-
@ TobiyaDelta
2024-08-30 17:10:20
## What does beeing rich mean?
Wealth is a term that has different meanings for many people. For some, it means owning a big house and multiple cars, for others it means the freedom to travel whenever they want, or simply the security of not having to worry about the monthly bills. So before one can dive into the strategies on how to get rich, it makes much sense to define what wealth could mean:
* **Material wealth**: possession of money and material goods.
* **Temporal wealth**: The freedom to use your time as you wish.
* **Emotional wealth**: contentment, happiness and healthy relationships.
* **Health wealth**: A healthy life without the burden of disease.
---
## Developing the right mindset
The first step to real wealth starts in the mind. Here are some principles you should internalize:
1. **Abundance thinking**: believe that there is enough for everyone. Wealth is not limited; it can be created.
2. **Take responsibility**: Your financial situation is the result of your choices. Take responsibility for it and be prepared to change it.
3. **Think long-term**: Short-term pleasures can sabotage long-term wealth. Think in terms of decades, not days or months.
4. **Continuous learning**: The path to wealth is an educational path. Keep learning, be it about finances, investments or new skills.
5. **Resilience**: Setbacks are inevitable. Rich people see failures as lessons, not the end.
6. **Network and relationships**: Wealth is often influenced by the people you know and how you interact with them.
7. **Create value**: Wealth often comes from creating more value for others than you consume yourself.
8. **Discipline**: Taking in more than you spend, although this may sound trivial, it is a necessary condition.
---
## Paths to wealth
Getting rich is a goal that many people strive for, and there are several ways to achieve it. Here are some ways that are often discussed:
1. Education and career: A good education in an in-demand field can lead to high-paying jobs. Careers in technology, finance, medicine or law are good examples.
2. Entrepreneurship: Starting your own business can be very lucrative. This can include anything from tech startups to traditional businesses to innovative services.
3. Investments:
* Stocks and securities: long-term investments in stocks, ETFs or mutual funds can lead to wealth through compound interest and dividends.
* Real estate: Real estate investments, whether through rental or appreciation, are classic ways to build wealth.
* Bitcoin: Although still very young and not directly classifiable as an asset, commodity or security, the only truly decentralized cryptocurrency has very interesting characteristics that (could) lead to a perpetual appreciation.
4. Saving and smart financial management: Save regularly and invest the money wisely. The compound interest effect can turn small amounts into large fortunes over decades.
5. Passive income: By building sources that generate passive income, such as writing books, patents, YouTube channels, or developing apps.
6. Networking and relationships: Contacts with influential or helpful people can open doors that would otherwise remain closed.
7. Inheritances and profits: Although unpredictable, inheritances or winnings such as lottery prizes can lead to instant wealth.
8. Lifelong learning and adaptability: Continuing to learn and adapt to market changes can lead to success in many fields.
9. Willingness to take risks: High risks can bring high rewards, whether by investing in new technologies or starting a business in a new market.
10. Mindset and discipline: Developing a promising mindset focused on growth, learning and perseverance. Discipline in financial activities is also crucial
In practice, it is usually a combination of several of the things mentioned above, e.g. a person who has achieved a high income through education (e.g. a CEO) with discipline (continuous saving) over a long period of time can build up a considerable fortune. Basically, however, it is very difficult or almost impossible without a willingness to take risks. The more risk you are prepared to take, the faster you can succeed. If you don't have any assets yet, you have to take risky paths in order to make some progress. If you have already built up some assets, you can't take any risks. There is a great risk of starting from zero again and you are better advised to save continuously and invest conservatively. If you are already wealthy, you can of course continue to invest with as little risk as possible and this should also apply to the majority of your assets. However, you can then “gamble” again with 10% to a maximum of 20%. You can then easily afford a little fun and thrills.
Long-term preference involves planning for and valuing future outcomes over immediate ones. This approach requires patience, discipline, and the ability to foresee the benefits of delayed gratification. An example would be investing in education or health now for better career opportunities or well-being in the future.
In general becoming rich means to develop a long-term preference. Usually Bitcoiners are able to defer gratification because they learned to believe in a better future for themselves. *Why?* Because Bitcoin could be the best possible tool to store your purchasing power in the long run.
***Exercise in self-reflection***: Take a moment to write down what wealth means to you. Be specific. What does a rich life look like to you? What would you do if money were no object? This vision will be your guiding star.