08/08/2014 07:11 pm ET Updated Oct 08, 2014

How to Become Rich

There are many people who are inquisitive about the road to affluence. Some may accuse kismet for the amount of wealth they end up with. But then how do we spell out those many people who go bankrupt only to become rich again around 2-3 times in their lives?

Contrary to popular belief, any one can become rich. Yes, I mean ANYONE. Your gender, race and whether you graduated from college or not is immaterial in deciding your fate in this arena.

So how can you ensure success in hoarding some money?

Start with a plan

What is becoming rich? It is nothing more than a plan. Yes, that is how simple it is. So start by drafting a strategy today, and make sure you follow it. This plan must include your savings, earnings and spending.

Instead of belly-aching about your monetary dearth and just sitting and yearning for richness to happen, work towards making some cash crop up for you. Outline a budget which sets a framework of how much money you bring in, how much you can collect and what your costs are.

But if it is really that simple, why isn't everyone rich? Let's dig a little dipper then, shall we?

The curse of borrowing

There is no annotation required to expatiate upon why you shouldn't spend what you don't have. Credit cards may be useful in transitorily relieving you from your financial problems, but what it also does is make you believe you have more than you really do.

Result? You get buried under huge debts, which may pile up to become mammoth deficits that you cannot make up for.

Everyone feels good about buying expensive things. But the main reason people aren't rich is because their spending habits do not warrant them to be. Credit cards allow people to live beyond their means without realizing it.

The problem is simple: You end up spending more than you actually have, and if you continue with this lifestyle, you will never be rich .

So what have we learnt here? No harm in a poor today for a rich tomorrow.

Emergency fund for funding emergencies

You must have witnessed many experts proposing a total sum of at least three to six months worth of your living expenses to be stored in your emergency fund. This vault provides you with the cushion you need to brace yourself for events from left field. This may be easier said than done, but there are so many situations that can result in a financial emergency: a job loss, a medical expense, etc.

So how do you start?

Incontestably, it will be difficult to immediately collect your living expenses for just one month, let alone that of six whole months. So start small. This will make your goals more attainable.

Also, it is always better to keep your emergency fund in a savings account, because it not only costs less but is also very simple to maintain.

Look for investment opportunities

Our brain is programmed in a way that only when we are conscious of something will we actually address it. The first step is to make investing a priority. Only then will you be watchful of the opportunities pertinent to investment.

Instead of buying products from companies, is it not better to buy the company itself?

Also, start investing as early as possible in something which you have an understanding of. Do not wait for having enough money to invest.

Start with small amounts initially and continue adding on to it.

Thinking ahead

A friend once told me that she prefers to revel in her money today rather than use it to be rich 5 years later. But what is also important to remember is that where you are today is a result of the decisions you made 5 years ago.

Wealth does not happen overnight. If you wish to change your monetary scenario in the future, it is crucial to have a farsighted approach towards your finances from today.

So either start to change your pecuniary tableau from today, or learn to be content with it for the rest of your life.

Ending Note:

The marvel of life is that where you are headed is more salient than what you are today. As long as you have vowed to make changes in your life, progress is inevitable since each passing second will bring you closer to your financial goal.

This process is something you should never forget to enjoy.

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