The Fifth Step

Emergency Funds for the Business

You must use the money from the work you are doing in your free time to save up emergency money for the business. Just like you had to save up emergency money for yourself before you started to invest in this side business. An entrepreneur needs to always have fallback options. Only the very lucky survive without one; you don't want to rely on chance, because the odds aren't good. So, save up emergency funds for your business. Remember, your business has a life of its own. Entrepreneurship is creating a life; this life will be your slave, working to earn you money forever.

The Fourth Step

The Fourth Step in making money is to find a way to work for yourself. This means you must start a business. However, this does not necessarily mean that you must start a traditional company. What it does mean, is that you must find a way to earn money on your own. This can be starting a company, but it can also be to invest in something like rental real estate. If you start a traditional company or buy rental real estate, you are earning money through a source other than your job. This is important because it sets you to work on your own, which comes with enormous benefits we will take advantage of in the following steps.

Obviously, this needs to be part time; you must utilize your free time. They say the only difference between a successful person and an unsuccessful one is what he or she does in his or her free time. Eventually, however, this side business will be so time consuming (and producing enough extra income to live on) that you must quit working for your employer.

If you are self-employed, this step is already completed. Move on to the next.

The Second Step

Increasing Your Income -

The second thing you must do is to increase you income. You can do this a number of ways; for most people, this involves getting a higher-paying job. To do this, you can either go to college or some type of technical school, which can get your foot in the door for a higher paying position. As an alternative to getting a higher paying job, you can get a second job. Some people can start a business, but that's not always doable at this point.

The Third Step

The third step on your path to riches is saving money. You simply must save money if you are to become rich. Many people have a hard time with this one. However, it is critical. If you do not save money, you will never have a seed which you can plant. You need a solid chunk of money in order to grow it. Also, for basic financial planning, you need saved money for emergencies. If you don't have any emergency money, you may have to use up your investment money in case of an emergency.

Steps to Riches

There are several steps to getting rich, but the first is frugality. If you are not frugal, there is no way to become wealthy. Frugality allows one to increase the amount of money leftover for investment. Instead of being spent and wasted on unneccessary consumer goods, the money can be used for things that will make you rich. A common rule is to save ten percent, but this is just a guideline. What you really need to do is to save as much as possible; you do this by spending as little as possible. Thus, being frugal.