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In an interview with the blogger from Financial Freedom Ideas, one of the questions I was asked was whether there is a fast and easy way to prosperity. This million dollar question is asked by everyone, everywhere. Rita P. from Digital Spikes, in a recent post entitled How to rich quick tips and actions, said that you can’t get rich quick, but listed steps that you’d better quickly take if you do want to be rich!
My first reaction to the question about a fast and easy way to prosperity was there is no such thing as a get rich quick scheme so the answer is NO. So does that mean that the path to prosperity is slow and difficult? I don’t think that is true either. It depends on your definition of prosperity. If your definition is driving expensive cars, wearing expensive jewelry and living in huge mansions, then the only fast and easy way is to win the lottery or get a big inheritance. If your definition of prosperity is having financial freedom and independence than I think it can be attainable by many.
Now is it fast and easy?
Let’s start with easy first. I think it is easy, well at least the blueprint is easy. The blueprint is simple: Cut down your expenses, save more money and invest that money. Executing that plan may not be as simple. However, with some hard-work and discipline, it can be done. When you break it down to its simplest terms, there is an easy formula for saving more money as ther are only two ways to save more money: earn more or spend less. With earning more, you have to improve your skills and get a raise or get a higher paying job. Either that or work on a side hustle. With spending less, you have to…well…spend less.
Can it be fast? How fast you reach prosperity depends on how much you save and your lifestyle. Mr. Money Mustache and his family became financially free in 9 years. While it is not getting rich quick, this is pretty fast! Now MMM is a pretty extreme example and it may be more difficult to achieve for others. It seems that his blueprint involved living in a low cost-of-living area, have two relatively high income earners, and having the discipline to cut expenses and save a large amount of their income.
Now if you do not retire in 9 years, you are by no means a failure. If you are following the blueprint you are already ahead of the game and you will reach prosperity. Many Americans don’t even think they can even ever retire. Fast is a relative term. Where people generally retire at age 65, and you are able to do it at 55, 50 or even earlier, I think you’ve reached prosperity pretty fast.
Thanks to these carnivals for including me:
Yakezie Carnival
Carnival of Tortoise Banker
I agree. There are no get rich quick tactics and the first step to finding success is defining what it means to you. Becoming successful or rich does take a lot of hard work but that hard work can be fun and definitely is rewarding. Every single person has the ability to become successful they just have to make a plan and stick with it.
Alexa recently posted…Ditching the Day Job: Six Months to Go!
I think that’s a great mindset. Every single has that ability, you just have to follow the plan and stick to it. Too many people think that it is impossible and don’t even try.
I completely agree. Unless you get really lucky and money falls into your lap, it’s not going to be quick. I think the journey is more important, anyway. There’s a lot of lessons to be learned and a lot of trial and error involved. You can’t rush these things. I like the way you point to at least following a blueprint. Have tiny goals as to how to get where you want to be is great, and adjusting those goals every year once something changes (maybe a raise, a move, etc) is also a good thing to do.
I’ve been saving money and cutting expenses for a while now – it’s time for me to start earning more!
E.M. recently posted…July Goals Review & Goals for August
Ah yes, the journey is almost always more important. Good luck with getting the raise and in your quest to earn more money!
Other than winning the lottery or being born into a rich family, no =)
Holly@ClubThrifty recently posted…Overcoming Laziness: How I’m Cutting Costs in August
Maybe not getting rich overnight, but I think prosperity can be achieved in a shorter timeframe than most people think.
Is there a fast and easy way to prosperity? I sure hope so! Ha! Then again, there’s always luck! There’s a lot to be said about being at the right place, at the right time. Working hard, saving, earning more and investing is a great blueprint for financial prosperity. But is it quick? I don’t know, I’ll let you know when I get there 🙂
Anthony @ Thrifty Dad recently posted…Being frugal is about being resourceful
As they say, it’s always better to be lucky than good!
I agree with you that “prosperity can be achieved in a shorter timeframe than most people think”; I have a spreadsheet that I started in 2006 where I track our net worth on a quarterly basis. It’s absolutely astounding to see where we’ve come from and where we are now (5x our retirement savings and 3x our net worth), and that’s over a seven-year period that was almost entirely the Great Recession!
The simple answer to prosperity is to save as much money as you can each year. It might seem like a small amount on a monthly or yearly basis, but it sure adds up quickly to totals you previously couldn’t imagine!
Brad @ RichmondSavers.com recently posted…Quick Tips: 5th Night Free Using Starwood Preferred Guest Points
Wow congrats on your progress! Good for you for keeping a spreadsheet, I should do that too. You’re right that even a small amount accumulates over time.
It’s a paradox of personal finance: the process is always simple, but the execution is not. It’s like most of the things we ought to do (eat well, exercise, set goals and regularly work towards them, develop new skills, etc. etc.) There’s no mystical secret…just rare achievement.
Done by Forty recently posted…Should I Buy Investment Property Locally?
Couldn’t have said it better. No mystical secret to many of the goals we want to achieve…just have to have the discipline to do it.
Economic catastrophe: bring it. Here’s what I have to look fawrord to under the current System:1. 20 more years of 9-5. I mostly like job, but this collapse sounds like a great chance for a year off. We weren’t meant to spend 40 years hunched over a damn computer.2. That “savings” from the first 20 years? It was in mutual funds, now proven to be a farce.3. Still won’t be able to afford a nice house, only now I no longer want to be saddled with one. The housing porn in the Sunday supplements, magazines, and t.v.? Indeed, a fantasy world that does not exist.
