9 answers
1
Question
9 answers
Paul Goetzinger MPA
Academic and Career Consultant and Freelance Writer, TRIO Program Administrator
1009
Answers
Updated
Paul’s Answer
You might try the 50/30/20 rule, which is a straightforward budgeting philosophy that includes dividing your after-tax (net) monthly income into three main concentrations: 50% for essential needs, 30% for personal wants, and 20% for savings and debt repayment. Here is a breakdown of the three areas:
Needs (50%): These are mandatory expenses for survival and basic well being.
Housing: Rent or mortgage payments, property taxes, and homeowners insurance.
Utilities: Electricity, water, heat, basic phone service, and internet.
Transportation: Car payments, fuel, insurance, maintenance, and public transit.
Groceries: Basic food and essential household items.
Obligations: Minimum debt payments (credit cards, student loans) and childcare.
Wants (30%): Discretionary spending that improves quality of life but is not essential.
Leisure: Dining out, vacations, and travel.
Entertainment: Streaming services, movies, concerts, and hobbies.
Splurges: Luxury clothing, high-end electronics, and gym memberships.
Savings and Financial Goals (20%): Funds dedicated to long-term financial stability and wealth
Emergency Fund: Building a cushion to cover 3–6 months of living expenses.
Retirement: Contributions to 401(k) plans (after employer matching), IRAs, Stock portfolios or index funds. The investments is where you can really start on the road to becoming wealthy.
Debt Reduction: Extra payments beyond the required minimums to pay down debt faster.
Unless you win a lottery, the basic rule of becoming wealthy is saving and investing over a long period of time. Stock portfolios are a good example. Over time the market has always been progressively going up (no matter what political administration is in office). It is always a good idea to consult with a wealth manager, at an investment firm, so that you can set up a plan to help you achieve your financial goals.
Needs (50%): These are mandatory expenses for survival and basic well being.
Housing: Rent or mortgage payments, property taxes, and homeowners insurance.
Utilities: Electricity, water, heat, basic phone service, and internet.
Transportation: Car payments, fuel, insurance, maintenance, and public transit.
Groceries: Basic food and essential household items.
Obligations: Minimum debt payments (credit cards, student loans) and childcare.
Wants (30%): Discretionary spending that improves quality of life but is not essential.
Leisure: Dining out, vacations, and travel.
Entertainment: Streaming services, movies, concerts, and hobbies.
Splurges: Luxury clothing, high-end electronics, and gym memberships.
Savings and Financial Goals (20%): Funds dedicated to long-term financial stability and wealth
Emergency Fund: Building a cushion to cover 3–6 months of living expenses.
Retirement: Contributions to 401(k) plans (after employer matching), IRAs, Stock portfolios or index funds. The investments is where you can really start on the road to becoming wealthy.
Debt Reduction: Extra payments beyond the required minimums to pay down debt faster.
Unless you win a lottery, the basic rule of becoming wealthy is saving and investing over a long period of time. Stock portfolios are a good example. Over time the market has always been progressively going up (no matter what political administration is in office). It is always a good idea to consult with a wealth manager, at an investment firm, so that you can set up a plan to help you achieve your financial goals.
Donna Paige
Human Resources/Phlebotomist/Medical Assistant/Students entering into the workforce
12
Answers
Updated
Donna’s Answer
Hello Simariah,
I, myself, am not rich. However, my understanding of being "rich" is having financial freedom, a high income, assets, and a sense of security. You can increase your earning potential by developing various skills and choosing careers with growth opportunities.
I think it is important to save regularly & invest in things like real estate, stocks, these are common ways to build long-term wealth. Another way is to, make sure your expenses are lower than your income. To me, wealth is about what you save and invest, not just the amount in your bank account.
Most wealth is built over time through discipline, rather than quick gains.
Donna :)
I, myself, am not rich. However, my understanding of being "rich" is having financial freedom, a high income, assets, and a sense of security. You can increase your earning potential by developing various skills and choosing careers with growth opportunities.
I think it is important to save regularly & invest in things like real estate, stocks, these are common ways to build long-term wealth. Another way is to, make sure your expenses are lower than your income. To me, wealth is about what you save and invest, not just the amount in your bank account.
Most wealth is built over time through discipline, rather than quick gains.
