When asked how to get rich fast, Warren Buffett said this:
“People want to make money fast, but it doesn’t happen that way.”
As a frequent contributor on Yahoo! Answers, other websites, print and online media, I often get questions about how to get rich fast. That question comes in numerous forms but it’s always the same. All over the web, TV, and radio there are advertisements touting the best new method to retire early on the millions of dollars made by using their method. It’s based on sensationalism and the dream of getting something for nothing. Let’s take a look at what the real investors are doing that make a good living doing what they do:
1.) Hours upon hours of research. They wake up early to watch overseas markets, stay up late reading reports for the next day and in between, they are trading all day analyzing market moves.
2.) They know that positioning themselves for long term growth is more important than catching the short term prize.
3.) They know that there is a reason that blue chip stocks are blue chip stocks. Penny stocks and small cap up and comings aren’t for the uninformed.
4.) They know how to read balance sheets, P/E ratios, Pegs, and analyst views. They don’t look at price. They look at value.
Maybe you aren’t an investor. Maybe your how to get rich fast strategy will hopefully be found outside of the stock market. I can help with that as well.
1.) No debt allowed- NOBODY gets rich fast or slow with debt.
2.) Live poor- Want to find the wealthy people? Look in the used cars, sensible houses and Walmart. Studies show that the wealthy do not live an extravagant lifestyle. You can’t either.
3.) Work hard and a lot- The wealthy are wealthy because they work long hours, most days of the week. The TV version of wealthy living is yachts, impromptu European adventures on the private jet, and butlers. Not true. Ask Warren Buffet how many hours a week he works.
4.) Be patient. If you want to know how to get rich fast, the answer is clear. Take the “fast” out of it and you have a chance. Maybe you have dreams of being the next NBA star. It’s possible but not probable. Getting rich fast is possible but statistically not probable. Slow down, be patient, and accumulate your money slowly and steadily.
We would all love to retire tomorrow with our new found wealth. Keep working, save money, don’t get in to debt, and make choices that will position you for wealth later.
One other fact that might interest you: You know your friend who is driving the luxury car, have the huge house, and appear to be living high on life? Statistics say that those people are most likely rich with debt. Not cash! Don’t try to keep up with them. You’re probably closer than you think.
For all of you investors, how to get rich fast is simple: You Probably Can’t. You can make some short term wins but over the long term the odds aren’t in your favor.