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7 Money Moves You Must Make To Be Rich

Do you ever dream of breaking out of poverty and striking it rich one day? We all do, but it’s only a handful of people who actually make it to the other side. Most of the people who remain poor often overlook certain crucial money habits that end up costing them a good future. Because truth is, building wealth is not a one-time feat.

Most rich people make smart and calculated money moves throughout their financial lives, which is why I want to share with you 7 money moves I believe people must make to achieve real financial success in their lives. Here they are!

Money Move #1: Cutting Down On Expenses

How many times have you splurged on things you don’t need? And how often do you find yourself regretting flushing your money down the drain on useless things? Thing is, we’ve all fallen victim to mindless spending, and from experience, I can tell you that it’s a very costly financial mistake. When you spend more money than you actually make, you end up straining your finances, exhausting your savings, and allowing debt to find its way into your life.

This is why cutting down on expenses is a money move that will change your financial trajectory. I mean, having fewer bills to think about is great, isn’t it? Now on top of that, slashing your expenses will allow you to live within your means, which if you ask me, is a step closer to becoming rich.

Therefore, if you are willing to surrender some of your trivial financial responsibilities and squeeze that extra dollar to finance your dreams, have a closer look at what is eating up your money. Start with drafting a clear budget that outlines everything you spend money on, from the most important ones to the least and if you can’t attach significant value to any one them, then let them go. It could be your car, Cable TV subscriptions; Friday dates nights, cell phone bills, or even a pet!

With fewer expenses blocking your way, you’ll find it easier to pump up your savings account and re-direct the extra cash money to worthy investments. Alternatively, you can even use the money you will have saved up to pay off that high-interest debt that has been stressing you out.

Money Move #2: Picking the Right Job

While being on a company’s payroll is an exciting milestone to achieve, a job isn’t necessarily an express ticket to becoming rich. I can name tons of people who have stable jobs yet their financial lives have remained stagnant through the years. It could be due to debt, minimum wages, or simply because they drag themselves to work every morning with zero drive and motivation.

See, there’s no denying that building wealth through employment is difficult. From long working hours, difficult-to-clinch promotions, and unsatisfactory salaries, it requires tact and agility to get rich off your job. And as we all know, there’s always a way out if you try hard enough.

In this case, choosing the right job is the way out, and it encompasses a combination of three essential factors that drive financial success both in the short term and in the long-term.

These factors are financial sustainability, room for individual growth, and inwardly generated drive.

Granted, the right job will pay you the equivalent of the daily effort and time you put into it, and if you are the type of person that practices good money habits, you will still be able to build wealth through your job.

Secondly, the right job should provide enough wiggle room for you to grow as an individual, whether through, company-sponsored education or through offering incentives that motivate you to save, invest, or even work towards securing a promotion.

If you work with a company that offers tax-advantaged retirement accounts for its employees, for example, you will feel compelled to get your retirement fund up and running. Now imagine working for a company that provides an employer’s match for your retirement fund, what would hold you back from saving?

Last, and most importantly, the right job should have you looking forward to your next work day. Without an inwardly generated passion for what you do, you are likely to become comfortable and less likely to harbor the drive and ambition required for building wealth. As a rule of thumb, choose a career that you love, and you will thank yourself later!

If you find yourself a job that pays you well, motivates you to work hard, and makes you jump out of bed on a Monday, nothing will hold you back from becoming rich.

Money Move #3: Developing your Investment Expertise

You’ve probably been told over and over again that you can’t be rich without investing your money. Well, this is true, and for anyone who is eyeing a solid and credible net worth, you can’t possibly run away from smart investing. Because as we all know, there are only two ways with investing, you either win, or you lose, and either of these outcomes depends on how well you tune your investment expertise.

For starters, there’s something called an investment portfolio, and it refers to a basket of assets owned by an investor. These assets can be in the form of stocks, real estate investments, bonds, Certificate of deposit(s), and any other security that qualifies as an asset. Usually, it takes deep investment expertise to manage an investment portfolio and to see it thrive, which is why sharpening your investment skills is a smart money move that will help you secure the bag.

