How to become rich with poor background is one of the most asked questions around the world. How to become rich with poor background is not going to be easy. If you are a person who is hardworking and mentally strong then only you can get succeed in your goal of becoming rich from a poor background.
Contents
1. Set a Goal
To become rich, becoming rich will not be your goal. I mean to say that you should know how much money you want to accumulate. It should be in number not necessarily exactly but yeah approximately will go.
Why it is important to set the amount? Let’s understand this with a small example. If you ask the child how did your exam happen today. He says good. Though you have a little bit of idea neither you are sure nor the child too. But once you know the marks then you understand that okay he got 12 out of 20 marks. Now you will have a better understanding of how much work you need to do.
In the same way, if you know that let’s say your target is accumulating 1 Cr. Now you have an idea of how much money you need and what work to do.
2. Know where you stand
Listen once you know where you have to go it’s time to know where you are currently standing. Assuming the previous target of 1 Cr. Now you know that you don’t have a single Rs in your account.
You don’t understand what to do and how to do it. You think it is impossible. So you need to take the help.
But wait you can’t take the help of people around you or like you, whether it might be your friends, family, or relatives. Because you need to get the help of that person who has already achieved that target.
Now you will say where to find that guy? Look next point.
3. Change your mindset
Simple. Look at successful people like Elon Musk, Jeff Bezos, Warren Buffett, Brian Tracy, etc. Once you understand their life journey. You will know how to deal with failure, how to take risks, how to create wealth all these.
After you go through this step you will be confident about yourself that achieving 1 Cr is possible because they all did and I can achieve that also if I work hard like them. Everything is a game of mindset.
4. Look for a job
Go and look for a job no matter whether they are providing you less salary go and do it Don’t think that it is a very low-paying job. Just start it. Here you want to get started with something so that you can start the cash flow. Which will help you to clear some expenses.
Should you work throughout your life at this job? Big no. Have a look next point.
5. Develop high-paying skill
Simultaneously with your job, you will learn new high-paying skills which will help you to get a good high-paying job.
I know it might take 6 – 12 months to develop a new skill but no problem you need to do it because your goal is 1 Cr.
6. Switch the job
Initially, your salary was 20,000 per month according to your education. But once you master high-paying skills after 6-12 months you get a new high-paying job where you get 50,000 per month.
But you can’t stop here your goal is 1 Cr. You are earning 6 LPA destination is still far from here.
7. Create Assets
Now you know that assets help you to grow your money exponentially. This you got to know by the journey of a successful person. By doing this you started to earn passive income with your job side by side.
Though things are going great you are not wasting your money and not doing show-offs. Because you know that show off is the fastest way to become poor.
With the help of jobs and assets, you started to earn around 9 lakh annually. 6 Lakh from job and 3 Lakh from assets.
Again this is not enough when you look at the 1 Cr.
8. Invest money in the Stock Market
Disclaimer: Do your own analysis before putting money in the stock market.
Now you got to know by reading and learning lots of books that any beginner can make money in the Stock Market with the help of an index fund without taking very little or negligible risk.
And you know that when you invest in an index fund you can get 15%.
So here you look to invest that 10 Lakh lumpsum amount in an index fund which you saved in 2 years.
According to your calculations, you can expect to make 40.5 lakh rupees in 10 years with the 15% interest rate.
Congratulations you achieved your goal of 1 Cr target.
You will say are you kidding. Absolutely not. Let me explain.
Initially, your earning was 2.4 LPA then you worked on enhancing skills which raised your salary to 6 LPA. After creating assets you started to earn 9 Lakh ( 6 LPA from job + 3 LPA from assets ). After 2 years you invested 10 Lakh from that amount in the stock market for 10 years.
But besides that, your assets provided you 30 lakh in 10 years. Your job salary went from 6 LPA to 18 LPA in 10 years and you save 50 % of your income every time because you know saving is important. Last your stock market investment went 40.5 Lakh from 10 Lakh. So when you calculate it is more than 1 Cr.
I hope you understand you don’t need to make 1 Cr from only your job you can get multiple assets to achieve your goals.
9. Never Stop Learning
Once you stop learning your earnings will stop or your income column will be like a flat line. So learn more, earn more.