What are some strategies for becoming rich?
September 18, 2008
Okay, so in the last article I talked about why strategy is so important. Now, let’s get to some basic strategies for making money. At a very basic level, you can choose one (or a combination) of four main paths. (See Rich Dad’s Guide to Investing for more details).
· Employee
· Self-employed
· Business owner
· Investor
Employee—Obviously, most people become employees, and regardless of your pay, the key here is living below your means and deciding what to do with the money you save. This method seems like the least risky method of earning money, but be aware that nothing is without risks. Every time our economy suffers, layoffs are inevitable, so don’t put all of your plans and dreams in the hands of your employer.
Self-employed—I like to think of self-employed people as your small business owners, contract workers/freelancers, home-based businesses, and consultants. Generally speaking, people who choose self-employment show a willingness to take risks, self-confidence, and independence. An example of self-employment is a hairdresser that runs a hair shop from her home and is the sole employee. The key is that the day she stops working is the day that money stops coming in.
Business owners—The difference between business owners and the self-employed is that business owners have built or bought a system that is successful even if the owner leaves the business for a time. A successful business owner would own the hair shop, hire hairdressers and a manager, and step away from the day-to-day management. That way, she can earn money while not working.
Investing—Investing is another method to making money without working for every dollar. However, you have to know what to invest in. There is a range of risk level, from very safe investments such as federal government bonds to very risky investments such as venture capital opportunities. The biggest risk, though, is the uneducated investor.
Next: How do I get rich by being an employee?
Book referenced: Rich Dad’s Guide to Investing By Robert T. Kiyosaki
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