10 Ways To Get Rich on Such a Small Salary

Yeah right; getting rich on a small salary is not possible. Well, it is possible. You could always win the lottery by purchasing a lottery ticket with your small salary and then you’d technically get rich off your small salary. But that’s just not how the world works, is it? Nope; very few of us win the lottery – mostly because we don’t play and also because the chances are so slim. Most of us work our entire lives and we live a nice, comfortable lifestyle that certainly does afford us a good time and a lot of fun, but we don’t get rich. And it’s not because of the dollar amount of our salaries, either. It’s the fact that the vast majority of us have no idea how to actually get rich. We think that it’s something we get by getting a raise, but it’s something we actually have to do for ourselves. So with that said, here are a few good ways you can actually get rich on your small salary.

Save Money

It’s a simple concept, really, but it actually does work. Go ahead and save your money and you will get rich a lot faster. If you have money in the bank, it helps you amass wealth. You should save as much as you can by cutting out the things that mean the least to you. For example, do you really need that $5 latte every morning to make you happy or do you drink it only because you are too lazy to make your own coffee at home? Cut out the small stuff.

Invest

If you have money to invest, do it. Even if you don’t think you do, you do. If you can find just $300 a month to invest, you might be surprised just how much money you can earn over the course of your life. It’s a simple way to save money and amass money. When your money makes money, it’s a good sign that you’re doing everything right.

Live Within Your Means

Most people cannot do this. They find it difficult. If you spend less than you make, you will get rich much faster. You have to live within your means. This means forgoing fancy dinners you just can’t afford and making sure that you don’t do things that you cannot actually afford to do. Here’s a good rule of thumb; if you cannot pay cash, do not buy it.

Buy Less than You Can Afford

If you can afford a Mercedes-Benz, that’s nice. But that doesn’t mean that you have to buy it. Do you need a 5,000 square foot house for your family of two or would a house about half that size be a much smarter investment? You should not buy things simply because you can afford them. Spend wisely and always spend less than you can afford and you will be pleasantly surprised just what you can afford.

Don’t Spend it All

If you have money, don’t spend it. Just because you have it does not mean you have to spend it on things. You might think to yourself, “Wow, I have an additional $1000 in my fun account this week and I get paid again and get to replenish it tomorrow, I better spend that money really quickly,” when you’re not spending much. That’s wrong. Put that money away. Just because it’s there doesn’t mean it has to go toward things that are not useful or needed. Save it for a rainy day or something you really want, like a wealthy lifestyle and a healthy retirement package when you grow older.

Save all “Extra” Money

If you get money you were not expecting, like a small inheritance after the death of a great aunt, don’t spend it; save it. You don’t have to spend everything you get. You should do yourself a big favor and start saving your money for things that are truly important in life, like your future. You can get rich a lot faster on your small salary if you take the time to save anything you get that’s not part of your salary.

Make Wise Investments

Instead of investing in that business your friend wants to open, why not invest in a nice piece of real estate? The smarter your investments, the faster you will become wealthy. You can spend money, sure, but you can save money, too. You can make good investments that will grow over time and you can make sure that they do by investing only in wise things – like property. A Ferrari, on the other hand, is not the wisest of investments.

Cut Out the Extras

You don’t need extras. You do not need to pay for high-end coffee every morning. You do not need to pay for unlimited text messages when you only send 6 a month. You don’t need to do anything that’s costing you extra money for nothing. You cut out the extras and save or invest whatever it is you are saving and you will find that it is much easier to become rich.

Find Free Entertainment

It’s unnecessary to spend a ton of money to entertain yourself and your family. Why not save that money you might spend on a movie (well around $100 these days for a family to see a movie) and find free entertainment? At the very least, find entertainment that’s a lot less expensive. Check out sites like Groupon and Living Social to see what they have to offer for discounted prices on things normally a bit more expensive than you might like.

Get Rid of Debt

The most important way you can get rich on a small salary is by paying off your debts. You cannot get rich if you owe money to others, so make it your goal to pay off everything you own. Pay off your cars, your credit, your student loans, your home; pay it all off. You do not want to owe anything to anyone – ever.

Photo by Christopher Furlong/Getty Images