Getting rich or becoming wealthy is a desire that many people secretly harbor. It doesn’t matter if you have a normal job, no job, or run your own business, everybody wants to know how to get richer. Unfortunately for many, this desire is just a lofty dream, especially for those who have a normal job. But, it doesn’t have to just be a dream. Becoming wealthy is a practical goal worthy of pursuit. And despite what cynics and the people who have a penchant for excuses say, it is achievable for everyone. So, if you truly want to know how to get rich with a normal job keep reading, because we’ll show you how in this post.
“Wealth Is Largely The Result Of Habit.”
– Jacob astor –
The truth is, everyone and anyone can get rich. Yes, most millionaires are made from being the owner of their own business, but, that doesn’t mean you can’t become a millionaire too. There are plenty of people all over the world who have amassed serious levels of wealth with just a normal job.
It doesn’t matter if you’re a janitor, a hairstylist, teacher, or a fire fighter, it can and has been done.
But, it doesn’t happen over night and it doesn’t happen by accident. Becoming rich requires a plan that needs to be followed. Fortunately, the plan is an extremely simple 5 step plan than works for anyone who implements it. But the key is disciplined implementation. So, if you’re ready to learn about this very simple plan that if followed, will help you get rich with your normal job, let’s dive in to the juicy details:
HOW TO GET RICH WITH A NORMAL JOB
1. Start Saving 20% of Your Income
First things first, you have to start saving your money. You can’t get rich if you don’t build the habit of putting your money away. Ben Franklin once stated, “Get what you can, and what you get hold, Tis the stone that will turn all your lead into gold.” Andrew Carnegie also said “The fastest way to double your money is to fold them in half and put them in your pocket.”
So, it’s never a bad idea to follow the advice of America’s first millionaire, and one of its all-time richest. That said, find a way to scrape at least 20% of the monthly income you earn from your normal job, and start stashing it away, stacking it, or whatever you want to call it. If you really want to get rich, start saving your money!
If 20% seems like an unreasonable amount to you, just keep this fact in mind, millionaires on average, invest 20% of their net pay each month.[1] If you can’t start at 20% at first, that’s okay, start smaller, with the aim of eventually getting to 20%.
So start small, aim high, but most of all, start.
2. Create a 3 to 6 Month Rainy Day Fund
The foundation of your fortune needs to be built on a rock, not sand. So, before you begin throwing your hard earned money into assets that have double digit growth potential, it’s not a bad idea to create a financial safety net for yourself first.
This three to six month fund is important to have in the event you lose your job, or suffer some type of financial set back like a car accident, unexpected medical bills, etc…
It’s key that if an emergency occurs, that you pull money from your emergency fund, vs. your investments, because investments tend to be more volatile. And if you pull your money for emergencies from investments at the wrong time, you could end up losing lots of money.
On top of this, it is important to never get in the habit of pulling money from your investments. Because once you do, it’ll be hard to stop. At which point, you’ll have created the habit of diminishing your wealth, not growing it.
So build your emergency fund as soon as possible. Then, move on to the next step.
3. Pay Off Your High Interest Debts
Mark Cuban once stated, “If you use a credit card, you don’t want to be rich. The first step to getting rich requires discipline. If you really want to be rich, you need to find the discipline.”
That said, after you create a little security blanket for yourself you’ll be eager to dive into investing. But, you’ll want to show a little more restraint and practice a little discipline by moving on to paying down your high interest debt first.
The reason to pay this debt off first, is because more often than not, your high interest debts can trap you in a form of a vicious cycle. Meaning, you’ll pay your creditors money, but you’ll make very little to no progress paying down the principle.
Creditors love it when you pay on a regular schedule and especially at just the minimum payment, because it makes them richer and slowly impoverishes you. So if the interest rate on your debt is near the average assessed interest rate on credit cards, which is 22.8%, you may want to pay that debt down A.S.A.P.[2]
Why? Because there are very few safe investments that will safely earn you over a 22.8% return a year. Thus, your money will be better used paying down debt that drains your wealth vs. grows it.
Sure, some debt you’ll want to keep and pay down on a regular schedule, (like your car or mortgage) but if the interest is higher on those debts than what you can safely earn in the markets or on investments, then you may want to consider crushing that high interest debt first.
4. Minimize Wasteful Spending
This next step is the hardest for most people. In fact, it’s what leads most people to accrue what they just paid down in step three, debt. Everyone wants to enjoy the fruits of their labor, and the easiest way for people to enjoy the money they make is to spend it.
Splurging can be fun, give us a little endorphin rush, and make us feel like we are “rich”, or that we’ve “made it” because of the material possessions that we now possess. But, this is the area that you’ll have to master if you want to become rich with the income from your day job.
So, get disciplined with your money. Create a budget if you have to, where you only allot yourself so much money to spend every month so you don’t go overboard. Do this, and you’ll be able to not only invest 20% of your income, but likely much more.
Which leads us to the next and most important step for getting rich.
5. Invest Your Money Aggressively, But Wisely
The fastest way to get rich with your normal job is to invest your money aggressively, but wisely. Once you’ve created for yourself a nice financial security fund, have paid down your high interest debts, and reigned in your excessive spending, the world is yours for the taking.
