Learning how to become rich is different than learning how to become wealthy.
Being wealthy is a state of mind whereas being financially independent has to do with how much money you have flowing into your bank account each month.
Likewise being poor is a mindset, whereas being broke means you have no money.
So, it is possible to start your journey to financial independence wealthy, and learn how to become financially independent.
If you start your journey to financial independence poor, you will never arrive at financial independence.
No matter how broke you may be you are not poor unless you choose to be.
The goal in becoming rich is for you to have enough income to live without the need to work.
Develop a Wealthy Mindset The road to becoming rich starts with you being wealthy and learning to become financially free.
So, step one to becoming rich is to get your mind right.
No matter how broke or tough of situation you are in, someone somewhere in the world is worse off than you are.
Always spend less than you earn This may be the most important step in achieving financial freedom, but it is almost always overlooked as it seems too simple.
No matter how much money you earn, you will never become rich if you spend more than you make.
Always spend less than you earn.
For example, maybe you look at someone who earns $20,000 per month as financially well off.
However, if this person is spending $25,000 per month, then they will never be financially free.
Be sure to always spend less than you earn.
Invest the difference Put your money to work for you.
Learn how you can safely invest your money and receive income from the money you invest.
Be mindful with this step and learn how to invest safely.
Don't be too quick to jump into the next big thing or you will lose your money and never become financially free.
Instead find safe, high yielding investments that can grow over time.
Reinvest Resist the temptation to spend the money you earn from your investments.
Reinvest the money that you earn on your investments.
Einstein called compound interest the most powerful force in the universe.
This can be a great thing if it is working for you, or a terrible thing if it is working against you.
Allow your money to grow and compound.
Do not be too quick to take your money out of your investments once it starts earning.
Let it compound and build for you over time.
Invest as much as you can on a regular schedule Continue to invest part of your income.
You should always be looking to grow your investments.
Create a schedule that you can stick to and invest a certain amount of money on a regular basis.
Set aside a certain amount of money that you will invest every month no matter what.
Create Multiple Streams of Income Earn more money through multiple streams of income.
If you have a job and it is your only stream of income then it is possible that income stream can be shutoff at any moment.
It is essential that you have multiple streams of income so that if you lose one or more of them you always have a backup.
It has been said that you should have up to 7 streams of income.
This way even if 3-4 of them stop, you will still have a few streams of income and will have the time to find new sources of income to replace what you have lost.
Look for opportunities that will allow you to have another stream of income.
The more passive the better, as it wont require your full-time attention to build.
Then you can focus on your job while having the security of other streams of income just in case.
Eventually your money will be able to earn more income than you could by working for it.
Remember to invest as much as you can throughout this process.
Once your investments grow enough they will create a self sustaining income for you without having to work.
Then you will have attained financial independence and riches.