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….