We all have that friend. The one who is so much more successful than us that more than friendship, we feel envy. They make way more than us, they have a more expensive lifestyle, and are jet setting across the world.
We might not necessarily like this bit about ourselves, but we can’t deny that this makes us question whether we are doing enough in our lives? How are we going to play catch up?
First, it’s perfectly normal to feel envious of our more financially well off friends. It would be, however, unkind of us to think that our friends got there thanks to just their good luck. More often than not financial success takes hard (and smart) work, diligence, and yes, a bit of luck.
This also means that financial success doesn’t need to elude you.
Financial success is not about others, it’s about you
Financial success is not a set benchmark. It differs based on your needs, lifestyle, dreams, and aspirations. Your envy probably emerges from the fact that your friend’s “salary” is more than yours. So, here’s some good news for you. A great salary is a good thing but it is not the only factor that will decide who ends up rich.
How much of your salary can you save and invest (and how you invest it) is a better indicator of future wealth than the actual salary figure. Conspicuous spending is mostly for show and is actually detrimental to long term wealth creation. You need to also figure out what “rich” is for you. You can learn more about how to that here.
The best way to become rich? Be awesome at something you love.
Compounding is an interesting thing in finance. It shows why even small investments become huge, given time. Now time is the most precious commodity you have in life. You can either spend it doing something you actually like or do something solely because it affords you a high salary.
If you don’t really like your day job, chances are that you won’t be the best at it. For most professions, being really interested in it is the first prerequisite to becoming the best in the field.
When you are the best at something or really good at it, then the chances that you will rise faster and thus unlock greater earning potential, go up exponentially. So do, what you can enjoy working hard towards. Then wealth will chase you rather than the other way around. What’s more, you will have satisfaction, and that’s probably even more important than time.
Becoming wealthy is simple, Save and invest smart
Most wealthy people aren’t exactly geniuses. But they know how to invest well - whether it is their time or money.
If you save a decent percentage of your income (anything upwards of 20% is good), and invest it in inflation beating investments such as equity mutual funds, becoming wealthy is just a question of time rather than random chance.
Focus on leading a good life
There is one truth most smart rich attest to. “Lack of money might cause unhappiness, but excess of it is no guarantee of happiness.”
Living a life where you look forward to your work and doing something with purpose is likely to lead to far more in terms of satisfaction than a life which is all about money. Money is important, but once you have a certain amount of it, which varies from person to person, it will not add to your personal levels of satisfaction and happiness.