I agree that working 40 years hunched over a computer is not something I want to do. What do you mean your savings in mutual funds have proven to be a farce?
My initial thought when I read your title was “NO” too 🙂 But again, you do have a point. Fast is a relative term and at least getting that financial independence as soon as possible (be it 9 years or 20) is faster than what most people. So yeah, save, invest, rinse & repeat should do it. If you can also add to that an increase to your monthly revenue, it’s even better!
C. the Romanian recently posted…Time to Work with a Five Year Plan!
Great! We’re on the same wavelength…glad you got what I meant!
Thanks Andrew for the mention. Yeah I agree there is no short cut. Slow and steady wins the race. Also one more thing choosing right path and being consistent is important. If you choose something where the earning potential is low then you may not get desired result despite your efforts .If you choose right path and have strong desire to achieve your dreams then you can win
Rita P @ Digital Spikes recently posted…Seven habits of highly debt free people
You’re welcome. Slow and steady wins the race…kids learned this with the tortoise and the hare and adults still try to emulate the hare!
Like you say, I think the time it takes mostly comes down to the things you value. The path itself is pretty simple (spend less than you earn), but it can be difficult for people to properly execute. I also don’t think that early retirement has to be the goal. Not everyone is going to view the quickest way to independence as their ideal lifestyle, so it’s important to first determine what’s truly important to you and then focus on the path to get there that makes you happiest.
Matt Becker recently posted…With Investing, the Grass is Rarely Greener on the Other Side
That’s a good point that not everyone will view that as their ideal lifestyle and that everyone has different goals. It does depend on what you value and then you’ll have to formulate the plan and blueprint to fit what you want to achieve.
My goal is to retire by the time I’m 40. Then maybe I’ll start a charity or something. Who knows what the future will bring?
Troy recently posted…The Future of Walmart’s Stock
Good luck with that! And starting a charity sounds like a very worthwhile endeavor.
I just read Rita’s article and now yours, and I must say I’m ready for a Super Saturday now! Over the past few years, we really got serious about money. We pulled our heads out of the sand and started paying off debt, increasing our contributions to retirement funds, and put ourselves on a much faster track to financial independence. While we know it will not happen overnight, we find it immensely fun to cut our spending, have more time together, and increase our savings, earning, and all around happiness! Thank you, Andrew!
Thanks Tammy! And glad to hear that you guys made changes to get on a faster track to financial independence!
It’s better think of getting rich as slow and easy. Many people don’t realize it, but becoming rich is possible. There are countless great blogs out there like yours that try to inform people about this.
Thanks Brett. I definitely agree that many people don’t realize that it’s possible to become rich…it might just take some time and dedication.
I guess it all comes down to what you actually consider fast! Some people think retiring at 65 is actually fast while others are looking to be millionaire at 25-30. Nothing is every had without someone doing the hard work. Even if the money is inherited someone put in the effort to make it. The faster you want to make it the great the risk evolved is usually what I hear. Working for 20 years would be considered less risk as opposed to say stocks and real estate full time. Though I would just prefer a mix.
Thomas | Your Daily Finance recently posted…Avoid These Common Cash Back Credit Card Mistakes
It’s true that faster usually involves more risk. However, in the case of Mr. Money Mustache, it seemed like the main ingredient was his savings rate with a high income and living in a low cost area. He didn’t necessarily take on a lot of risk in stocks, though he did invest in real estate. Absolutely agree that it does take hard work though.
I think it can be done reasonably quickly, it all depends on your mind set and work ethic I suppose. What always amazes me are the businessmen who seem to make it from penniless to multi millionaire within a lifetime. That really takes some doing.
Adam @ Money Bulldog recently posted…Common Investing Mistakes and How to Overcome Them
I love a rags to riches story. It definitely can be done if you have the proper mindset and worth ethic.
As others have said, I am not aware of many get rich quick schemes that actually work. I try to view the various things I do as planting seeds. They may seem painful right now, like dumping extra money to pay off the mortgage faster, but once complete, I will see a huge benefit in my finances down the road.
Greg@Thriftgenuity recently posted…Rental Property- Advertising DIY
That’s a great way of looking at it…and a great incentive to continue on your financial path by viewing it as planting seeds. It will be that much more gratifying to see the results of the seeds you’ve planted.
LOVE this, Andrew!!! And I would agree too, about retiring at 50 or 55 being great! Anything a person can do to work toward financial independence is a huge win. It may not be as quick as one likes, but they’ll be glad they did it once they’ve arrived.
Laurie @thefrugalfarmer recently posted…Paying off Debt: How to Re-Wire Your Financial Mindset
Thanks Laurie!
It depends how you define prosperity. Although I’m not financial independent I already feel quite prosperous. My house is nearly paid off, I don’t have any needs going unfulfilled, it’s a pretty good life! So from that respect I feel that my wife and I have already reached a state of prosperity and abundance.
GamingYourFinances recently posted…How To Pay Off The Mortgage Early?
Congrats to you! I mostly feel that way…but I’m missing the paid off house. That is a big chunk of my “prosperity” that is missing.
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Quick and easy prosperity sounds lovely doesn’t it? In some ways this comes back to the turtle and the hare debate. I’m definitely the turtle.
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