How To Become Rich With A Normal Job: A Simple (But Complete) Guide

A celebrity salary is no guarantee of financial security. When you spend everything you earn, no matter how much that is, there is nothing left. There is good news, though: for every profligate who fritters away a fortune, there is an average wage earner who becomes wealthy by living frugally, saving aggressively, investing prudently, and practicing self-control with their money.

Real wealth is within reach with the income that you are drawing in right now, provided that you use it — and don't use it — properly. A six- or seven-figure salary doesn't always equate to a six- or seven-figure net worth.

Wealth Creation Begins with a Budget, No Matter Your Salary

Check to check living is a reality for everybody, regardless of annual income.

Start living lavishly by establishing a household budget as a cornerstone of personal financial responsibility.

"A budget is a blueprint for spending within established income limits," explains Brad Biren, tax and elder law attorney in Des Moines, Iowa, and founder of IQMOP.com.

Several apps exist to help you manage your finances and stick to your budget.

YNAB Coins (You Need A Budget)

Goodbudget PocketGuard

Put Honeydue Away

Raise your income, not your spending.

Although you probably won't receive a bonus on the level of an investment banker, you should still be able to count on pay increases from time to time. When one's financial situation improves, the temptation to splurge increases, as one can finally afford to buy the goods that were before beyond of reach.

There is no shortage of broke professional athletes who are examples of what may happen if your lifestyle keeps up with your money. According to Brian Davis, real estate investor and creator of SparkRental, "when people make more money, they find ways to spend it." Luxury housing, luxury transportation, luxury dining, and luxury vacationing all on the rise. Known as "lifestyle creep," this trend has been studied extensively.

Invest in Your Rich Future Self by Spending All Your Extra Money

If you can refrain from spending money on ever-increasing luxuries, you will have more of a financial cushion for the future.

One way to prevent your living expenses from outpacing your savings is to automatically invest more of your money as it becomes available, as recommended by Smart Saving Advice's Matthew Robbs. "So if you got a 5% rise, take some of it and put it towards your savings/retirement goals; I would take half of the raise myself."

Robbs advised foregoing the short-term satisfaction of whatever you would have spent the money on today in favor of a good level of living in retirement.

Focus on Financial Freedom, Not Rapid Wealth Creation

It's easy for calm, steady, long-term investors to lose focus when bitcoin billionaires make headlines and real estate gurus persuade everyone with a television that their riches is just one house flip away. It's a well-known adage that slow and steady wins the race, and this is especially true when it comes to investing.

To make quick money, "it can be tempting to participate in high-risk projects or to try to buy and sell stocks or property," said Michael Miller, CEO of VPN Online. Regrettably, "the returns on such investments are usually low."

Many financial experts, including Warren Buffett, agree that the easiest method to grow a little amount of money into a substantial fortune is to invest in a low-cost index fund exchange-traded fund (ETF) and add to it consistently over time.

Put together a three-to-six month emergency fund.

Building your wealth on sand rather than rock is a surefire way to see it crumble. If you're planning to invest your money in assets with double-digit growth potential, you need build up some kind of safety net beforehand.

Maintaining a three- to six-month emergency fund is crucial in the event of a job loss or other significant financial setback, such as an automobile accident or unforeseen medical expenses.

In the event of an unexpected expense, it is imperative that you draw from your emergency fund rather than your investments, which are subject to greater market fluctuations. Moreover, you risk substantial financial loss if you access investment funds for unexpected expenses at the incorrect moment.

To add insult to injury, you should make it a point to never make it a practice to withdraw funds from your investments. For the simple reason that it will be very difficult to refrain from doing so once you've started. Then you'll develop a pattern of decreasing rather than increasing your money.

Get started as soon as you can on putting together an emergency fund. Proceed to Stage Two.

Examine How You Feel About Money.

No matter what your income level is, learning to view money as an instrument for creating prosperity and security is the best thing you can do for yourself and your loved ones.

CreditDonkey research analyst Amanda Sullivan said, "For the typical person, there is no hard and fast guideline to help you create healthy money habits." "A good rule of thumb is to differentiate between wants and requirements."

You need not live in abject poverty, but by treating all of your wants as if they were truly luxurious, you will significantly reduce your spending on things you could easily do without.

Put your money to work for you by investing it aggressively yet prudently.

Investing your money aggressively but properly is the quickest way to grow rich while maintaining a regular job. You can have whatever you want in life if you've established a comfortable emergency fund, eliminated all of your high-interest debt, and reined in your wasteful spending habits.

At this stage, you can expect to see a considerable increase in the rate at which your wealth grows. If you invest your money wisely, every dollar you put in will work tirelessly to help you make more money.

Every dollar you put in is like buying a tiny money miner, and that's how you should look at it. These small green money miners will dutifully work for you around the clock, even while you sleep, bringing in more and more cash. Plus, the term "compound interest" is used to describe earnings on earnings, or the multiplication of one's initial investment.

Albert Einstein once said, "Compound interest is the eighth wonder of the world," highlighting the significance of the idea. That which is known is rewarded; ignorance is penalized.

Thus, to maximize the impact of compound interest, it's best to invest as much as possible as frequently as possible.

"When you give in to the lifestyle creep, your hard-earned money can quickly evaporate," Sullivan warned. When it comes to your financial outlook, it's important to plan ahead. Having a nest egg, paying off debt, and preparing for retirement should be at the top of your financial to-do list.