You Don’t Need To Be A Genius To Be Rich (8 Easy Wins)

The idea that you need to be a genius to be rich is an overused trope. Many people assume that wealthy people have high IQs or elite degrees or extraordinary talent in some domain of life, but that’s not always the case. In fact, the evidence shows that IQ only correlates weakly with overall net worth. What seems to matter more is a person’s personality traits and their ability to act conscientiously in the world while persisting.

What are some ways that you can build real wealth over time, even if you aren’t a genius? 

Consistently live below your means

For most people, consistently living below your means is the most powerful way to become wealthy. While you’ll need to do it for quite a long time, it will eventually compound and you’ll get the returns that you want. Don’t engage in lifestyle inflation. Even if your wages go up, continue to live as simply as possible. The excess income can be used to buy assets that generate more money in the future. Don’t have money freeing up your next steps. You’ll never get ahead. In order to become wealthy you need to have more money to make more money. 

Check your expenses

Related to this last point, you’ll want to check all of your expenses. Where possible, pay the absolute minimum for all of your bills and outgoings. 

For example, use price comparison websites to check the price of your car insurance, home insurance, utility bills, and mortgage payments. If you see a cheaper option, then go for it. Most people find that they can save between 10 and 40% if they do a proper audit of all of their essential outgoing 

If you have a business or you’re self-employed, also think about whether you can minimise your taxes. Talk to your accountant about the strategies that you can use. 

Invest early on and be boring

When it comes to investing, you want to invest early on and be as boring as possible. Most people simply buy a broad market ETF, like one that tracks the S&P 500. This way you don’t need to pick winners or losers. You can simply buy the whole market and then gain when it goes up over time.

If you think that you might be on to a winner, trade boringly. Don’t buy anything that seems too complicated. 

Eliminate your bad debt

Becoming rich isn’t about eliminating all debt, but it does make sense to eliminate your bad debt. Too many people get bogged down with credit card bills and other debts that they can’t afford to pay. Eliminating these can immediately free up additional income and prevent your bank account from being drained. 

Good debts, however, like a mortgage on a home that’s likely to rise in value in the future, can be beneficial for your net worth. It enables you to get leverage over assets and make more money in the long term, especially if you build equity and sell. 

Look for ways to increase your income

While it might sound obvious, getting rich often requires looking for ways to increase your income. It’s very rare that somebody becomes truly wealthy if they don’t have a high income to begin with. That’s because it takes so long to build savings when income levels are moderate.

Start by looking for raises at your current job. If that’s not an option for you, try switching jobs every couple of years. Usually, new companies will be willing to pay you 10 to 20% more than what you were getting before. You don’t need to start a revolutionary business. Often, all that’s required is upskilling and finding new work. If you do have a good idea for a business, though, then pursue it. Many people are surprised to discover how much money they can make when they get their businesses right. 

Build a second income stream

The next step is to build a second income stream. Most people who get rich don’t stick to a single job for 40 years. That’s because the job market is uncertain, and it’s never clear whether you’re going to be made redundant from one year to the next. You might think that the risk is low, but often it’s higher than you imagine.

If you have a second income stream, though, it allows you to take on a new job and develop new skills. You may also find that the income from this additional stream is higher than what you earn working a regular 9-5. You may be able to take this side hustle and turn it into your main business should something go wrong with your conventional job. 

Surround yourself with people who can positively influence you

Another thing you want to do when becoming rich is to surround yourself with people who can influence you positively. Find individuals who understand the various paths to wealth, including starting businesses, investing, and saving.

If you don’t have anybody in your immediate circle, then read books on the topic. Find thought leaders in the space who have proven that is possible by doing it themselves. If you need to move away to another city to get away from bad influences, then do so. Hanging around the wrong people can really drag you down and prevent you from making the progress in life you know you need. 

Develop grit and consistency

Finally, it’s critical to develop grit and consistency while trying to build wealth. Things often take much longer than you imagine and are harder than you think. This is true of almost every business venture. Often people grind for two to three years before seeing results.

The good news, though, is that when the payoff comes, it usually comes big. You often make more money in a single year than you would otherwise make across your entire lifetime. Ultimately, it’s traits like conscientiousness that predict financial success. Being smart is great, but smart people are often just as impulsive as those with lower IQs. 

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Becky

Meet the award-nominated UK lifestyle blogger behind Spirited Puddle Jumper – a mum of three living in South East London! Becky shares the real ups and downs of family life, parenting tips, and lifestyle inspiration, proving that being a mum doesn’t mean you stop being fun or having other interests! Follow along for honest insights into UK family life and opinions on a whole range of topics, from travel and food, to beauty reviews, home and DIY, business and health and wellness.