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Many people dream of being rich, though what that means varies widely among people of different backgrounds and experience. To some, it means never having to worry about expenses. For others, it is not working so many hours. Others define it as complete financial independence.
No matter what your definition of “rich” is, experts offer suggestions for how to get on the road to greater wealth.
Learn: Here’s How Much You Need To Earn To Be ‘Rich’ in Every State
Also Read: 25 Secrets Every Rich Person Knows
What Does It Mean To Be Rich?
“Being rich means having time freedom and location freedom, to do the things that matter to you,” said Andrew Lokenauth, CEO of Fluent in Finance LLC. “Wealth often comes first from being frugal. Many millionaires are wealthy because they know how to keep and invest their money — and not spend it on unnecessary things.”
Beyond frugality, Kyle Kroeger, finance expert at The Impact Investor, extends the definition of rich to mean “someone (who) regularly earned enough to be far from troubled paying their fixed expenses such as rent, electricity and other utilities, car maintenance costs, health insurance and educational expenses.”
Find Out: How Much You Need To Be ‘Rich’ in 50 Major US Cities
Pay It Off
Rich people know debt holds you back.
“If you’re looking to get rich, stop carrying so much credit card debt,” said Matt Dixon, RFC partner and financial advisor at TruNorth Advisors. “You need to organize your debt and start attacking the lowest balance first by paying as much as you can on that card all while maintaining minimum payments on your other cards. This doesn’t mean you should never use a credit card, but make sure you use it responsibly and make your monthly payments.”
How To: Make a Debt-Free Future Your Reality
Watch Your Risk
Additionally, consider whether you’re playing fast and loose with your finances, because, Dixon said, “Wealthy people try not to take on too much risk and are very detail-oriented. Be selective about the opportunities you are going after. Make sure your portfolio is diverse. Try investing in real estate or land. A diverse portfolio can help you hedge against the ups and downs of the market.”
Start Your Own Company and Sell It Later
If you’ve got an entrepreneurial spirit, consider starting a company you can sell for bigger bucks, said Jared Bauman, co-founder and CEO of 201 Creative LLC, a digital marketing agency.
“To be more successful,” he said, “it is preferable to come up with an innovative solution to a specific problem in the market and start a business around it. … However, if you succeed, you’ll reap enormous rewards. This is a common practice among wealthy individuals.”
Also See: How To Support Women-Owned Small Businesses
Participate in a Startup and Receive Stock
Startups still abound, and they’re always seeking new blood.
“If you can acquire equity positions in one or more start-up companies, you could …….