Having your grip on investment jargon and some of the smartest investment moves will give you a head start when you are ready to start investing. For one, investment knowledge will offer you a glimpse into some of the benefits and challenges of investing. On top of that, you’ll be better positioned to match your risk tolerance with the right investment.

With such skills at your disposal, you will be able to block the little nudges that could have led to your failure. So if you want to take the investment road, start exposing yourself to the investment world by reading investment books, taking business management courses, or listening to famous, successful investors.

Money Move #4: Building Up Cash Producing Assets

Do you want to become rich and successful? Stop blowing your money on insignificant purchases that guarantee insignificant returns and to put this into perspective, let’s use the example of your car. You probably spent a large chunk of your savings to get yourself that fancy, top-of-the line model but years later that vehicle continues to cost you a ton of money. Even worse, it declined in value the moment you drove if off the lot, and if we include all the car expenses that eat up your monthly paycheck, your car is probably the costliest purchase you’ll ever make.

In the financial world, such investments are known as non-productive assets, and you can see why. Even though your car cost you a lot of money, it doesn’t generate any form of monetary gain and neither does it appreciate in value. This is the equivalent of starting a business and making massive losses down the road, and any savvy investor would shun such a business and find a better and more profitable alternative. This better alternative is what we refer to as cash-producing assets, and unlike their counterparts, these assets are able to generate a sustainable cash inflow for you in the future.

These assets include real estate property, stocks, certificates of deposits or money market accounts which all have the potential of making you rich or at the least making you wealthier than you presently are.

Money Move #5: Surrounding Yourself With People Smarter Than You

A popular financial phrase says ‘your network is your net worth’ and I couldn’t agree more. Most of us are friends with people whose dreams conflict with ours and maybe this is the reason why your life is stuck in a rut. Truth is, the people you surround yourself with on a daily basis are a big determinant on how far you make it in life.

Having an intimate circle of highly successful friends will not only adjust your financial mindset one-step at a time, but it will also help you gain practical insights on how to actually become rich and successful.

If you surround yourself with high-earners, for example, you are likely to align your drive and ambition with theirs, and you’ll find yourself gravitating towards similar net worth. This is because it’s easier to improve your money habits when you have someone challenging you to do so, and most of the time, having such people around you will help expand your thinking capacity and sharpen your investment skills.

From how they think, what they spend their money on, all the way to the books they read, there’s so much to learn from successful individuals, which makes it important to have them as your friends.

Money Move #6: Taking Calculated Risks

Look at some of the richest people in the world today, and you’ll notice a common underlying trend: taking calculated risks. Truth is, mastering how to look past your fear of failure and taking the leap of faith will propel you forward in today’s economic set up. Whether in the corporate or business world, you will never know what lies on the other side until you get there, and those who succeed to the highest degrees take the most refined risks.

For example, Bill Gates dropped out of Harvard, a sought-after Ivy League institution to start a software company with his friend, he had no idea that Microsoft would turn out to be one of the most successful tech-companies in the world. Fast forward almost three decades later, he is the 2nd richest person in the world with an estimated net worth of $99.9 billion.

See, Gates could have opted to suppress the idea of building Microsoft, get the degree, and proceed to become a professor in Mathematics as he had originally mapped it out. This option sounds smoother anyway, doesn’t it?

Now that is where taking calculated risks comes in. For you to strike in rich and wave financial mediocrity goodbye, you must be able to identify risks that present an opportunity for high rewards. Take your time and weigh the pros against the cons, and if the rewards surpass the downside, then that should give you the green light.

Money Move #7: Supplement Your Current Income

There are some people who want to achieve significant wealth in their lifetime and there are others who want to achieve it yesterday and if you’re someone who wants to enjoy their fortunes while still youthful then you will probably have to supplement these previously mentioned income strategies by learning new ways to earn.

Aim to learn at least one skill you can use to make money outside your 9–5 job and create income goals around it. By generating more income, you will open up new avenues for wealth generations through the acquisition of more appreciable assets that will line your pockets over time!

So there you have it, 7 money moves you must make to be rich!

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