Let Me Teach You To Be Rich

Let Me Teach You To Be Rich

by -
The Richest Man in Babylon

You have heard that common sense is the least common of all the senses. This also applies in amassing wealth. A lot of people know the common ways that many others have gotten very very rich but ignore their teachings and keep saying to themselves I can’t do it. Their own negativity keeps them down.


There are thousands of books on managing wealth and many of them are essentially blue prints and a gateway to the world of riches. So get off your ass and head over to the library and pick up a book, download one or borrow from a friend. One of my favorites is

The riches man in Babylon

It is the number one book I recommend to my friends and the first book anyone who wants to improve their finances should read. And after you have learned the basics in reading good books such as this one and another favorite of mine I am reading at the moment,

A random walk down wallstreet

can you then begin to understand what others have done?

And my all time favorite investing book of all time.

The Intelligent Investor

This is a book that anyone interested in investing in the stock market, wanting to amass wealth and grow it needs to read. It explains it all, from the market, individual stocks, mutual funds, index funds and pretty much everything you need to know about the market. And it’s available on kindle and other reading platforms.

And once you get into that mindset of saving your money, make sure you do so consistently. And the only way to do that without forgetting is to


Everything can be linked nowadays. So there is no excuse to be made for not saving even a little bit each month or how ever often you get paid. Passively saving money is best for most people who are too busy to actively manage their finances.

A little bit saved goes a long way and the power of compounding interest only becomes more of your friend as times goes on. There are many types of accounts that allow you to invest automatically each month. Sharebuilder has such an account. And they also have dividend reinvestment linked to it. That means, whatever dividends the stocks you own pay you, Sharebuilder will reinvest those dividends for you for free.

Be frugal

There is a huge difference between a need and a want. Don’t fall victim to your desires to have the best next thing not because you need it but because everyone else has it. There is nothing worst than living from pay check to pay check. And the truth is, you don’t have to.

Living frugally doesn’t mean you don’t treat yourself ones in a awhile. It means living below your means. Just because you make $3000 a month doesn’t mean you have to spend $3000 a month. And if someone has told you otherwise, it was a bold face lie. Nothing can be further from the truth.

In fact if you make $3000 a month and you don’t have children, high interest credit card or other form of debt that is draining you and needs to be paid off quickly, and you are not saving $1000 or more a month, you are definitely not living frugally. You are splurging and that is not good for your financial future. Invest your money and let the money you invest make you money. But I must warn you as you have probably heard many a times

Don’t try to beat the market

The only way to get rich is to get rich slowly. This takes a lot of ambition, drive, a desire for better things and a willingness to save in order to have those things. Don’t fall for the get rich quick schemes.

The way to reach financial independence is to do so consistently and with a goal in mind. There are three funds you can buy that will get you there over a period of time.

There is the Vangaurd International stock index fund
There is the U.S Stock market index fund
And there is the Vanguard Total bond market index fund

With these in your portfolio, you can’t get more diversified than that which is the key in averting risk in the market. These funds cover the bond market, international stock market and the U.S stock market so you would be well covered. And it’s a good start before learning to pick and buy individual stocks.

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