Donna :)
Updated
David’s Answer
Regardless of your chosen career path (high-salary job or entrepreneurship), the real key to building wealth is what you do with your earnings. You must master the fundamentals of personal finance and investing starting now. This includes: paying off any high-interest debt quickly; creating a strict budget to live below your means (essential for an early career); building an emergency fund (3-6 months of expenses); and, most critically, investing consistently. Take full advantage of employer-sponsored retirement accounts (401(k)), especially if there is a company match, and open a separate Individual Retirement Account (IRA). The power of compound interest over a long time horizon is the single biggest tool for wealth creation, so start investing a portion of every paycheck into diversified, low-cost assets like index funds as early as possible to let time do the heavy lifting.
Updated
Yasmin’s Answer
Hi Simariah👋🏻...
Becoming “rich” isn’t just about luck...nit’s about building skills, habits, and opportunities over time.
A few key steps:
1. Invest in yourself: Learn valuable skills that are in demand, problem-solving, coding, business, finance, or leadership. The more you can do that others need, the more you can earn.
2. Save and invest early: Don’t wait to start saving. Even small amounts compound over time. Learn about stocks, funds, and other ways to grow wealth.
3. Create multiple income streams: Relying on one source of income is limiting. Freelancing, a side business, or investments can grow your wealth faster.
4. Take calculated risks: Many wealthy people took risks with education, businesses, or investments—but they planned carefully and prepared for setbacks.
5. Think long-term: Avoid get-rich-quick schemes. Consistency, patience, and learning from mistakes are what build lasting wealth.
Ultimately, focus on skills, smart decisions, and disciplined habits... money follows those who create value and manage it well.
Becoming “rich” isn’t just about luck...nit’s about building skills, habits, and opportunities over time.
A few key steps:
1. Invest in yourself: Learn valuable skills that are in demand, problem-solving, coding, business, finance, or leadership. The more you can do that others need, the more you can earn.
2. Save and invest early: Don’t wait to start saving. Even small amounts compound over time. Learn about stocks, funds, and other ways to grow wealth.
3. Create multiple income streams: Relying on one source of income is limiting. Freelancing, a side business, or investments can grow your wealth faster.
4. Take calculated risks: Many wealthy people took risks with education, businesses, or investments—but they planned carefully and prepared for setbacks.
5. Think long-term: Avoid get-rich-quick schemes. Consistency, patience, and learning from mistakes are what build lasting wealth.
Ultimately, focus on skills, smart decisions, and disciplined habits... money follows those who create value and manage it well.
This was super helpful, thank you!
Brianna
Updated
Bijoy’s Answer
Success begins with a dream and grows with effort and commitment. Look at Steve Jobs: he didn't just create gadgets; he transformed how we connect. Building wealth is simple: identify a big problem and solve it. If you can make a product for 40 cents and sell it for a dollar to many people, you'll do well. Innovation is key—it could be a simple idea or something futuristic, like a pen that writes on a 3D wall. Always remember, good health is your greatest wealth.
Teklemuz Ayenew Tesfay
Electrical Engineer, Software Developer, and Career Mentor
517
Answers
Updated
Teklemuz Ayenew’s Answer
Becoming rich starts in your mind. If you constantly think scarcity, believe you’re poor, or focus on lack, your actions will reflect that, blocking opportunities to grow wealth. Developing an abundance mindset, believing that resources, opportunities, and success are attainable, and that you deserve them, is the foundation for all financial and personal growth. Define what wealth means to you, set clear goals, and cultivate confidence, optimism, and creativity. Learning from those who have achieved success is crucial, and reading books such as The Intelligent Investor, Rich Dad Poor Dad, The Millionaire Next Door, The Richest Man in Babylon, I Will Teach You to Be Rich, and The Automatic Millionaire can provide practical knowledge, strategies, and habits to grow wealth. Continuously upgrade your skills, adapt to trends, and take financial training classes to expand your understanding and stay ahead.
Having expertise, knowledge, or professional experience in in-demand skills allows you to earn more and create value. Focus on increasing income through career growth, entrepreneurship, or smart investments, while saving and investing consistently to take advantage of compound growth. Good money management is just as important as professional success. Live below your means, avoid unnecessary debt, budget carefully, track expenses, automate savings and investments, and build an emergency fund. Create multiple streams of passive income, such as rental property, dividends, or royalties, and diversify your investments to reduce risk. Protect your wealth with insurance and plan for taxes. Surround yourself with mentors, peers, and industry leaders, as opportunities often come from connections. Maintain physical and mental health to sustain energy and focus, and nurture faith or personal values to guide decisions and build confidence. Take calculated risks, track your progress, and act persistently. Wealth is usually accumulated gradually through smart decisions, patience, and leveraging time effectively, reflecting the richness of your inner world, with mindset, health, and values forming the foundation for lasting financial and personal fulfillment.