This is the point where you really start to accelerate the growth of your wealth. Every dollar you invest (so long as you invest it wisely) will become a hard working helper for you to create even more money.
A good way to think of every dollar you invest, is to think of it as an investment into a little money miner. And each one of these little green money miners diligently works for you day and night, even while you sleep to make you more and more money. And money that makes money, that makes even more money, is known as compound interest.
The concept is so important that Albert Einstein once quipped, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.”
So, to take full advantage of compound interest, you’ll want to invest as much as you can as often as you can.
Get Rich Investing In These
If you’re not sure where to start investing once you’ve taken care of all the other steps, here are some popular investment vehicles for you to consider. Keep in mind, each of these investment vehicles come where their own strengths, weaknesses, and varying risk thresholds. So, the amount you invest in each will be solely up to you, your financial situation, and your personal risk tolerances.
STOCKS
Investing in stocks is like purchasing a small portion of a company. The company uses your money to keep the business running and continue growing. Ultimately, stocks can make you money by both appreciating in value and/or paying you out a monthly or quarterly dividend.
And a smart way to truly accelerate the growth of those stocks, is to reinvest any dividends the stock pays out to repurchase more of your stocks. By doing this, you purchase more and more of those stocks over time, which can create a snowball effective in terms of how fast and how large your assets grow.
Also, if you’re not too keen on hand picking stocks, you can always go with stock ETFs. ETFs are exchange traded funds. In the most simplest terms, they are a collection of stocks that a active manager picks out for you, and manages over time. Small fees are usually involved, but, they are a lower hassle way to invest in stocks.
REAL ESTATE or REITS
Real Estate is another great investment. You can purchase it out right, or invest in a fund that invests in real estate for you, a.k.a. a REIT (Real Estate Investment Trust).
Real Estate can make you money if you rent out the property to a tenant, and that tenant pays you above the cost to pay the mortgage on the property and maintain the asset. Real Estate can also make you money when it appreciates in value.
The same principal applies to REITS, but you are essentially pooling your money, and allowing a manager to do all the dirty work. Of course, these takes control out of your hands as well, and can impact how much you make from your real estate in the long run.
BONDS
Bonds are issued by governments and corporations when they are looking to raise money. And when you invest in a bond, you are essentially giving the issuer a loan which they are obligated to pay back.
Bonds do often pay small interest payments as well, but they’ve been know to be lower than other investment vehicles lie stocks and real estate, but also less volatile.
CRYPTO
Crypto currencies are a more recent investment phenomenon. Some investment experts loathe them, while others love them. In the most simplest terms, they are essentially a digital or virtual currency that uses cryptography to secure them. This cryptography is then suppose to safeguard the digital currency from counterfeiting or double-spend.
As such, many investors buy cryptos to safeguard their wealth from devaluation, unfair meddling by rogue governments, and theft by crooks.
GOLD + SILVER
To mitigate the inherent risk of a portfolio many people invest in Gold and Silver. These assets are stores of value. Investors love these assets because they minimize the risk of one’s wealth depreciating over time.
Ultimately, Gold and Silver are excellent investment choices because their shelf-life is perpetual, and because it is more or less stable.
That said, how you diversify your investments is completely up to you. The most important thing of course, is that you just aggressively invest your money. Because the more aggressively you spread your money across these handful of investments, the richer you’ll be.
Bonus: Become More Valuable
Here’s a little bonus method that anyone can take advantage of to become richer with a normal job. This bonus tip is an accelerator.
This means it merely adds fuel to your push to get rich leveraging the suggestions laid out already. And all it requires is for you to become more valuable.
How do you become more valuable? Learn new skills or take on new responsibilities for your current employer. The best way to do this, is to upskill in some way shape or form.
To upskill, you can simply take a few courses in your spare time to learn something new that will help your employer operate more efficiently, save money, increase sales, or make more money.
Essentially, if you can help your company make more money, they’ll typically make sure you eventually make more money. So, if you want to accelerate your ability to get rich, become more valuable by upskilling. Here are a few upskilling platforms for you to consider.
Final Thoughts
Anyone can get rich, even normal people with normal jobs. But you have to first believe that you can do it, and then you have to back up that belief with disciplined action. Eventually those repetitive actions will turn into habits, and those habits into riches and wealth.
This same principle applies to just about any goal, but it’s especially true with getting rich.
“Repetition Is The Mother Of Learning, The Father Of Action, Which Makes It The Architect Of Accomplishment.”
– Zig Ziglar –
Having said that, we’ve created a downloadable version of the fastest ways to get rich with a normal job. Feel free to save it or print it out for easy access. You can also add it as a wall paper on your smartphone to help you remember these habits for getting rich. Here it is:
(Click Image to Download)
So, work on your mindset, get serious about getting rich with your normal job, and then put these money moves into motion, and you’ll be rich before you know it.
Till then,
STRIVE
PS – If you enjoyed this write up about how to get rich with a normal job, then may enjoy reading these insightful get rich quotes, or these inspirational quotes from the science of getting rich.
Disclaimer: We are not financial advisors. The content on this website is for educational purposes only and merely cite our own personal opinions. Read full disclaimer here.