The 1% usually don\u2019t get rich by accident. Most of them don\u2019t inherit their wealth, and most of them aren\u2019t any smarter or more hardworking than you or me.<\/p>\n
They simply do two things that you don\u2019t (or haven\u2019t yet):<\/p>\n
1. Save significant chunks of money consistently over a longterm period<\/strong> Yes, we\u2019ve all heard about people who get wealthy by building a massive business or who invested in Apple and hit the jackpot. Good for them. Too bad that fairytale just isn\u2019t gonna happen for you. You are going to have to follow the above rules and crush it if you want to be in the 1%.<\/p>\n And you are going to have to do it the hard way.<\/p>\n As I see it, there are two ways to increase the \u201cchunks\u201d of money that you consistently save:<\/p>\n a. Earn more money OR Notice that I list \u201cearn more money\u201d first.<\/p>\n If you aren\u2019t able to earn a high income (for example, maybe you make less than $30,000 per year), then you probably aren\u2019t using your time effectively by learning to invest. Your time might be better spent developing a skill that will allow you to earn more money. On the other hand, if you earn a high income (maybe you make over $50,000 per year) and aren\u2019t able to save $2,000 – $3,000 per month or more, you are spending too much money.<\/p>\n Related:<\/strong> How Much Money Do You Need to be \u201cRich\u201d and Is It Worth It?<\/a><\/em><\/p>\n Once again, you need to figure out how to reduce your monthly expenses before there is any point in learning how to invest. In my opinion, achieving a strong return on a $5,000 investment is unimpressive. Why put in hours of work to try (and probably fail) at getting a 1-2% boost in return? That\u2019s just $50 -$100 on your $5,000 in the bank, and unless you are a prodigy, any outsized returns are probably just lucky.<\/p>\n The return on your time is incredibly negative if you don\u2019t have significant capital to invest.<\/p>\n This is where those one percenters really separate themselves from the rest of us. Achieving a strong return over a longterm period isn\u2019t necessarily hard, but it does require two things:<\/p>\n a. A clear understanding of the rule book (better known as \u201ctax laws\u201d)<\/strong> Once able to consistently earn and save large chunks of money on a regular basis, a future one percenter needs to study and have a working knowledge of tax laws and understand how to value an investment.<\/p>\n Think of wealth creation like a game or a sport. There is no possible way you can play and have a fair chance at winning any competition without knowing the rules! Before working out, attending practice, or scoring a touchdown, every single football player gets started by watching the game and learning the rules. This obvious undertaking is completely ignored by most Americans, but I\u2019d guess that about 1% of the country knows the rules inside and out.<\/p>\n Related:<\/strong> How to Get Rich: 7 Awesome Ways to Build Big Wealth Today<\/a>
\n 2. Achieve a strong return on savings over a longterm period<\/strong><\/p>\nLet\u2019s Examine These Two Rules<\/h2>\n
Rule #1: Save significant chunks of money consistently over a longterm period<\/h3>\n
\nb. Spend less money <\/strong><\/p>\nRule #2: Achieve a strong return on your savings over a longterm period<\/h3>\n
\n b. A foundation in Real Estate<\/strong><\/p>\n
\n<\/em><\/p>\n