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By: Sam Instone

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June 7th, 2018

How to get wealthy (over time)

Financial Education

I recently discovered Safal Niveshak.

Meaning ‘successful investor’ in Hindi, it’s a blog created by Vishal Khandelwal, aimed at helping investors become intelligent, independent and successful.

His ideas about wealth and investing are interesting.

And I want to share one with you.

One which I think about almost every day…

Life is simple.

Why do we make it so hard?

Firstly, let me thank Vishal for his recent post How to Get Wealthy (Over Time), which I have used below.

Around 2,500 years ago, Confucius said,

“Life is really simple, but we insist on making it complicated.”

This is never truer than when it comes to money.

Consider saving money and investing it well over a long period of time.

This is all you need to create wealth.

Simple, right?

But the question again is, why do we make it so hard?

This chart by Vishal talks about the 3 simple steps to get wealthy over time…

How to Get Wealthy (Over Time) 2
Could this get any simpler?

Of course, money isn’t everything in life.

But it does help to consistently spend less than you earn and invest the difference well.

Over time, compounding will do the rest for you.

You need to enjoy the present as much as you must save for the future.

You also need to find ways to grow your income.

But the key idea is that you avoid overspending to keep up with the Jones’s and get into the habit of saving not just spending.

What’s the point of getting wealthy?

I have 3 reasons.

1. If you have money, you don’t have to worry about it.

Now, this isn’t something that is guaranteed.

I’ve seen a lot of rich men who are always worried about their finances.

However, the real idea is that if you save and invest diligently, and you start doing this early in life, you should reach the point where money worries are relatively rare.

2. Money can give you the freedom to pursue your what you love doing.

When you picture your financial independence, what do you see?

Enjoying your life to the fullest given that you’ve ensured that your family’s needs have been taken care of?

Travelling around the world?

Working on a cause you are passionate about?

Saving and investing can help you achieve freedom from your financial worries, so that you can attain complete peace of mind and pursue your passions.

How to get wealthy over time

3. Money can buy you time with friends and family.

Research has found that regularly being with your friends and family can provide a huge boost to your happiness.

And money can help you in this regard.

If you don’t need to work or you only work part time, it helps you spend more time with your family and friends, go on regular holidays with them, and spend other quality time in their company.

You see, you don’t usually need millions in your bank account to spend time with friends and family or pursue your passions.

How to get Wealthy over time 2

But in order to get there your need to begin to save money, invest it well, and repeat this over a long period of time.

Most people don’t follow these steps.

The quicker you grasp this simple idea about saving versus spending, the faster your progress.

Charlie Munger once described the secret of success as

“Take a simple idea and take it seriously.”

Spending less than you earn and sensibly investing that difference well over a long period of time is that simple idea.

If you wish to get wealthy, you need to take it seriously.

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About Sam Instone

Sam Instone, Director at AES International, is passionate about positive change and ensuring expat investors get the best results.

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