To Become Rich, You Only Need To Do Three Things

Updated: October 24, 2020

I’ve been writing in this blog for almost six years now. And if I were to summarize all the articles here, then I’d only need three sentences to do so.

Personal finance and the journey towards financial freedom is not a complicated undertaking. It’s a straightforward, three-step process, that everyone can do with enough determination and discipline.

And thus presenting, the three things that you only need to do if you want to become rich and financially free.

1. Spend less than what you earn

You can achieve this by paying yourself first, living a frugal life, and creating multiple sources of income.

2. Protect yourself and your assets

You can achieve this by saving up for an emergency fund, getting life and health insurance for yourself, and non-life insurance for your assets.

3. Grow your wealth by investing and creating passive income

You can achieve this by building an investment portfolio, acquiring income-generating assets, and starting a business.

And that’s it! Simple enough, right? But I know these three things are not easy, and there’s no quick way to accomplish them.

That’s why you need to continuously learn and increase your knowledge about personal finance.

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7 comments

  1. Very timely. I have this tendency to spend whenever I receive my salary. My excuse is I deserve something nice since I worked hard. But at the end of the day, I always asked myself where did the money go?
    Thanks Fitz for the reminder. Simple but takes discipline and right mindset to do these 3 steps.

  2. I consider myself being fortunate to have subscribed to your blog. I am always amazed on how you make it easy to understand the basics of investing. I have always dreamed of living with my own terms and reading your blogs is my first step to living my dreams. More power!

  3. your blog is very helpful to all especially to filipinos who need to be financially literate. Before I read your blog, I know that saving is important so I save. However when I have encountered your blog, I learned about investing so I started investing. For this blog, I want to know the assets needs to be insured and example of this insurance.

  4. Thanks to this blog it help me stay at the right path…waiting for the next blog.More people you can help stay healthy.

  5. I love reading all your blogs! I hope one day I can teach others about investing. Thank you and more power!

  6. Absolutely SPOT ON Fitz, you really “hit the nail on the head” as the expression goes. You accurately point out “And that’s it! Simple enough, right? But I know these three things are not easy, and there’s no quick way to accomplish them.”Mywise old GrandMother would agree with this. I can hear her in my mind now saying “änything worth doing is worth doing well.” It takes effort, it take work, it takes commitment but if you stay the route, you will get there.

  7. When I made the post above a little less than one year ago, no one had any idea of the challenge we would all be enduring in the new year with the Covid-19 virus. During all the lockdowns and extensions, having our three local business ventures shuttered was , strangely enough, a blessing in disguise. We had more free time to think about what new opportunities to explore.

    We have now, with the opening up of our existing business, made decisions on where our capital will earn with greater safety and with a much more passive approach. Yes, we are adding as much capital as we possibly can to help the local economy recover and also enjoy the tax advantages that the Philippine government has extend. Still, one of our ventures will be completely shifted to a new portfolio as we add money.

    I am thankful that if or when we have a round 2 of this virus attack, my beautiful bride will need not leave home nearly as much in the past. Yes, there is certainly something to be said for creating passive streams of income. I thank you Fitz, for stressing the importance of this component in our financial plan.

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