Saving is a critical component of growing your wealth.
That being said, you can’t neglect earning, which is what the wealthiest, most successful people choose to focus on.
“The masses are so focused on clipping coupons and living frugally they miss major opportunities,” self-made millionaire Steve Siebold writes. “The wealthy also know saving is important. But they know earning money is even more important.”
Here, we’ve rounded up 11 strategies to increase your earnings, from the self-made millionaires who have already done it.
In author Thomas C. Corley's five-year study of self-made millionaires he found that many of them develop multiple streams of income: 65% had three streams, 45% had four streams, and 29% had five or more streams.
These additional streams include real-estate rentals, stock market investments, and part-ownership in a side business.
'Three streams of income seems to be the magic number for the self-made millionaires in my Rich Habits study, but the more income streams you can create in life, the more secure will your financial house be,' he writes.
'The only reason to save money is to invest it,' writes Grant Cardone on Entrepreneur, who went from broke and in debt at 21 to self-made millionaire by 30. 'Put your saved money into secured, sacred (untouchable) accounts. Never use these accounts for anything, not even an emergency.'
While always subject to a degree of risk, investing is one of the most effective ways to earn more money. As Ramit Sethi writes in his bestseller, 'I Will Teach You to Be Rich,' 'on average, millionaires invest 20% of their household income each year. Their wealth isn't measured by the amount they make each year, but by how they have saved and invested over time.'
The wealthiest people focus on coming up with innovative ideas first -- then, they aren't afraid to fund their future from other people's pockets, Siebold writes in his book, 'How Rich People Think.' 'The wealthy know money is always available because rich people are always looking for great investments and superior performers to make those investments profitable.'
You don't have to have money to make money, he stresses: 'The truth is you have to have great ideas that solve problems to make money. ... Creative ideas are the scarce resource, but most people are so focused on where the money is coming from, that they ignore their ideas, yet the ideas are the only thing that will actually attract the money in the first place!'
'Most people think the rich are obsessed with money,' Siebold writes. 'While that might be true sometimes, most of the self-made wealthy are obsessed with success. Money is nothing more than a gauge the wealthy use to see if they have achieved their latest target.'
The richest people see business and life as a game -- and 'it's a game they love to win,' he explains. Think about what you want and exactly how you're going to get it, advises Siebold. It will take a certain level of discipline to 'win.'
'This will move you from problem thinking into solution thinking,' explains self-made millionaire T. Harv Eker.
After all, the quickest way to make money is to solve a problem, Siebold explains:
The larger the problem the more money you make. What are the biggest problems in your industry or around your area of expertise? Can you find a way to solve one of these problems, or at least simplify it? Creative thinking that solves problems is the highest paid skill in the world. The more problems you solve, the richer you become.
If you want to make more money, you have to have a clear goal and then a specific plan for how to achieve that goal. Money won't just appear -- you have to work at it.
Rich people choose to commit to attaining wealth. It takes focus, courage, knowledge, and a lot of effort, Eker emphasises, and it's possible if you have precise goals and a clear vision: 'The number one reason most people don't get what they want is that they don't know what they want. Rich people are totally clear that they want wealth.'
Andrew Carnegie, who started with nothing before becoming the richest man in the US, credits all of his riches to one principle: the Master Mind.
The idea is to surround yourself with talented people who share your vision, because the alignment of several smart and creative minds is exponentially more powerful than just one.
Plus, we become like the people we associate with, which is why the rich tend to associate with others who are rich.
'In most cases, your net worth mirrors the level of your closest friends,' explains Siebold. 'Exposure to people who are more successful than you are has the potential to expand your thinking and catapult your income. The reality is, millionaires think differently from the middle class about money, and there's much to be gained by being in their presence.'
To a degree, the rich are selfish and self-absorbed -- and they're OK with it, Siebold writes in 'How Rich People Think':
If you're not taking care of you, you're not in a position to help anyone else. You can't give what you don't have. ... The world-class philosophy is to get rich, get what you want, and help others in any way you wish.
Any self-made millionaire will tell you there is a period of time in the beginning of the wealth building process where you must focus on yourself and your business in order to succeed at an uncommon level.
Change your mindset about money
'Getting rich begins with the way you think and what you believe about making money,' Siebold explains.
At the end of the day, 'The secret has always been the same: thinking,' he emphasises. While the masses believe becoming wealthy is out of their control, rich people know that making money is really an inside job.'
'To the average person, it looks like the rich are working all the time,' Siebold says. 'But one of the smartest strategies of the world class is doing what they love and finding a way to get paid for it.'
Instead of setting out to find work with the most profit potential, focus on work that has the most fulfillment potential. Once you find it, invest so much heart and soul into your work that you become one of the most competent people in your field. You'll be rewarded with uncommon wealth.