Having expertise, knowledge, or professional experience in in-demand skills allows you to earn more and create value. Focus on increasing income through career growth, entrepreneurship, or smart investments, while saving and investing consistently to take advantage of compound growth. Good money management is just as important as professional success. Live below your means, avoid unnecessary debt, budget carefully, track expenses, automate savings and investments, and build an emergency fund. Create multiple streams of passive income, such as rental property, dividends, or royalties, and diversify your investments to reduce risk. Protect your wealth with insurance and plan for taxes. Surround yourself with mentors, peers, and industry leaders, as opportunities often come from connections. Maintain physical and mental health to sustain energy and focus, and nurture faith or personal values to guide decisions and build confidence. Take calculated risks, track your progress, and act persistently. Wealth is usually accumulated gradually through smart decisions, patience, and leveraging time effectively, reflecting the richness of your inner world, with mindset, health, and values forming the foundation for lasting financial and personal fulfillment.
Updated
Morgan’s Answer
Hello!
Being rich can mean different things, like having a high income or financial freedom. There isn't one sure way to get there, but you can try some strategies to improve your chances. If you're young, think about saving money by investing and making smart financial choices. If you're not in college yet, consider starting at a community college before moving to a big university. Look for scholarships or grants to avoid student loans, which can take a long time to pay off. Find a career you love and grow in it. Don’t choose a job just for the money, as it might make you unhappy. Live with family as long as possible or share a place with friends to save money. Avoid spending on unnecessary things. Remember, not everyone who is rich is happy. Find a job you like and live within your means.
Being rich can mean different things, like having a high income or financial freedom. There isn't one sure way to get there, but you can try some strategies to improve your chances. If you're young, think about saving money by investing and making smart financial choices. If you're not in college yet, consider starting at a community college before moving to a big university. Look for scholarships or grants to avoid student loans, which can take a long time to pay off. Find a career you love and grow in it. Don’t choose a job just for the money, as it might make you unhappy. Live with family as long as possible or share a place with friends to save money. Avoid spending on unnecessary things. Remember, not everyone who is rich is happy. Find a job you like and live within your means.
Updated
Zarle’s Answer
Becoming rich requires various factors over time, such as smart investing, financial discipline and investing. To achieve the rich status can be a long-term process of building wealth rather than a quick fix. Here are a few tips that can get you started on the path of becoming rich:
1. Spend wisely on the things that are most needed and less on the wants.
2. Develop new skills such as high-value skills that can lead to higher salaries.
3. Develop a side hustle or business on products or services that you can upgrade that is already established.
4. Avoid lifestyle inflation. Resist the urge to increase your spending on non-essential items. Invest your extra money.
5. Avoid many credit cards and or personal loans. Obtain one major credit card and use it wisely.
6. Save, Save, Save. Put as much money you can from all earnings into bonds, stocks, and real estate.
7. Read any and everything about financial literacy, investing, taxes, money management and personal finances from blogs, books and take courses.
Consistent saving and investing over a period of time can get you off to a start. There are no guaranteed shortcuts, but starting off with a financial plan and consistent execution can be a way to achieve financial independence.
Hope you all the best!
1. Spend wisely on the things that are most needed and less on the wants.
2. Develop new skills such as high-value skills that can lead to higher salaries.
3. Develop a side hustle or business on products or services that you can upgrade that is already established.
4. Avoid lifestyle inflation. Resist the urge to increase your spending on non-essential items. Invest your extra money.
5. Avoid many credit cards and or personal loans. Obtain one major credit card and use it wisely.
6. Save, Save, Save. Put as much money you can from all earnings into bonds, stocks, and real estate.
7. Read any and everything about financial literacy, investing, taxes, money management and personal finances from blogs, books and take courses.
Consistent saving and investing over a period of time can get you off to a start. There are no guaranteed shortcuts, but starting off with a financial plan and consistent execution can be a way to achieve financial independence.
Hope you all the best!
Updated
Cassie’s Answer
The first thing to do is get very granular and specific about your own definition of “rich.” What does that actually mean for you? How much money do you have? Where do you live? Who are you providing for? What do you own? What does your house or car look like? Once you’ve answered these questions and defined what “rich” means to you, choose one or two people you admire who are living something close to that life and look for ways to shadow or learn from them.
Another helpful step is to research which careers typically offer the highest earning potential and then take an online strengths or career assessment. From there, look for the overlap between high-earning career paths and the areas where you naturally have strong skills and interests.
Another helpful step is to research which careers typically offer the highest earning potential and then take an online strengths or career assessment. From there, look for the overlap between high-earning career paths and the areas where you naturally have strong skills and interests.