Monday, June 29, 2009

Definite path to riches

There is one definite way of becoming rich. Unfortunately, this aspect is not as highlighted by get-rich-quick authors. Perhaps, it is taken as given.

Let us get some facts in place first.

1) I am assuming you do not have an infinite source of income.
2) I am assuming you have a profession other than being a Stock Broker.

If these two conditions are met, then there is only one guaranteed way to riches.

Excel in your profession. Become real good at what you do. Reach a position where the the income is much more than your and your family's need for a more-than-a-comfortable life. Invest the excess money so that you can maintain your standard of living even after retirement.

This may take about 20 years of hard work. Meanwhile keep saving and investing wisely so that you do not sink your hard earned money.

You find this piece amusing. I assure you that is not the intend.
Check out the richest people in the world. Let me know if you find any one - apart from royalties - who has not excelled in his/her chosen domain.
Check out the people who live in your neighborhood. The families that are well off would have at least one person doing very well in his profession (CEO / General manager / Whatever).

The path to riches can summarized as follows:

Save & Invest Wisely - Excel in your profession - Use excess money to invest aggressively

This goes totally against the conventional advise of investing aggressively when you are young and invest safely when you are old. The old advise is for people who are average. Not for people who are capable.

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