The easiest way to get rich is to plan to be rich. There are a lot of people that 'hope' to be rich, and in hoping all they do to help themselves get rich is to buy a lottery ticket and hope their numbers come up. Getting rich can be planned, and you can easily create a plan for yourself to become rich. In this article I want to show you how you can plan to be rich.
Have you ever heard the quote "If you fail to plan then you plan to fail", this quote is often very true when it comes to finances. I have met a lot of people in my time that have told me they are going to be rich, but that didn't even have a hint of a plan in place to help them become rich. The majority of these people will fail to become wealthy, because they don't know how to become wealthy and they don't even have a plan to learn how.
Do you have a plan to be rich? If you don't then you are in the right place. If you already do then this article should hopefully shed some more light on the issue and help you refine and improve your plan.
1. Plan To Learn
This is the first plan you need to have in place if you want to plan to be rich. In all likelihood you simply don't know the things you need to know in order to become rich. Becoming rich is a learned skill, it is not something we are born with, or are given. It is something we must work hard to attain through learning.
In order to become rich you need to learn about finance and increase your financial IQ. You need to learn about different investment vehicles and how to make each one work (and find out which one works best for you). You often need to learn about people, business, tax laws, market behaviors and trends and much much more. In order to become rich you should be learning something new about finance and investing everyday.
Great investors seek to learn something new with every investment they purchase. If they are purchasing an investment property they seek to learn something new about how to invest in property better. If they are purchasing a business as an investment they seek to learn how to make more money from business and so on. Great investors and always learning and because they are always learning whenever they do an investment deal they learn how to get rich quicker with less money.
2. Plan To Raise Capital
In order to purchase investments you first need some capital to be able to buy them. If you want to become rich you need a plan on how you are going to raise capital. If you are purchasing a real estate investment you might be raising capital by going to your bank and borrowing 95% of the purchase price. But you also need a plan of how you are going to raise the 5% of your own money.
You might have a plan to work hard at your job and save money in order to raise capital, which can work. You might have a plan to start a business in your spare time to raise capital and then use that capital to invest in property. Then, once you have purchased some investment property, you might have a plan to use the investment to build your capital through rental income and capital appreciation. Whatever your method may be you need a plan to raise capital.
3. Plan To Increase Passive Income
If you are planning to be rich, and not just average, then you need to have a plan to increase your passive income. A lot of average investors focus on capital gains only. They buy investments that cost them money each month to own in the hope of making money when they sell. This ties them to their job and forces them to work harder just to keep their head above water. When they do sell, and if they do make money, they reinvest their money into another investment that costs them more money each month to own.
This is not a smart way to invest, and if you want to be rich then a good idea is to plan to increase your passive income. Passive income is income that you receive on a regular basis without having to work for it. Passive income increases your means, and decreases the need for you to work for someone else just to pay the bills. By focusing on passive income you will be buying yourself time, and when you have a lot of time you can use that time to focus on becoming rich.
4. Plan To Reinvest
If you want to be rich then you shouldn't cash in your profits on day one. Instead you should have a plan on how you are going to best reinvest them for a maximum profit. Again let me state that it is good to have a plan to increase passive income. So when thinking about reinvesting, always think about how you can generate the most amount of passive income.
When rich people buy an investment, they are always looking at how they can get their capital money back as quickly as possible. Once they have got that capital back they are essentially making money from something that has cost them nothing. The passive income continues to come in and they can take their capital and look for another investment. This is exactly what you should be doing also.
So if you don't have a plan to be rich then maybe you should think about writing one. I have a plan to learn, a plan to raise capital, a plan to increase passive income and a plan to reinvest. Because of this I am slowly but surely becoming richer every single day. You could also become richer every single day if you have a plan. The first step in your plan is to increase your learning. You need to learn about finances and increase your financial IQ. By educating yourself in the area of finances you will be able to get a greater return on investment and you will be able to earn more with less work and less risk. Does that sound good to you?
