How to become rich ?


Start with a story | How to become rich 

I started looking for ways to save money more than ever by reworking and rethinking my household.
Because I knew that in order to be rich, now I have to "save" thoroughly.
Such a statement also appears in "How to Pick Up Golden Feathers that Can Be Rich".



Assets are generated from the difference between income and expenditure, not income.
When you think you are going to be rich, you'll usually think "Let's make money" or "Let's increase your income". But that is not enough.
Assets are the difference between income and expenditure. In other words, don't increase spending while increasing your income.
The reason why salaried workers can't get rich is that no matter how much their annual salary increases, they move to higher rents, consume more, and get taxed.
So, in Japan, people who are called rich are successful self-employed or small business owners, and even if they become presidents of large companies, they can only have detached houses in the suburbs of Tokyo.
If you're hungry, you can't have a rich retirement. Many people are already aware.
The idea that “if the company or country says it will guarantee retirement” is already just an “illusion”.
Try not to increase spending (including taxes) even if you increase your income. If this is not done thoroughly, there is no way to be rich.
Finally, I come across an equation that has changed my life.
“Equation for becoming rich”.
Asset formation = (income-expenditure) + (assets x investment yield)
There are plenty of money-related books and ideas about money, but there is no doubt that this formula will be kept. Because the truth of all money is in this equation.

This equation shows that there are only the following ways to become rich.

(1) Increase income
(2) Reduce spending
(3) Increase investment yield
There are only three ways to get rich. If you want to be rich, you just have to practice these three methods.
I immediately decided to compare my situation with "three methods" and think about what I can do now.
[The “rich people” series you want to read together]
What kind of person is the wealthy? Beyond the 100 million yen wall
Accelerate the road to millionaires with "Money PDCA"
・ The era of 120 million “Private Company”
Leverage work styles with increased leverage


Increase income. Spending is reduced
I got the "equation for becoming rich" and decided to put into practice what I can do now.
The first is to “increase income”.
“If your salary is low, you can increase your non-salary income.”
However, since I am in training, I don't have much time and it is difficult to start a side job. Hands that can be hit are limited. For the time being, I thought of changing what I own now to money.
Fortunately, the house slept like a mountain without a lot of luxury brand clothing, shoes, books and DVDs. I decided to sell them all at a flea market.
Thanks to the waste so far, it is ironic, but when everything was sold, the total amounted to 1 million yen.
If you throw away unnecessary things, you can use them even in a small room, and if you sell them, they will be useful to someone and you will get money.
At that time, I used a flea market, but now there are useful apps such as “Mercali”, so I would like to recommend using them actively.
The next is to reduce spending.
“Can you save more ??”
I started saving more than ever.
Until now, it was enough to put up with “wasting” such as clothes and drinks, but this time, we decided to save money other than wasting, that is, “consumption”.
To reduce spending, it is important to reduce “fixed costs” anyway.
If fixed costs such as rent, utility costs, and food expenses can be reduced, it should save more than expected in one year.
I finally decided to move. I moved out of a one-room apartment with a rent of 80,000 yen that I had lived to and moved to a tattered rented house with a rent of 25,000 yen.
A one-story house with no bath between 6 tatami mats, 20 years old. As expected, this was hard, but I thought it was the only royal road to become rich, so I decided to endure it.
At that time, only landline calls were made, but now communications costs will not be stupid. There should be some savings on home internet fees, monthly costs for smartphones, etc. by making cheap smartphones.
Food costs were cut further.
They stopped eating out, using convenience stores, and fast food, buying time-sales side dishes at the supermarket, and cooking and eating their own food.
But I couldn't stop drinking. If I cut it too much, I really get stressed.
Therefore, I allowed myself only to drink, but instead switched to cheap “Happoshu”.
For beer, it costs nearly 300 yen per can, but for sparkling sake, long cans can be purchased for around 200 yen. If piled up, it will become a mountain. Daily steady savings are the way to millionaires.
Get along with "interest rate"

