I Read 12 Books On Becoming Rich. Here’s What I Learned.

5000 pages. You get the lessons in 5 minutes.

Why is this guy my age driving a Lamborghini and I’m broke and sitting in class?

That’s what I thought when I was bored sitting in class and scrolling through Instagram about a year ago. To find an answer to this question I have read one book after the other on this subject.

The Millionaire Fastlane, The Almanack of Naval Ravikant, Rich Dad Poor Dad, and 9 others to be exact.

I have spent countless hours studying these books. Well, you’re lucky enough to get the most important lessons in just a few minutes.

1. The Right Paradigms

To join the top 1 %, you have to stop thinking like the 99 %.

There are some paradigm shifts that can literally make you millions.

• Money is the root of all evil. If you want to become rich, you have to stop believing this. A good person who becomes rich will probably stay a good person and will use the money wisely. A bad and rich person would probably also be a bad broke person.
• Most people think that money is scarce. The rich understand that money is abundant. In fact, the central banks were printing nonstop for the last few years. How much money you make is simply a measure of how much value you create.
• Poor people trade their time for money. Even though they hate their jobs. Understanding that time is actually far more valuable than money is a powerful motivation to find more efficient and more passive ways to get paid.

2. Take Risks

Starting that business can be scary. Investing your money might seem too risky. However, always playing it safe is definitely not the way to become rich.

“The biggest risk is not taking any risk” — Mark Zuckerberg

Something that most wealthy people have in common is that they were courageous enough to take some risks at some point.

However, the risks you take should be calculated. Risk management is key as well. Don’t take any stupid risks that might completely ruin you financially or even worse, kill you.

3. Learn From The Right People

Education is essential to becoming rich. This is why you have to learn as much as possible. To do so, you don’t necessarily have to go to college.

Even Steve Jobs dropped out of college.

Don’t confuse schooling with education. I didn’t go to Harvard but the people that work for me did

— Elon Musk

It has never been easier to learn about pretty much everything. If you are willing to learn, the internet offers you everything you need.

4. Create Value

Money is a store of value. If you want people to give you their money, you have to offer them something of value in return. Unless you are a scammer, which I don’t recommend.

How much money you earn is the result of how much value you provide to how many people. The more value you provide, the more money you’ll make.

To make a million, you could either provide a little value worth $1 to a million people, something incredibly valuable to one person willing to pay you a million, or something in between.

In other words, scale and magnitude determine how much you make.

“Scale makes millionaires. Magnitude makes millionaires. Scale + Magnitude makes billionaires.” -MJ Demarco

5. Create Leverage

Most people work for a fixed hourly wage. They exchange one hour of working time for x dollars.

If you want to earn a lot of money, you run into a problem: time is not scalable.

This is why you have to find some form of leverage to decouple your income from your limited working time: The three main forms of leverage are:

• Labor. People work for you and make you more money.
• Money. Your investments make you passive income.
• Digital products. Use the Internet to leverage your reach. An article only needs to be written once but can be read a million times.

Read the following article to learn more about leverage.

6. Spend Less Than You Earn. Invest The Difference.

This one should be common sense. However, many people fail to do so.

Dennis Rodman is a famous example. The famous basketball player has earned many millions during his career, but today has a net worth of only $500,000.

Earning a lot of money does not mean becoming rich. Bad spending habits can mess you up financially. This is why you have to resist the urge to impress everyone and instead put your money into things that will make you more money in the future.

You have to understand assets and liabilities. Assets make you more money, liabilities cost you money.

To become rich, you should focus on buying assets like stocks, crypto, and real estate instead of spending your money on liabilities like expensive cars.

Thanks for reading!

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