The Simple Secret to Getting—and Staying—Rich
We the People
We live in the age of the hack. A buzzy tip or trick, perhaps even a short-cut of sorts, a hack is an exciting way to solve a problem and achieve a goal, whether it's making your IKEA furniture look fancy or actually getting your garden to grow.
But sometimes, a solution to a problem, like how to get (and stay!) rich, is better solved by a simple, even boring shift in understanding. According to Time, the best secret to securing personal riches has less to do with what you do for a living, but rather, how you live your day-to-day life.
The secret to getting rich is simply living below your means.
"The bigger the difference between what you earn and what you spend," shares Time, "the sooner you’ll find yourself with enough money to do what you want with your life."
The challenge, then, is recognising that many people who appear rich, actually are not. Rather, they're on a fast track to being in debt. As Time notes, "Central to all of this is redefining what it means to be rich."
The mindset that supports this responsible approach to wealth demands we live somewhat frugally: to live in places we can afford to live long term, take vacations that won't put is in a financial tailspin, to drive cars that serve their purpose, rather than impress. If you're nodding your head in agreement, take a close look at the smallest corners of your spending, and consider cutting daily costs. Automate your savings account allocations. Put a significant portion of any bonuses or raises away. Live your life as if you're making a bit less than you really are, and you'll have money saved up in no time.
It may not be the most groundbreaking hack we've ever heard, but its sheer simplicity is compelling and accessible for us all.
Check out some of our favourite personal finance apps and get your spending budget in shipshape.
What do you think about this approach to getting rich? Tell us below!