3 ways to become rich,

(1) Increase income
(2) Reduce spending
(3) Increase investment yield
I learned that.
Although (1) and (2) were devised in various ways, “(3) Raising the investment yield” was too early. In the first place, there was no money to buy assets because it was still in the middle of debt repayment.
However, to accelerate and advance the path to “financial independence”, this concept of “yield” must be properly understood.
Words such as “yield” and “interest rate” tend to be difficult and shy for me in the humanities, but I can't say that to be rich.
If “yield” is large, “assets” will be increased accordingly.
For example, even if a 10 million yen “principal” is operated at an annual interest rate of 1% and a compound interest rate of 10 years, it will only be 11 million yen. On the other hand, if the annual interest rate is 5%, it will be 16 million yen, and if it is 10%, it will be 26 million yen.
Even if the difference in "yield" is small, it will eventually become a big difference.
Now that you've said that “10 years compound interest”, what do you mean by “compound interest”?
There are two types of interest rates: simple interest and compound interest.
“Simple interest” means that interest is paid only on the principal deposited.
If you deposit 10 million yen and the annual interest rate is 10%, the annual interest will be purely 1 million yen. In the second year, the principal amount is 10 million yen, so the interest is 1 million yen. The increase in 2 years is 2 million yen.
“Compound interest” earns interest on “principal + interest”.
The generated “interest” is added to the “principal” of the next period. This “principal with added interest” is newly calculated as “principal” for that period.
If the annual interest rate is 10% when depositing 10 million yen, the annual interest will be 1 million yen, but the principal for the second year will be "10 million yen + 1 million yen", which will be "11 million yen".
The interest in the The second-year is 1.1 million yen, which is higher than in the first year.
It can be seen that there is already a difference of 100,000 yen in the second year. In the long run, the capital increases every year, so the assets increase like a snowman. The higher the investment yield, the higher the asset growth rate. This is the power of “compound interest”.
Einstein also left the phrase “the greatest discovery in mathematics is compounded”. If you are going to be rich, I would like you to make full use of the power of this “compound interest”.


Success is painful

It is necessary to repay the debt as soon as possible and to make "seed money" that can buy assets. I thought so and lowered my life specs to the point where I could lower it.
There was nowhere in the past that I was buying what I wanted and drinking with my friends.
An extreme stoic life where you buy only the minimum necessary items. In retrospect, it may have been the best time of my life.
"I'm now heading towards 'Financial Independence'!"
Although I thought of it and supported me, I seemed to be overwhelmed many times.
"Isn't there a special person, who can be rich?"
I was also very bearish.
That's when I met Napoleon Hill.
He is called "the ancestor of success philosophy". During his early days as a newspaper reporter, he met Andrew Carnegie, the world's steel king, and systematized his success philosophy at Carnegie's request.
His masterpiece “Thinking Realizes” (Napoleon Hill, translated by Takaaki Tanaka, Kiko Shobo) interviewed over 500 celebrities over 20 years.
It is a systematic summary of why they succeeded and how to think and act.
He says in the book:
Success requires a price.
It's simple, but it's a word that puts the heart of things.
Napoleon Hill continues to say:
There are no achievements in this world without any compensation.
However, the price you pay is very small compared to the results you get.
I think now.
It was a very difficult time when I had lost my life specs to the ultimate.
However, I am now getting tremendous results in terms of “financial independence” in exchange for the “compensation” at that time. Certainly, the price at that time might have been very small.
I want to tell you like me that you really want to be rich!
Let's throw away the sweet idea of ​​making it easy and successful.
There is always a period of pain to be successful. Whether or not you can overcome the hard times is the fork of success and failure.
I want you to move forward without fear of pain for the great success of the future.

That was:

How to become rich?

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How to become rich ? How to become rich ? Reviewed by Julia club on September 12, 2019 Rating: 5

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