how To Become Rich

Investing

1.PUT MONEY IN THE STOCK MARKET.Invest money in stocks, bonds, or other vehicles of investment that will give you an annual return on investment (ROI) great enough to sustain you in your retirement. For instance, if you have one million dollars invested and you get a reliable 7% ROI, that's $70,000 per year, less inflation.

*Don't get enticed by day traders who tell you it's easy to make a quick buck. Buying and selling dozens or stocks every day is essentially gambling. If you're caught with your pants down - which is unbelievably easy to do - you can lose a lot of money. It's not a good way to get rich.

*Instead, learn to invest for the long run. Choose good stocks with solid fundamentals and excellent leadership, in industries that are primed for future growth. And then let your stock sit. Don't do anything with it. Let it weather the ups and downs. If you invest wisely, you should come away with a boatload of money.

2.SAVE MONEY FOR RETIREMENT.Fewer and fewer people are squirreling away money for retirement.Whether or not retirement is going to be a thing of the past, you should plan on trying to save for your future self. Retirement accounts are sometimes untaxed or are on a tax-deferred basis. If you save up enough money in your various retirement account, chances are they'll maintain wealth for you in your old age so that you can truly enjoy it.

*Don't put all your trust in Social Security. While it's a good bet that Social Security will continue to work for the next 20 or so years, some data suggests that if Congress doesn't radically alter the system - either by raising taxes or reducing benefits - Social Security won't be available in its current form.Make a contingency plan in case you can't count on Social Security.

*Invest in a Roth IRA. A Roth IRA is a retirement account to which working individuals can contribute an annual sum of $5,500. That money is then invested and gathers interest and compound interest. If you wait until retirement age to take money out of your Roth IRA, the money that you take out isn't taxed.

*Contribute to a 401(k) account. A 401(k) account is an account set up by your employer where pre-taxed contributions go and can be invested. If your employer matches your contributions, meaning that for every dollar you invest out of your own pocket, they invest one from their own pocket, contribute the maximum amount you can afford. This is probably the closest thing you'll get to "free money" in your life! Yes, it can make you rich.

3.INVEST IN REAL ESTATE.Relatively stable assets like rental properties, or potential development land in a steadily growing area, is a good example. These are likely to appreciate in value over time, but not guaranteed. For example, some people think that an apartment in Manhattan is almost guaranteed to increase over a five-year period.

4.INVEST YOUR TIME.For example, you might like having free time, so you give yourself a few hours a day to do nothing. But if you were to invest those few hours into getting rich, you could work towards having 20 years of free time (24 hours a day!) with early retirement. What can you give up now in exchange for being rich later?

5.AVOID PURCHASES THAT ARE LIKELY TO DEPRECIATE RAPIDLY.Spending $50,000 on a car is sometimes considered a waste because it's likely that it won't be worth half that much in 5 years, regardless of how much work you put into it. As soon as you drive a new car off the lot, it depreciates about 20%-25% in value each year you own it.That makes buying a car a very important financial decision.

6.DONT SPEND MONEY ON STUPID STUFF.It's hard enough making a living. But it's hard and painful when the things you spend your hard-earned cash on are financial black holes. Reevaluate the things you spend money on. Try to figure out whether they are truly "worth it." Here are some things you probably don't want to spend that much money on if you plan on becoming rich:

*Casinos and lottery tickets. The lucky few make money. The many lose it.

*Vices such as cigarettes.

*Insane markups like candy at the movie theatre or drinks at a club.

*Tanning booths and plastic surgery. You can get skin cancer for free outside if you'd like. And do nose jobs and botox injections ever look as good as promised? Learn how to age gracefully!

*First class plane tickets. What are you paying that extra $1,000 on? A hot towel and 4 inches of extra leg room? Invest that money instead of throwing it away and learn to sit with the rest of us!

7.STAY RICH.It's hard to get rich, but it's even harder to stay rich. Your wealth is always going to be affected by the market, and the market has its ups and downs. If you get too comfortable when times are good, you'll quickly drop back to square one when the market hits a slump. If you get a promotion or a raise, or if your ROI goes up a percentage point, don't spend the extra. Save it for when business is slow and your ROI goes down two percentage points.