How To Become Rich In The Next 10 Years | Lab Of Rich

How To Become Rich In The Next 10 Years

In this blog, you will talk about How To Become Rich In The Next 10 Years. This information is taken from the book "Rich Dad Poor Dad" by Robert Kiyosaki.

Many people think that if their salary is increased then all money-related problems will be solved. But it is not true because most of the people who are living in America have an annual income of 70 lakh and are considered as upper middle class but 40% of them are in debt.

There are 2 main reasons for this 

• Lack of financial knowledge
• Rising expenses with their income 

And due to these reasons, many people remain middle class. Their standard of living has increased but their financial condition remains the same.

Now you might think that how do some people become rich?

So let us discuss some core principles so that you can be Financially Free early in life.

1 - Assets > Liabilities

Assets are those things that put money in your pocket like business, investment, etc whereas liabilities are those things that take money out of your pocket like EMI's.

You should focus on building assets, not liabilities. Rich people buy assets and poor people buy liabilities.

When your salary comes, invest it in assets, and the income that comes from assets, use for your expenses and liabilities.

2 - Cashflow

Cashflow means where your money comes from and where is it spent. Now let us understand the Cashflow of poor, middle-class, and rich people.

Poor People-:

Their income is very low so whenever money comes to them, it gets spent on their daily needs, so they have neither any assets nor any liabilities.

Middle-class People-:

Most middle-class people have a secured job and that job is their asset and a single source of earnings. Despite having assets, they do not maintain their wealth because they spend their money first on needs and then on buying liabilities like bikes, cars, new gadgets, etc.

These things keep on withdrawing money even after purchasing the liabilities because they also have maintenance and EMI's.

Middle-class People have more liabilities than their assets. If they don't get one or two months' income then they will come on the poor class list.

Rich People-:

Whenever the rich get their income, they buy assets from them and use the profit to buy expenses and liabilities which they get from assets.

In short, to become rich, increase your income, reduce your expenses, increase your assets and reduce all the unnecessary liabilities.

3 - Have More Assets

1st Asset - The best asset in the world is knowledge. "An investment in knowledge pays the highest interest and forever."

Knowledge is the only asset that has created the highest number of Millionaires and Billionaires to date. Elon Musk read thousands of books on rocket science and built SpaceX. Warren Buffett has also read thousands of books on investing and today he is the richest investor.

You can increase your knowledge by reading books, watching educational videos, etc

2nd Asset - 2nd best asset is Business/Investing. Business is a great asset and a great source of passive income. If you can start your own business and are confident that you can take it to a next level then you should start your business. 

But not everyone can start their own business but everyone can invest in a business and everyone should invest and start as early as possible. 

Some other assets are 

• Real Estate
• Bonds
• Commodities
• Crypto
• Digital Gold
• NFT's