Can you get rich without being rich
Get rich: 6 legal steps to becoming a millionaire
Actually, the punch line in our articles is always: Money alone does not make you happy and wealth should not be your highest goal in life or when choosing a career. But since money still doesn't stink, today we have the legal tips for you on how you can get really rich without winning the lottery.
1. There are many ways to get rich - but only one that is realistic
2. Get rich through "normal", honest work?
3. Old-age poverty is becoming more and more of a problem
4. Step 1: work, work, and more work
5. Step 2: Take advantage of tax advantages
6. Step 3: negotiate benefits
7. Step 4: Private retirement provision
8. Step 5: Shares "Yes" - Risk "No"
Step 6: You are never too young to save
10. Conclusion: Dreaming is allowed, but please with reason
There are many ways to get rich - but only one that is realistic
Unless you are a Hollywood star, soccer player or the next Steve Jobs entrepreneur, you can only dream of many millions or even the first billion in your account. Dreams that almost a quarter of Germans indulge in playing the lottery every month. According to the German Lotto and Totoblock DLTB, just 152 players became millionaires in 2018. When asked what options there are to become a millionaire, the majority of people would answer with the following or similar sentences:
- Become a famous actor or singer.
- Start a successful company.
- Win in a game of chance.
- Rob a bank.
- Inherit or marry rich.
- Become an influencer.
- and much more m.
But isn't there a more realistic (and legal) way to get rich?
Get rich through "normal", honest work?
Well, don't you miss the normal, honest work among these answers? Take the test once and ask your friends, colleagues or acquaintances what ideas they have for getting rich. You will see: Hardly anyone or nobody will answer with “work”. It seems popular belief that you do from honest work to make ends meet, but nobody really rich with it these days becomes more. If anything, many German employees have the illusion that they can only get really rich as a solo preneur or entrepreneur. For this leap, however, there is either a lack of a brilliant business idea or simply the courage. However, this idea contains two serious mistakes:
- Wealth doesn't always have to happen quickly. Also with patience you will reach your goal. However, the faster you want to get rich, the greater your willingness to take risks and the more you can lose again.
- You can blow even the largest fortune on the head in a very short time - as happened with a large number of lottery millionaires who are now poorer than before their long-dreamed-of wealth. So you will only ever get rich when your income exceeds your expenses.
We would therefore like to give you tips on how you can get rich in the long term and with low risk - if you prefer daring actions, debt towers for a questionable business idea or the unrealistic dream of "Millionaires overnight through the Internet" is, therefore rather read on dodgy websites without an imprint on the verge of legality. But then please don't be surprised if a short high is followed by a low fall.
Old-age poverty is becoming more and more of a problem
The reason why we are dealing with bare figures today is the increasing problem of old-age poverty in Germany. Fewer and fewer people manage to create enough reserves during their professional life to make ends meet in old age, let alone lead a “good life” in prosperity. For many Germans, retirement also means social decline. And that, although you may have been looking forward to the well-deserved years on “long-term vacation”, finally want to go on that dream trip around the world or simply want to enjoy time with children and grandchildren. And no, neither lazy people nor the less qualified are affected by old-age poverty. On the contrary:
Especially people who worked hard all their lives have, for example in the social area, still threatens life at the subsistence level in old age. In particular, single parents or mothers who have not worked at all or only part-time for a long time in the interests of bringing up children or caring for relatives are often unable to build up sufficient reserves. In addition, women still earn less than men in the same job, which also means a lower pension.
That is certainly not fair, but that is another topic. Today the question will be: How can you not only prevent poverty in old age, but also prevent it? amass the greatest possible fortune - maybe even a whole million?
Step 1: work, work, and more work
Nobody said that getting rich is easy and if you prefer to lie lazily on the sofa than work, you should perhaps use the strategy of “getting married richly” after all. For those of you who were not born into a rich family or were blessed with a lottery win, the key to wealth lies in unspectacular work. Let's assume that the average German works around 40 years in their lifetime. This “average German” earns 32,643 euros gross per year.
In his professional life he earns well over a million, to be precise even 1,305,720 euros. Of course, taxes, social security contributions and cost of living are now removed from this. Nevertheless, she already recognizes the most important one Principle of wealth: The less you spend from this gross income, the greater your remaining wealth. So if, in a purely utopian way, you would only need 305,720 euros or less for taxes and living expenses in these 40 years, you would be a millionaire when you retire. And all that without daydreaming and wasted money on gambling, but only through honest work and the skillful use of your hard-earned wealth. So the question is not necessarily how you can get as much money as possible, but how you can reduce your expenses?
Step 2: take advantage of tax benefits
With a tax rate of up to 45 percent, wage or income tax is one of the largest taxes in most households. Of course, it's tempting to cheat a little. But if you have a lot, you can give away a lot without having to gnaw on your hunger afterwards. This is how the social system works in Germany and with the nationwide average income of 32,643 euros you will be far from this maximum tax rate anyway. Still, you should of course have as many save taxes as possible. There are also numerous legal ways to take advantage of tax advantages, thereby reducing your expenses and increasing your assets. These include, for example:
- Child allowances
- Craftsman costs
- Health expenditure
- Advertising expenses
- private provision
- and much more m.
