Use assets not debt

 Warren Buffet once said:

“Successful investing takes time, discipline, and patience. No matter how great the talent or effort, some things just take time: You can't" produce a baby in one month by getting nine women pregnant.”

Pretty crazy for being an old guy but with that said investing takes time. Accumulate assets which you use to buy stuff for, be that more assets or just consumption. So before taking on debts, make sure you have your assets figured out, generating income for you. 

Pay the price

While on this journey of getting rich you have to find the right companies. The right companies whom will share their profit with their shareholders. The best thing is if they do this every year, for a long period of time, good profitable companies. 

The problem is, you are not the only one looking. However from time to time you can find these companies been valued lower by the investor then it’s historical average. There are many ways to determine the value of a stock. 

One of the easiest (and not always accurate) thing to do is look at how much each share trades for and divide it by the companies earnings per share.

Example: let’s say Company A consists of a 1000 shares. The trading price (P) per share is 100$ and the company earns (E) 10$ per share. This gives a P/E ratio of 100/10=10. I won’t go further into this you can read a lot about it online. 

So you have to find good companies to buy. Not the up and coming ones that don’t make profit, but the real mature grinders that earns hard cash month after month. 

Warren Buffet said it best: 

“It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price”

The money machine

 So what else prints money except the federal reserve? Well some stocks do. They pay a dividend. What is a stock? Google or AI is your friend for that question but in short it is a share in a company. 

When that company makes a profit it can decide to share it with its shareholders by paying a dividend. By reinvesting this dividend you can buy even more shares. And hopefully the company is successful enough so that it raises its dividend which allows you to buy even more stocks - compounding is born.

“Do you know the only thing that gives me pleasure? It is to see my dividends coming in.” - John D. Rockefeller

How to get rich… but perhaps not so quick

Want to get rich? Look no further. This method helped me to become financially independent at an early age.

We all dream of that big goal. Getting rich, independent, freedom and a lot of cash and there are certain ways of achieving this goal. But one that works for many is actually letting others get rich and follow along on their ride and success.

I am talking about investing. Earn money while you are sleeping. Get familiar with the phrase “compounding” which Benjamin Franklin explained the best, according to me.

“Money makes money. And the money that money makes, makes money”

Pure brilliancy. Follow along and learn how to get started!