millionaire. You need skills like leadership to start such a business.
Why some people become rich but never become a millionaire?
The reason for it is pretty simple, there is only one thing that stops people from getting success. That one thing is “showoff”. People start to buy expensive cars, waste their money on parties, etc. This ultimately reduces the money and leads to huge spent. This is a universal truth that more you will spend, more money you will lose. To make more money, you need to invest, not to spend. This is the reason why most millionaires never become billionaires.
Is there any mechanism to become a billionaire?
How to become a billionaire?
Well, of course, there is a mechanism to become billionaires like there is a mechanism to become rich. The mechanism for becoming a billionaire is different from becoming a millionaire and rich. Billionaires are the highest form of richness that a person possesses.
So, there should be something different in the process of becoming a billionaire.
Just tell me a very basic thing, what Elon Musk did?
What Mark Zuckerberg did?
What did Bill Gates do?
and what Ambani did?
They tried to do something new, that world or their country have never seen. They tried to make a business, out of a brand new concept. This is what billionaires do, they work in the unexplored thing. In unexplored things, there is very little competition and huge potential for making money. This thing changes everything, this is why nowadays we see online businesses as such a field. One day, you are going to find Arpit Rana in the billionaire’s list.
Apart from just making money from these known explored sources they also invest in many businesses of their own. They have a habit of expansion, they expand their business continuously. For example, look at Ambani from Reliance oil to jio. Reliance is almost everywhere. Expansion is the reason why you see reliance is so successful.
Look at Lenovo, when they were biggest in laptops. They saw potential in mobile phones and what they did they started making phones and even acquired Motorola from Google. Although nowadays things are not that good for Lenovo.
The point is the only thing that is standing between a millionaire and billionaire, in the long run, is lack of innovation and it also expands itself up to lack of expansion or lack of risk-taking power.
So, if you want to stand at the class of billionaires remember they take risk, mad risks. They don’t know the things will work or not, but they will take the risk.
So, up to now, I have told you the processes to become rich, millionaire and even billionaire. But what is the process to remain rich?
Hey, see money is not something that remains forever and everyone else is also rising so what is the method to remain rich?
You have seen that many people who were rich 20 years ago have nothing today and there can be thousands of reasons for it. For some people, it is spent, for some people investing in the wrong place.
So, what is the basic thing needed to maintain richness whether you are a millionaire, billionaire or anyone else?
How to continue richness?
Just look at the things due to which people lose either they spend all the money they have madly or they invest in a thing which has a lot of risks and loose money or one another reason is that they are entirely dependent on only one source of income.
Let us talk about all these points that can kill your richness.
First of all, remember one line spend like a beggar. It will keep you richer forever. People after becoming rich, start spending like a king. But that philosophy is wrong, spend like a beggar as long as you don’t have enough money to quit work and live a peaceful life.
Secondly, never invest only in the things which have too much risk. Invest in things that have low or zero risks also. It is good to take the risk, but keeping your entire money at stake is a bad idea.
Third, some people have websites making 1,000+ dollars per month just by affiliate marketing but this practice is entirely wrong. Always, make many streams of income. Because no one knows when someone defeats you or your stream of income gets any problem. Even if, you are just making by affiliate marketing I will suggest you make income from different affiliate sites. I even suggest to go for sponsored advertising, google adsense, providing paid services, etc.
So, the simple point is that when you can have multiple sources of income why to restrict yourself to only one?
But remember success comes by working on one thing at one time. So, always work on developing one source of income first and then moving to another source.
From where I know this much about money and becoming rich?
My source of knowledge is listening to the interviews with the rich people of a different class, I observed their ways and got my answers. I am not the first person who is doing this, if you have read the book “Rich dad poor dad” you may have known that the entire philosophy of observing the rich and learning from them is based on that book.
Factors that kills your chances to be rich-
- Lack of adaptation
- Lack of risk-taking abilities
- Procrastination- People having a habit of leaving work tomorrow and that never tomorrow coming is the number one reason standing between you and your version of becoming rich. Kill procrastination, before it kills your future.
- Lack of adaptation- People having a lack of adaptation capabilities like not adjusting with other people or not working on new skills etc. always suffer from money loss sooner or later.
- Lack of risk-taking abilities- The biggest risk in life is not taking any risk, so the first thing you need to do is starting taking some risk. But don’t take a very big risk, take small risks and get small successes or small losses. In this way, you will grow your risk-taking abilities. A person who either takes too much risk or the person who takes no risk, both can’t be rich.
So, the key is taking small risks.
Lastly, be hardworking. Smart working is a good concept but hard-working is always important in life.
So, on which you should focus first richness, becoming a millionaire or a billionaire?
I will say, work in the exact pattern the blog is written, first focus on becoming rich, then expand up to millionaire and billionaire.
So, will you become rich or not?
Videos might be of your interest-
For English viewers- Credits- Clarity Coaching – Transforming Lives
For Hindi viewers- Credits- Sandeep Maheshwari
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