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.

How do you define rich?

We have been talking about getting rich. This is the 18th post on this subject. I think it is now time to define what 'being rich' actually means. In one of the earlier post I have quoted Buckminster Fuller that links wealth and the duration that the wealth can sustain you if you quit working today. In my mind, that definiteion is a recipe for post-retirement. And makes lot of sense.

However, the definition of 'being rich' has a social angle to it too. You need to appear rich too. How much you wish to appear rich depends on the people you work and socialize with. It is an entirely an external factor and very few can totally resist it. It is all very well to say that you should not succumb to peer pressure. Most do. To a small or large extent.

And then there is this personal desire. My personal desire to is to have two one-week holidays every year and that these holidays should be spent in comfort. That would mean staying in a 5 star hotel / resort. If I manage to pull this off year after year then I am doing fine.

So, what is this becoming rich thing. Let's sum it up ...

a) Enough money to fulfil your (and your family's) desires.
b) Enough money to conform to your peer group
c) Enough money to ensure that when you retire your standard of living does not drop off.

Now, you may say that there is no limit to desires or that conforming to your neighbour's expectation could spiral your expenses.
Exactly!
The word 'enough' is to be determined by you.
The limits too areto be defined by you.
Once you decide your limits you know how rich you need to be.

Everyone does not have to be as rich as Bill Gates. It is sufficient if you become as rich as you want to be.
Work towards your definition of becoming rich.