8 inside secrets to getting rich that you don't know

What does it mean to be rich? Some rich folks would say it all boils down to hard work and success, but playing smart with money is a tip they may not divulge. Click here to read on the eight inside secrets to getting rich and staying that way.

Introduction

To have you rolling in money requires you to develop money power, which essentially means gaining control over your financial life. But for that you need to make your money work for you through suitable investments instead of spending it. Let's look at the best-kept secrets to getting rich, in no particular order.

1. Don't spend more than you make

It can be alluring to spend money on the latest electronics, gadgets and luxury goods. But eventually, if they do not hold any value and are items that you don't need, you could easily land up spending money that you could have used to build wealth. The more you purchase, the more debt you may accumulate that would cost you additional money when repaying. Invest your money in the right assets to help you earn good returns in the short and long run.

2. Take advantage of time, especially if you're in your 20s

You may find it foolish to start investing for your retirement in your 20s. But most rich people will tell you that time is of the essence when it comes to growing wealth. The longer you wait to start investing; the fewer opportunities you will have to grow your wealth. Start saving and investing early with the confidence that your money will grow in the long run and for your future.

3. Develop a unique plan for your success

A crucial secret lies in creating a customised financial plan that shows how you spend, save and invest for your goals and where your money is going. Mapping out your goals help measure your results and set you to make the right money moves.

Additional read: How to create long term wealth

4. Stay away from debt

Short-term debt that comes with high-interest rates can be debilitating if not repaid on time. When you have total control over your money, it helps you establish a foundation of financial independence. Having a state of mind that tells you to put your money to work rather than pay heavy instalments can go a long way in achieving financial freedom without debt.

5. Take advantage of compounding

Investing your money through equities in the stock market and equity mutual funds gives you the opportunity of earning interest on top of interest, provided you stay invested for the long term. This compounded interest, in the long run, grows your money exponentially. But remember, the same holds for debt as well. So rather than spending your money today, invest it and allow it to grow; avoid the temptation to spend that could eat up your money faster than you know.

6. Keep tracking your net worth

The right way to measure your wealth is to track your net worth. Your net worth is the sum of all your assets subtracted by your liabilities. How rich you are at any current stage is determined by your net worth. So to know where your net worth lies, look into your investments in tangible and intangible assets and how long you've owned that has helped build value to ascertain your wealth.

7. Seek a money mentor

Most wealthy individuals have a mentor that helps them achieve their long-term wealth goals. There is much significance in having proper financial guidance in your pursuit of wealth. The value of a financial mentor can help you leverage their years of experience to allow you in carving your niche towards wealth. If you are have specific goals of building wealth during your lifetime, taking recommendations from experienced investors and financial advisors can help you know more about the pros and cons of any investment before you make a money decision. 

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8. Be patient

It is a common saying that no one becomes a millionaire overnight. When you invest your money diligently for the long term, you would know that to grow wealth through your investments becomes an endurance contest and not a sprint. Take the step of saving more than 20% of your income every month towards your long-term goal of building wealth, and through patience, you will be able to achieve it successfully.

Conclusion

The term, rich, has a definite aura of lure attached to it. It's the stuff of fairy-tales, no doubt. And that’s why, if you're looking to get rich, you need to redefine your lifestyle starting today. Look for the right ways to make your money work for you by consulting with wealth experts to show you how to invest in the right assets and the right proportion.

Disclaimer: ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.