If somebody ask you, “whether you have a strong obsession for rich quick ?”, I believe that some of you will say YES ! People who say NO just those who are recognized as rich by society, already felt rich, don’t have any personal finances planning in their life’s profession, or the person who doesn’t so sure about the question itself. Couldn’t be denied that any person who have started thinking about money, in nature have a desire to become wealthy themselves. Second and third very natural questions are, how to become rich and how long the time will be needed to become rich?

Well, for the one who said YES to the first question mentioned above, I just want to emphasize here that there’s no instant and easy way to get rich very quick, through natural ways to pursuit it. Yes, several persons got lucky by getting $ 10,000,000 grand prize amount and directly come into the rich. Other persons tried to do some criminal actions such as robbery, corruption, which has huge risk to bring them into the jail. But that’s different issue I think, because mostly people will think how to get rich with their natural efforts and try to live their life in comfortable way instead of doing such extreme actions.

For my own, I classify myself as a person who doesn’t so sure about the question itself. In my view, no one will be able to become rich quick through natural way, except they was born from old rich family. Each person should strive to become rich, times and efforts also required during the struggle. For that reason, I more interested in second and third questions of personal finances, namely how to become rich and how long our expectation to achieve it.

Robert T. Kiyosaki in some parts of his financial advice of famous book The Cashflow quadrant suggests people to move from employee and self-employed quadrant to investor and businessman quadrant in order to achieve financial freedom more quickly. To some extent, I agree with the opinion, but the fact is mostly people don’t have the same perception one to another about the meaning of the word “rich”. One quite extreme figured example, there are people who have felt rich when they have enough $ 10 thousands money in their savings, but there are also those who don’t feel rich still even though have time deposits of $ 10 millions. Other aspect is different people have different interests, and this interest is guiding people to enter the most possible quadrant for themselves. For example, people who used to (and enjoy) a hard day-to-day activities, will be more inclined to be a self-employed or employee than to be a businessman who usually do more lobbying and controlling activities. So that I think everyone can become rich and achieve their financial freedom regardless of the quadrant where he is.

As a soul of basic personal finances, there are some steps that I would like to recommend as a financial advice to become rich;

• First step and the basic of all, just find the meaning of word “rich” for our own, and set the time target how long time we need to reach it!

Everything must be described quantitatively, at least compared to the needs of our lives with a certain lifestyle. For example, the meaning of rich for me is to have monthly income (active income plus passive income) equal to twice of my monthly needs, having liquid assets in the form of savings, security deposit, or marketable securities that guarantee the monthly needs for two years, and I determine the target within 5 years to achieve it. In addition, I may also have another target for certain amount of savings to secure my pension stage period, and I expect to achieve that amount at my pension year-age. The goals will be widely vary depending on our personal preferences.

• Second step, regardless of the quadrant where we are, just ask ourselves whether our current routine income enables us to achieve our goals ?

If the answer is NO, this means we must try to make it into YES. There are various ways to do it, ranging from thinking about some additional revenues, to find a job with a larger income, or move to other quadrant either directly or gradually. The important thing is, make sure we have the revenue that allows us to reach the target.

• Third step, which should be done simultaneously with the second step,

is to create monthly personal finance budgeting, well quantitatively describe our monthly income and monthly expenses, with a target amount of money that we can save each month. This step will lead us to be focused on the main goal, and allows us to make the short-term targets (says the annual target) as an “anchor target” without losing our focus to achieve our main goal.

• The most important fourth step,

is to periodically review the first step towards the third : our main long term target, efforts made during the process towards achieving the target, and monthly personal finance management. This will help us to be very focused in the efforts to develop our routine revenue, analyze achievement of “anchor target”, and allows us to revise / make adjustments of the final target in accordance with development of our monthly income, changing or addition of preference, and the time remaining to reach the final target. This adjustment will be very important because above of all, we must have quite realistic target to achieve in the end. Don’t let ourselves to be stressful because of having a not realistic goals !

Those four steps mentioned above is a basic foundation of personal finances, to make our life financially well arranged, and finally become one tool to achieve our life’s ultimate target, ie happiness with enjoyable daily life.

Shortly noted that high-discipline and sufficient efforts are required to consistently run the four mentioned steps. If the steps are done correctly, I hope that this financial advice can assist all of us to become rich, one word that we dream about.

“The rich-talented persons always asking how to make more money out of time and money they had; on contrary the persons who always ask about some places to spend their money, will be stuck in a circle of hard work to pay their lifestyle”

Tags: financial advice, Personal Finance Budgeting, Personal Finance Management

If you enjoyed this post, make sure you subscribe to my RSS feed!