3 Ways to Wealth

During my time in college I took many finance and business classes in order to graduate. Some of them were helpful and some were just there for me to take, pass, and move on with my life. I will always remember the words of one of my finance professors on the first day of class. He asked the class what are the three fool proof ways to become wealthy. So I thought I would share my professor’s insights with you all because its always good to learn more about how to become wealthy.

The first foolproof way to make money is by marrying into money or by inheriting money. We see often or hear about children with large trust funds and inheritances turning 18 and have sudden access to large amounts of money that was set aside for them or dictated by a will. We also see families acquiring wealth from deceased wealthy family members.

The second way to be wealthy is to be extremely lucky. This includes winning the lottery, investing in a fairy tail stock (that brings you millions) or having a million dollar idea and executing a business perfectly. Now this does happen every once in a while but the chances seem pretty slim for the average person to find such luck.

The first two ways seem like they carry a low probability for most of us and I would like to think people these days still get married because they love someone rather than trying to marry someones bank account.

But….the third way we can become wealthy in our lifetime is to always remember one rule. If you always spend less than you make or spend less than you are able to afford you will surely be wealthy. This concept is so simple yet so many people in all parts of life have such a difficult time understanding that, in order to have money, we have to hold onto it and not spend it.

This brings me to a good point. Millennials in our generation have a tendency to spend money like crazy whether its at the bar, on food, clothes, accessories, or phones etc. A lot of this stuff far surpasses our basic necessities. Most of the time we are not getting any kind of return on our money financially and a diminishing return on the thing that we buy.

So if you plan on being wealthy or want to start, just remember one rule, spend less than you make.

Stay tuned for the next article as we break this down more for better understanding….

8 thoughts on “3 Ways to Wealth”

    1. People fail to grasp these rules because everyone acts on emotion these days. we all crave instant gratification and do anything to justify the consequences of our actions. therefore we downplay these rules and sometimes forget about them all together. if someones gets a $500 paycheck at the end of the week. they are going to spend $400 of it on fun and wants when. $100 left isn’t enough for the person’s needs. so they will go into debt funded by credit cards. After debt its hard to tread water without serious credit repair and the ability to pay off debts and new expenses.

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      1. This is exactly what I tell people in my workshops… Money = Emotions! Some get it, but others feel it is just that everything is sssssoooooo expensive and that is why they can’t get by on what they have!

        I see Money as a ‘Tool’. it allows you to leverage your time and allows the kind of lifestyle one chooses to live. I used to be someone who did exactly what you described… But the most interesting part, I knew all the finance rules. But it was only when I realized that ‘Emotions’ was in the equitation that things became more clear!

        Thanks for replying, always interesting to learn other person’s views!

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  1. One of the only things I remember from my financial accounting class was, ‘INVEST IN THE S&P500!!!!’. He was very clear in that being one of our better choices in investing. It is not enough just to save, you have to put it somewhere where it will beat inflation. However, step 1 is definitely to live below your means.

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    1. I haven’t introduced investing yet in my blogs curriculum, stay tuned. investing in the S&P means nothing to the average millennial with no financial background. i think it is not good advice to throw around without further knowledge of todays markets.

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      1. I was just sharing a story that I thought of when reading your blog, not actually throwing around advice. When I was going through the class, I thought you could invest directly in the S&P500. Although it didn’t make sense to me at the time, it DID give me a basis for comparison when educating myself on matters of investment.

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      2. I appreciate the comments! Haha and I know don’t worry! Please follow along and participate with the posts it’s always good to have input, if you don’t agree with something’s speak up!

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