Module to become rich, richer and richest

By Arun Dahal Khatri

“ Money is a tool, not the goal, freedom is the goal”
One of the most interesting questions in today's world is how to become rich? Everyone wants to become rich but no one wants to pursue the road map of riches. Countless things are important to becoming rich and pursuing the road of riches. Financial Discipline is important to become rich. Being rich is not an outcome of having huge money it is a quality to realize financial freedom where one has the sources to fulfill the desired dreams. Today we will take the most important habits of riches and thoroughly understand these patterns.

These are the significantly important practice to becoming rich 

1- Habit of investing: One of the common habits of rich people is the habit of investing. Most wealthy people never forget to invest whether the condition of income is good or bad. They already fixed the investment portion and regularly manage the funds. Investment is one of the most important weapons which can support the overall financial position of the people. Therefore, wealthy people never missed the investment opportunity. Rather than buying the liabilities and fulfilling the different wants they have habits to buy the profitable assets. Rich people never run to pursue money instead they made a strong foundation and make the money run for them. Anyone who wants to become rich should follow the principle of investment. To become rich we don't need a huge amount of money, instead, we need a designed road map. Actually, by setting all the required goals within a specific timeframe we need to give the consistency of investment. Today I have taken a new investment module to become rich in a specific time frame.

20-year plan, Monthly $200 Investment module 
Initial age:20 
Monthly Investment:$200
Average yearly returns:10%
First-year investment:$200*12=$2400
Total worth of first year investment including returns:($2400*10/100) +$2400 = $2640

But this investment module is slightly different from others. The investor needs to increase his monthly investment by 10 percent after a year in a continuous manner.

Initial Investment of the second year :($200*10/100)+$200 =$220
Average yearly returns:10%
Second-year total investment:$220*12=$2640
The total worth of investment including returns :($2640+$2640)*10/100 =$5808

The initial investment of the third year :(220*10/100) +$220=242
Average yearly returns:10%
Third-year total investment:$242*12=$2904
Total worth of investment including returns:($5808+$2904)*10/100 +$8712 =$9583.2
Within 20 years investors need to be consistent and always ready to follow financial discipline. This rule helps everyone to become rich with a small consistent effort.

Things to remember:
1- You can start your initial investment at any time, anywhere there is no particular age and income.
2-You can make a retirement plan or pension plan through these investment rules. In addition, you can also increase the term from 20 years to 25 or more.
3-$200 is just an example. Therefore, you can start as per the flexibility of your income but regularly investing 10% of your income is excellent.

2-Control the unusual expenditures and liabilities: Most successful rich people never give priority to unusual expenditures. They give full priority to the need but are slightly strict when it comes to desires and wants. Controlling expenditures is one of the greatest art for being rich because it helps to reduce the cost of living and increase the chance of saving and investment. Including, buying the liabilities is also one of the obstacles to being rich. The wealthy person never prefers to use debt to buy liabilities because such buying yearly takes the cost in the name of depreciation, maintenance, insurance, and other headings. Therefore, if anyone wants to become rich then it is important to take the decision that he never compromises to make the restricted decision while buying the liabilities.
The poor decision-making module:
Buying Car: 
Spent $70000
Depreciation of 15% a year
Year 1    $59500
Year 2    $50575
Year 3    $42988.75
Year 4    $36540.45
Year 5    $31059.38

Instead of giving priority to buying a car most successful people buy fundamentally strong stocks. It doesn't mean that buying cars is not important but it is important to understand the financial situation. If you require a car and you can bear the cost then it's okay to buy but by taking debt buying the car is a bad financial decision. It does not only cut the value as the depreciation but also adds the costs like repair and maintenance, insurance, vehicle taxation, and other miscellaneous tax. Therefore, before being financially secure buying the liabilities like a car is taking a huge financial risk.

These are the financial decision mostly made by the wealthy person

Rich module
Buying cars company stocks
Investment:$70000
Yearly returns:10%

 year 1      $77000
 Year 2     $84700
 Year 3     $93170
 Year 4     $102487
 Year 5    $112735.7

3-Rich Invest in knowledge and building skills: Rich becomes richer and richer become great richer because of the investment made in themself. The investment made in knowledge pays the highest dividend in the world. Most successful wealthy builders have the habit of investing money to gain knowledge. They never hesitate to invest in building new skills. Instead of using the money to drink Starbucks, they buy the success story of Starbucks. Instead of spending huge money on regularly changing Iphones, they have the habits to buy The Biography of Steve Jobs. Rich have these valuable traits which made them richer and adds some extra income. They have a long-term vision instead of expecting the short-term result. Financial literacy plays an important role to gain extra income and add some extra money to the bank account. Therefore, they invest to gain financial knowledge as far as possible and habits to learn new skills about finance. They have the considerable style to make the budget system. Instead of spending huge money, they made a budgeting system to control the overall income.

4-Habits of taking an insurance policy: Risk is one of the immutable and unpredictable factors which can come anytime anywhere. We cannot eradicate risks from our regular life but we can take some steps to overcome them financially. Taking an insurance policy is one of the most important steps to overcoming the risks financially. It helps us to reduce the cost of bearing the accident. Instead of using our principal amount to cover the accident, a small portion of insurance helps to cover the full costs. Therefore, taking health insurance, property insurance, and vehicle insurance is important to omit the unusual risks from our daily life. Rich people have the great idea to play safe games. Therefore, they are already prepared to overcome the risks through insurance.