Today I came across this short video on how to get rich. If you expect some genius recipe you will be disappointed, however I like this video because it summarizes my present philosophy about money and how young generations can progressively build a sustainable long-term wealth. Here is a quick summary:
You need to have realistic goals. Set up a long-term plan.
Save as much as you can when you are young. Set up automatic savings plan.
Invest your money wisely and in diversified portfolios. Don’t think about stock picking or second-guessing the market. Do not be influenced by the short-run market fluctuations. Read this short article introducing the basics of investment.
Develop healthy spending habits. Do not live over your means.
Make a prudent use of credit products (credit cards, loans, lines of credit, etc). Understand the implications of borrowing money to avoid over-indebtedness.
Some of you might think “Is that it?”. But when you think about it, unless you become a celebrity or an heir the most common path towards wealth involves a progressive and sometimes slow accumulation of money saved over time. Yet I invite you to add more points to the list. What do you think is the secret to becoming rich? For example, for those who want to be entrepreneurs, a good advice could be to start working on your business idea today.
