How to become rich in the UK
It’s simple math. Becoming financially rich is having much more money than you need.
Almost anyone with a steady income can become rich if they save and start to invest a percentage of their money over many years. The more you save and invest, the richer you will become.
Step 1: Plan
Do you want to know how to become rich by 30? Or how to become rich in 10 years? Or how to become a millionaire? It’s all possible.
But what is the goal of becoming rich? Is it to afford a one-time purchase like a car or a house, or sending a child to private school? That’s a different goal than retiring early and travelling the world in luxury.
Whatever your get-rich-goal, write it down. Then work backwards to see how much money you will need and how much time you have to get there. Set short term and longer term goals that will set you on the right path.
You can become rich from nothing, but becoming a rich overnight is unlikely, as is acquiring £100,000 in a week. So set realistic expectations for yourself, but don’t be afraid to set a challenge.
Becoming rich is not necessarily easy, but if you only set big goals for yourself you are more likely to put your energy into reaching them. Choose a goal that motivates you, but not so lofty that it overwhelms or discourages you. If you need help, talk to a certified financial planner for professional guidance.
Step 2: Make money
If you want to become rich fast, spend less, save more and invest the difference.
If you’re starting from a place of financial constraint, you’ll want to start saving your money right and paying down debt. You’ll need that savings for investments. And if you’re starting from a place of financial comfort, you can still benefit from having more to invest.
As a rule of thumb, try saving at least 10% of what you earn. The more you save, the better. To reduce temptation to spend your savings, it helps to automate transfers directly from your account into your savings and investments.
If you don’t know where your money is going, use Money Dashboard to track your income and expenses and see where you can cut back, sell something, or downsize. Create a budget and monitor your cash flow with an eagle eye.
Make extra cash
There’s always money to be made. So aim to earn more money than you need and invest the difference.
To get started, take stock of what you can rent, such as a room in your home or an extra parking space in your driveway. Sell items you don’t use or need.
Find part-time jobs for a nice boost to your account. Look into delivery services (Amazon, Uber Eats, Deliveroo), teach part time if you can, maybe drive an Uber in your spare time. Seasonal side-hustles like Christmas markets can also boost your savings.
If you have a creative hobby, see if you can sell work or drum up commissions at markets or on Etsy.
Get a great job
No matter what job or line of work you’re in, you can become rich. Of course, it helps to be in a high-paying field and on a growing career path. As income rises, so should your savings and investments.
Depending on where you are in your career, it might not be too late to shift into a STEM job (Science, Technology, Engineering, and Math). Demand for STEM workers is rising, as are the incomes that come with them.
Otherwise, look for career building within your existing line of work. Large companies tend to offer most room for advancement. Seek advice and training that will set you up for a promotion or new opportunity with better pay.