Investing is one of the methods that can make you real rich. Most of the people want to know how to become rich by investing but they want to become rich by investing for a short time and not for long time. The short term people doesn’t undergo the phase of planning and end up losing the money that they have instead of making more. Being rich is itself a plan in which every step needs to be structured and well organized. Investing is one of the step that you need to implement to get rich even if you are planning long term or short term.
‘How to become rich by Investing ‘ , that’s what the tagline says but Investing is one of the steps that you need to follow to become rich as only investing will not help you to be rich we can say. Most of the people think to become rich in short term but that is very exceptional and there is no as such process for this . So , its better to have long term thinking.
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When you think for long term , the steps that other rich people has followed to become rich can be followed or you can create your own steps by the experiences that you get from the failures over time This is said to have the working process for most of the people. Thinking of the long term will also make you ready for the success that you receive in the future and the success will have a value in your life.
As the big things come from struggle , after you know the steps , you can start hustling to get the steps followed. The steps given below are all time working to become rich if you follow all steps in the right order. Follow the steps given below to know how to become rich by investing.
The all time working steps to become rich are :-
- Take a job to earn some money
- Save some targeted money
- Invest the rest of money
- Invest Consistently
- Wait for the right time
- Think of quitting your job.
1.Take a Job:-
The first step that you need to take if you don’t have money is to take up a job that can give you some money that you can use further in the next steps. The money is the key resource that you definitely need in the process of being rich. There are some myths in which people say one can be rich without money and this is definitely a myth. You definitely need some asset to be rich.
Without money, you can continuously be poor but not rich , mark the words. Because money is needed to make more money and that can’t be done with the myths that people give. Money is needed at every phase of the life, every day of the life and if you don’t have money, you will get it from someone and be in debt. And then you will be following the steps to become poor.
2. Save Money:-
The second step is saving some targeted money from the earning you have from the job that you are doing. The targeted money means that you need to have goal to save some money. Say the targeted money is $1000 i.e you have the goal of saving $1000. So work and save the targeted money from the earning by working for 2 – 3 months lets say if you are getting around 700$ – 800$ a month .
Some money will be needed for the daily expenses like food , rent , vehicle etc. After all the necessary expenses, you can save the money and add it to the $1000 target. The $1000 saved money can be put into a Fixed Deposit or in your bank account for the emergency use if you need in the future.
3. Invest the Rest:-
The third step is after you have saved the targeted money , you can start putting up the money for investing. This is the main step that needs to be followed in a correct way. In what way the money will be used , will decide what outcome you will get in the future. If the money is getting invested in the right place , it can grow upto the infinite level and if invested in the wrong place or spent on the liabilites , can result in the complete failure of the process.
The correct places where you can invest the money can be :-
- Real Estate
- Mutual Funds
- Stock Market
- Fixed Deposits
i) Real Estate:-
The money can be invested in real estate but for this , you should have the enough capital(total money) to invest. As if you have a little money , you cannot invest in real estate. The real estate have a very good opportunities to make money as most of the time , the value of the real estate rise over time. But the thing is the time it need to grow can be a very long period of time say 2-3 years.
ii) Mutual Funds:-
Mutual Funds is a type of common investment pool which consists of a portfolio of stocks , bonds or other securities . This investment pool is open to the small investors . People can invest their money in mutual funds and get the returns according to the value of the portfolio that holds all the securities.
Mutual funds are generally divided into the categories of the securites that they have invested in the portfolio and what type of returns are expected from the portfolio.
iii) Stock Market:-
Stock market is called the well of the unlimited money. The best thing to invest in stock market is there is no minimum amount that you need to invest. You can invest the money that you have either it be $10 or $1. But the main thing that you need to consider is choosing the stocks to invest by looking at overall market trends and the stock analysis.
If you are thinking of the long term and investing in a wrong stock without any further analysis, it may lead to the heavy losses and in some cases , money can vanish upto 90 – 95%. But in some cases , if you are investing in the right stocks , there is no limit your money can grow with the growth of company.
In some cases , the money can grow more than 1000% over time period of less than 5 years . So it solely depends on the choices that you make in the stocks. The choices needs to be made with proper analysis and following the news trends.
iv) Fixed Deposits:-
The fixed deposits are the safest way of investing the money and the returns that will be served over the time will be known in the advance. The only thing that is with Fixed Deposits is banks offer very less rate of interest for the Fixed Deposits. The rate of interests that banks offer ranges between 4% to 7.5% in most of the cases.
But there is no fear for losing your money in Fixed deposits and there will be a minimum amount for which a fixed deposit will be made . For example , some banks have the $500 as a minimum amount for the fixed deposits.
4. Invest Consistently:-
There is no use of investing if you are investing for some time say 2 or 3 months and then start spending all your money for the liabilities. You can start lowering the amount that you are investing but you need to invest some fixed percentage of your income say 40% or 50% income for the proper following of the process. Only then it will be completely followed and you will definitely succeed in your aim to becoming rich.
In the early stages of investing in stock market , some people invest in the wrong stocks and then stop investing money in the fear of losing money but the thing is if the money is invested with the proper stock analysis, there will be no risk for the losing of the money.
5. Wait for the Right Time:-
The right time here is if you are following the above 4 steps and you can see the proper value for your invested money and if you have invested the real estate , stock market , mutual funds , you can get your money back by selling the assets and can use the gained profit for the further investments as the profit that you gained now can be used in the risky investments that can give you make money very quickly.
If you are ready to take risks, then you can make the more and money from the profit and you will be having the money that you invested before in the kind of safe investments where it can grow slowly over time.
6. Quitting the job:-
If you have followed all the steps given below and are now at the step 6, then you can get back to your life but with a lot of money. The money that you made as profits can be then used for starting a business or further investments and you can think of quitting the job and can start your own business. These steps are the key steps that can be followed for the definite success of a person.
But this process is only for the long term thinkers. The people that think of being rich over time can follow the process and get to the aim but over long term period only. So , this is the last step in the process of how to become rich by investing. These steps will not be available anywhere on Google.
That’s it for the blog. Hope the information is useful to the readers . Give your valuable comments below.