Step 3: negotiate benefits
There are also numerous employer benefits that you can claim tax-free or tax-favored. So before you look forward to the next wage increase, do the math to see whether another benefit from your employer would not make more sense. The increase in your income also leads to an increase in your tax rate and social security contributions and ultimately there is hardly anything left of the few hundred euros more per month. So how about using instead tax-free petrol vouchers, a company car or capital-building benefits?
Such capital-building benefits can be, for example, an employer contribution to your home loan and savings contract, a company pension or a combined Riester subsidy. The employer is not legally obliged to do this, but in many companies the capital-forming benefits are part of daily practice, which is why you should definitely seek a one-on-one interview with your supervisor or HR manager.
Step 4: private retirement provision
Speaking of Riester pensions, company pensions and building society contracts: No matter what type of pension you choose, make provisions privately and do it now! Statutory pensions are already barely enough to survive and experts agree that people without private pension provision are guaranteed to end up in old-age poverty in ten, 20 or even 30 years.
Now you can of course, on the one hand, simply accumulate your assets in a bank account and draw on them in old age. At Interest rates of plus-minus zero percent You are giving away hard cash and the aforementioned tax advantages. Many experts fear that negative interest rates are already being charged on German business accounts and your private checking accounts will not be immune to this in the near future.
It is therefore essential that you invest your money in a private pension plan. Whether you opt for the good old “concrete gold”, use your home loan and savings contract only to save, choose a Riester pension or the good old life insurance - that is ultimately your individual decision. A combination of different investment options usually makes the most sense.
Step 5: Shares "Yes" - Risk "No"
Shares are another form of investment. For many of you, your hair will now stand on end. Hadn't we promised a low-risk path to wealth? Indeed they are Shares better than their reputation.
While risky speculators regularly blow their entire fortune on their head in various bubbles, there is actually a low-risk and highly recommended way of investing your money in stocks. This can be, for example, in combination with a private pension (so-called pension fund), or in the classic way by buying and selling securities on the stock exchange.
However, many people shy away from the financial markets because of their complexity. You can therefore also seek support from a capable and trustworthy stock broker. The best way to do this is to take up personal recommendations from your social circle back and watch out for dubious sellers on the Internet.
Regardless of whether you are looking for an investment strategy yourself or you are looking for professional advice on this: Never bet on just one card. Shares as a form of investment are only low-risk if you diversify your assets widely, plan for the long term and, above all, rely on large, well-established companies. The shares are certainly not suitable as an investment strategy for all your assets, but they represent a useful addition, for example in addition to real estate, Riester and company pension.
Step 6: You're Never Too Young To Save
At 18, 20 or 25, time seems to be slowly passing by and old age, retirement or even the need for care are still a long way off. But then you are finished with your studies, buy your first property, give birth to your first child - suddenly 20 years seem to have passed with a snap of your fingers and you have not yet made provisions for old age. Even if it is considered “stuffy” in young people to think about issues such as private old-age provision or disability insurance, you should start saving as early as possible. That also means:
The earlier you start working, the more you can of course earn in the course of your working life. If you start your professional life at the age of 20 instead of 25, you will earn 163,215 euros more per year with the average income of 32,643 euros mentioned.
In times when many companies no longer measure salaries by the level of education of young professionals, it can therefore make perfect sense to use the To choose training instead of studies or "only" the bachelor's degree instead of the master's degree. Depending on the industry, you will never make up for the time lost from a financial point of view. Anyone who, from a young age, uses reason and perhaps even pulls out the calculator when choosing a career will tend to be richer in later life than their unreasonable peers.
Conclusion: Dreaming is allowed, but please be reasonable
As you can see, getting (and staying) rich is ultimately not that difficult once you get away from yours Say goodbye to unrealistic dreams and instead approach it with common sense and financial sense. Ultimately, one is most likely to get rich through hard work, a good job, a frugal lifestyle and sensible investments. Nevertheless, you should not lose sight of your dreams and do not choose your profession based on purely financial aspects. Try yours instead To reconcile desires with reason and to make it a reality on a solid basis. Only in this way can you live both financially and happily.
Unfortunately, many people only understand that these two aspects do not go hand in hand when it is too late. “Wealth” doesn't always have to do with money or material things. We would therefore like to conclude this article with what is probably the most important tip on true wealth - the moving last words of the aforementioned Apple billionaire Steve Jobs:
“In the eyes of the people, my entire life is an embodiment of success. However, apart from my work, I have little joy in my life. Ultimately, my wealth is only a fact of the life to which I am used. In that moment, as I lie in a sick bed and look back on my whole life, I understand that all the recognition and wealth that I was so proud of have diminished before the face of death to come. In the dark, when I watch the green lights on the life support machines and listen to the mechanical hum of these machines, I feel the breath of death come closer and closer to me. Now I know that we have to ask ourselves completely different questions in life that have nothing in common with wealth [...] I cannot take away the wealth that I have accumulated in the course of my life. What I can take with me now are memories that are based on love and were created with love. That is the true wealth [...] Your wealth - that is the love for your family, that is the love for your wife and your husband, that is the love for your neighbors. Take care of yourself and take care of the others. "
Photo credit: Roman Samborskyi / Shutterstock.com
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