Becoming wealthy is a goal many of us hope to achieve in our lifetime. Whether you want to be wealthy so you can have unbelievable lifelong experiences or to validate your success, the goal is often dreamed of but rarely achieved. Ken Fisher, the author of The Ten Roads to Riches, discusses the many ways people can achieve wealth throughout their lifetime, ten to be exact. All of these roads have proven to make someone independently wealthy throughout their lives. Some are more common than others. So if the question of how to become independently wealthy has crossed your mind, I will discuss two of the ten Ken illustrates in his book.
How to Become Independently Wealthy: Save and Invest Wisely
I usually sign off my posts with a simple phrase: Budget Smart, Invest Wise. Budgeting allows you to allocate your funds to various categories, and hopefully one of those categories is savings. Whether your savings vehicle is an IRA, Roth IRA or other type of investment, saving money is critical to building wealth. However, saving is only half of the battle to building wealth this way. The other key ingredient is investing wisely. Investing wisely means creating a smart investment plan, be it with a financial advisor or through acquired knowledge, that creates a return on one’s investment. For example, I have found that investing on a monthly basis in a mutual fund that covers the broad range of the U.S. Stock Market to be of most benefit to me. I recognize that this investment, although it has risk involved, prevents me from being susceptible to the failure of one company or one sector of the market. Saving and investing wisely is the road most traveled, but it also provides the greatest chance of reward.
How to Become Independently Wealthy: Invent Income
Inventing income can cover a wide spectrum of earning additional money. For example, if you are a songwriter or musician, you can create an ongoing stream of royalties from your lyrics or music. If you purchase a property that you decide to rent out, you could turn it into a cash flow positive stream of income. The possibilities are endless. Maybe you have a specific skill that people are willing to pay for you to teach them. Perhaps your area of expertise at work can lead to consulting other companies on the side. Do you have something you’re passionate about that you can create into a blog or website and charge for ad revenue? Many of us have the tools, knowledge and capabilities to put our talents towards creating additional income.
Becoming independently wealthy or successful all boils down to one’s level of commitment. If you are committed to becoming independently wealthy, then most likely you can find a way. Some individuals, like Bill Gates or Mark Zuckerberg, created an enormous amount of wealth. Maybe you want billions like these company creators, or maybe you will be satisfied with millions or even a million. Only you can determine what being wealthy is to you.