If you want to increase your financial IQ and start becoming rich then I recommend the free newsletter and audio teaching that Rich Academy provides. If you want to start becoming rich today then go to http://www.richacademy.com and enter your name and email address to get a free copy of Ryan McLean's audio teaching. Hurry, this offer is available for a limited time only.
Have you ever heard the quote "If you fail to plan then you plan to fail", this quote is often very true when it comes to finances. I have met a lot of people in my time that have told me they are going to be rich, but that didn't even have a hint of a plan in place to help them become rich. The majority of these people will fail to become wealthy, because they don't know how to become wealthy and they don't even have a plan to learn how.
Do you have a plan to be rich? If you don't then you are in the right place. If you already do then this article should hopefully shed some more light on the issue and help you refine and improve your plan.
1. Plan To Learn
This is the first plan you need to have in place if you want to plan to be rich. In all likelihood you simply don't know the things you need to know in order to become rich. Becoming rich is a learned skill, it is not something we are born with, or are given. It is something we must work hard to attain through learning.
In order to become rich you need to learn about finance and increase your financial IQ. You need to learn about different investment vehicles and how to make each one work (and find out which one works best for you). You often need to learn about people, business, tax laws, market behaviors and trends and much much more. In order to become rich you should be learning something new about finance and investing everyday.
Great investors seek to learn something new with every investment they purchase. If they are purchasing an investment property they seek to learn something new about how to invest in property better. If they are purchasing a business as an investment they seek to learn how to make more money from business and so on. Great investors and always learning and because they are always learning whenever they do an investment deal they learn how to get rich quicker with less money.
2. Plan To Raise Capital
In order to purchase investments you first need some capital to be able to buy them. If you want to become rich you need a plan on how you are going to raise capital. If you are purchasing a real estate investment you might be raising capital by going to your bank and borrowing 95% of the purchase price. But you also need a plan of how you are going to raise the 5% of your own money.
You might have a plan to work hard at your job and save money in order to raise capital, which can work. You might have a plan to start a business in your spare time to raise capital and then use that capital to invest in property. Then, once you have purchased some investment property, you might have a plan to use the investment to build your capital through rental income and capital appreciation. Whatever your method may be you need a plan to raise capital.
3. Plan To Increase Passive Income
If you are planning to be rich, and not just average, then you need to have a plan to increase your passive income. A lot of average investors focus on capital gains only. They buy investments that cost them money each month to own in the hope of making money when they sell. This ties them to their job and forces them to work harder just to keep their head above water. When they do sell, and if they do make money, they reinvest their money into another investment that costs them more money each month to own.
This is not a smart way to invest, and if you want to be rich then a good idea is to plan to increase your passive income. Passive income is income that you receive on a regular basis without having to work for it. Passive income increases your means, and decreases the need for you to work for someone else just to pay the bills. By focusing on passive income you will be buying yourself time, and when you have a lot of time you can use that time to focus on becoming rich.
4. Plan To Reinvest
If you want to be rich then you shouldn't cash in your profits on day one. Instead you should have a plan on how you are going to best reinvest them for a maximum profit. Again let me state that it is good to have a plan to increase passive income. So when thinking about reinvesting, always think about how you can generate the most amount of passive income.
When rich people buy an investment, they are always looking at how they can get their capital money back as quickly as possible. Once they have got that capital back they are essentially making money from something that has cost them nothing. The passive income continues to come in and they can take their capital and look for another investment. This is exactly what you should be doing also.
So if you don't have a plan to be rich then maybe you should think about writing one. I have a plan to learn, a plan to raise capital, a plan to increase passive income and a plan to reinvest. Because of this I am slowly but surely becoming richer every single day. You could also become richer every single day if you have a plan. The first step in your plan is to increase your learning. You need to learn about finances and increase your financial IQ. By educating yourself in the area of finances you will be able to get a greater return on investment and you will be able to earn more with less work and less risk. Does that sound good to you?
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