In my research on wealth, money, and how to get more, I found different methods. Every person who recommends his method is convinced that it is the right one. And unfortunately, they are all more or less different. I summarize here the 4 ways to become rich that I found.
Compound interest and time – The longest method
The first method is that of compound interest. We really see it everywhere. The goal? You put 10% (or more) of your monthly income in an account like life insurance. And you make a habit of doing that. 10%, after all, it’s not huge either, it’s pretty easy. And you learn to live on 90% of your income. So you really have to do it every month to make it work.
Moreover the most effective is to make an automatic transfer to this account. And you administer this account: you choose on which support you place if it is a life insurance for example. Every year, you can choose to do re-arbitrations to change that, if one of the funds did not perform or if you have a better plan.
The goal is to stay at the highest possible rate. Years, you can do + 40%, others -20% … The average, of course, must be positive. Knowing that to recover a -33%, it takes a + 50%! The idea, in there, is to cumulate the interests during the years. The problem with this method is that you are rich when you reach the age where you can no longer enjoy it. The advantage?
You do that without much problem. But you have to start really early. This allows us to take full advantage of the time leverage through compound interest. Because on a 10% / year account, you double your stake after 9 years (instead of 10 years), and you quadruple your stake after 17 years … etc. Finally, the calculations are not necessarily good, but it is to give you an idea. It’s a very long time and you have to leave the money in the account for it to grow. It is very well to do in addition, to prepare for his retirement for example.
Real estate investment
It is to buy real estate to resell them by making an interesting value, or to rent them. The goal here is really to make big gains. The idea is to look for a good that is cheaper than the market price (a seller in a hurry to sell, a succession … etc): the possibilities of negotiation are greater. And we can lower the price. For this, do not go through independent agencies or sellers who will tell you that if you get to have a good market price + 30% is good! Trust only you, or a real estate hunter.
Having an apartment below the market price allows us to release an interesting value or regular cash flow. In general, we look for properties to retype. They are an interesting price level, it is something really nice, a little home staging and the good is immediately worth. And we sell (or we live in a moment before reselling to avoid paying taxes on the surplus value, this is still valid, but I do not know for how long) by releasing several tens of thousands of euros of profit. And we start the operation again.
Otherwise, you can buy to rent. In the long run, I find that much more interesting. For the shot, on the other hand, it takes time too. The idea here is still to find an apartment cheaper than the market price and to do something nice to be able to rent it more than what is paid back to the bank: it allows to release cash flow, and not to lose too much in debt capacity. And we can repeat the operation several times.
There is the seasonal rental that works better and better and increases income (because seasonal is more risk and constraints and therefore it costs more than a normal apartment). It takes time to rent, but we create a rent for life, so this is the method I prefer. Real estate has a huge advantage, it is that you can borrow for the purchase, and you do not need a lot of cash, you can start from scratch, and succeed fairly quickly.
Create a startup to resell it
BlogOn can create a box with the ultimate goal of reselling it. Something that works well and that we can sell to a big account. Or has another entrepreneur/investor. The startup, or at least the business, is the fastest thing in my opinion. On the other hand, it is a lot of stress, a lot of time and implication. And it’s not forced to walk. Moreover, there is one startup out of 10 that is hard, 2 that work rather well, and 7 that will average.
But if not, you can also create a business (not to mention a startup), and sell it also a few years later, if it works of course. Obviously, in practice, it is not as simple as in this article. The entrepreneurial adventure is very special. It’s very hard, mentally and physically, and it costs a lot. In addition to that, we take risks. But when it pays, it pays really well.
Create A Business In The Long-Term
The other choice is also to create a business in the long term. If the business is working well, you will be well paid like a boss. This will allow you to enrich yourself, and buy you your home, and your car without much problem. And you can sell your box, then to release a little interesting value, especially if the box works well, it’s a good retirement bonus. Do not forget that our dear state will take you 66% (it seems to me), to be bled and have managed your box.
But cannot undertake who wants. It’s a particular state of mind. Either we love it or we hate it. You have to be ready for ups and downs. For me, this is the best way to enrich oneself to couple with others (a big salary with a company, and real estate investments coupled with monthly savings). To diversify everything.
If you want to create a company that really sucks, you have to decorate your time with your money, you have to find leverage. Like franchises, for example. But you have to find a way for the box figure to increase without you increasing the time spent on it because your time has limits, you only have 24 hours a day. So you have to constantly find new ways to leverage your resources and be a real manager: when you start you manage HR, investment, etc … It is not we who do the executive or any less than at the beginning (or lack of means, one must do everything oneself).