Getting Rich Just Takes a Few, Simple Steps

I recently received an email from a reader that I thought was worth sharing with all of you. Here's what she had to say:

As I read through the discussion today about whether or not the middle class were whiners or victims (my paraphrase), I was reminded of this Sandra Tsing Loh piece in the Atlantic.

Loh surveys the recent literature on women and finance: how women make less than men; how women's jobs are less valued; how women get the short end of the stick in divorce; how women tend not to negotiate for raises, etc. and she says: Yes, but rather than trying to change the worlds of government and law and business, wouldn't women be better off if, first and foremost, we stopped spending so much? It gets a little scattershot after that moment of clarity, but all in all she has a good point.

Of course, I would also say to Loh you can have both.

This 32-year old woman, for instance, has a healthy 401(k) balance, no debt other than my mortgage, and a good-sized emergency fund. I have consistently pushed for (and received) raises at work, because I provide a valuable service that the company needs and can count on me to deliver. I also have a healthy freelance business that thrives for the same reason.

Most of my friends would be genuinely shocked at both my income and my net worth, because I live well within my means, and have a good time doing it. I don't buy a lot of status accessories...mostly because there's something about knowing that you can purchase a luxury car in cash that makes you less likely to do it. Or at least to wonder if there are better choices for those funds.

As I wrote in Don't Look at Others' Riches -- Become Wealthy by Doing Your Own Thing, you can't judge a financial book by its cover. This lady's friends may see her as frugal and maybe a lower income and net worth than they are. But the truth is, she's likely better off than most of her status-conscious friends. Probably MUCH better off. Why? Because she maximizes her income by managing her career and controls her spending (the real path to wealth).

Would you like to be wealthy? Rich? Just a bit better off? Then read the Free Money Finance Guide to Getting Rich. It lists the few, simple principles you need to follow (like this reader) to be well off financially.

Comments

[kurt]

Part of me wonders if all her friends are thinking the same thing and are indeed much better off than they lead on...

[Chris Huff]

Everyone wants to "get rich quick." If I have to read one more forum post about "I want to get rich by doing abc, I'm going to well...you get the idea.

I'm all for ambition but people have to understand the scams that are going round and how easy it is to get hooked.

Thinking about buying into a "too good to be true" opportunity? Ask a few questions:
1. Are they guaranteeing a return like "guaranteed to double your money?"
2. Are you required to provide some upfront money?
3. Does part of the wealth-building opportunity require that you recruit more people into the program?
Answer yes to any of these basic questions and you're probably looking at a scam.

I'm all for working for more money but I'm not to hip on getting scammed.