Hello hello,
Ah, that famous question that often comes up in messages on my various social networks.
We’ve all asked it at least once in our lives.
So I thought I’d write an article about it. In this one, I’m going to challenge the idea that money is necessary to become rich, with the aim of showing you that it’s possible to succeed financially from nothing.
As usual, this blog offers you the chance to listen to the content with a YouTube video, which you can find here.
And for loyal readers, 3-2-1 – here we go!
Since the creation of money, a dream has been shared by the vast majority of the population: to one day reach fortune and live like millionaires, with health and freedom by their side. Just look at the number of people playing the Euromillions. A single dream: to rise above our circumstances and achieve a fortune that will enable us to escape poverty and live without financial worries, without fear of a difficult end of the month.
So I could have kept the suspense and told you at the end of the article, but here’s the answer: YES.
Taking into account statistics, various studies on the subject and current events, everything points in favor of this answer.
How much does it take to be considered rich in Switzerland?
The Swiss Inequality Database of the University of Lucerne has made the calculation for each canton. Firstly, if we take the national average, if your household earns more than CHF 97,500 a year before tax, you’re in the country’s richest 20%. To join the 5%, your household needs to earn CHF 167,000, and to reach the 0.1% club, you need a net salary of CHF 1.2 million. On a cantonal level, to be in the top 20% and 5% on the Lake Geneva, Zurich and Basel regions, you need CHF 100,000 and CHF 200,000 net salary respectively.
Not surprisingly, you need a net salary of CHF 133,000 and CHF 311,000 to be in the top 20% and 5% in the canton of Zug.
If we focus on wealth, then you need a fortune of over CHF 100 million to be among the “super rich” in Switzerland. A fortune that can shelter a family for hundreds of years.
But then again… just between us… 50 million, invested in the stock market at a rate of 2-5% annually, would already give us CHF 100,000 in passive income per year, so that would already be enough.
Is being rich just a question of rich people?
Let’s face it, there are plenty of examples of people from wealthy families who went on to become rich and famous, like Trump or Kylie Jenner.
But does that mean you should get discouraged and tell yourself you’ll never make it? Well, just because you weren’t born with a silver spoon in your mouth doesn’t mean you don’t have that future. The fact that you were born into an underprivileged or modest family, or that you didn’t have access to the most prestigious training, doesn’t make you a person condemned to remain trapped in his or her condition.
And there’s no shortage of examples. Take Bernard Arnault, CEO of LVMH, who grew up in a modest family in France and became one of the richest people in the world thanks to his luxury goods company.
Or Karl Albrecht, the founder of the Aldi supermarket chain, who started out with a small family grocery store and transformed his business into a multinational present in many countries.
These examples demonstrate that, despite humble origins, it is possible to succeed and become a millionaire. But the key can be summed up in three words: hard work, perseverance and time.
And this is not to be confused with luck, winning the lottery, betting on Bitcoin and so on. These miracle methods should be discarded. You really need to keep these words in mind, which are hard work, perseverance and time.
The keys to success: Work, Perseverance, Time
Work, because you can’t aspire to wealth without rolling up your sleeves.
So no, you’re not going to get rich by doing the dishes or cleaning the house (I’d love to^^). When I say roll up your sleeves, I mean take action and don’t just sit on your sofa. Money isn’t going to magically appear from your TV screen.
Perseverance, because there’s no question of giving up at the first sign of trouble. The road to fortune is a long one, paved with pitfalls that seem insurmountable, but with perseverance, anything can be overcome.
Time, because you can’t reach your fortune in 3 days. You need patience, so you can reap the rewards of the little seeds you sow.
If you want to get started, many authors recommend that you get involved in something you’re passionate about, that drives you, that obsesses you, so that you don’t give up at the first sign of trouble. You need to monetize this passion, as writers do. They write with passion and then sell their work. One example is J.K Rowling, for whom this has worked, who is worth billions of dollars and was the highest-paid novelist in 2019.
Unfortunately for all of us, getting rich isn’t something you learn at school.
But like all work, it requires patience, perseverance, effort and, above all, a sense of purpose. You have to know where you want to go. But above all, you need to get rid of the negative misconceptions that are holding you back. Fortune is made for you, but only you can decide that.
Take your project in front of your eyes, estimate the costs of setting it up, estimate the profit it can bring you. You don’t have the money to set it up? At this stage, that’s not a problem… If your idea is revolutionary, you can always pitch it for funding. And if you’re passionate about your project, you’ll be able to do a lot with your skills alone.
One thing’s for sure: the skills you lack can always be acquired through online training or books. Now you understand why time and hard work are key factors in success.
Also, without wanting to start your own business, it’s perfectly possible to get closer to wealth, by adopting good financial habits.
I told you about the 50/30/20 method to better manage your expenses and have part of your salary invested in the stock market, real estate or alternative assets. And to save more, I also talked about creating a second source of income, whether passive or active.
Yes, an active side business isn’t the best solution, because it requires a lot of effort. However, it can allow you to invest more.
A few years ago, I was a student. I had 2 jobs on the side to help my parents finance my studies. I went to class from 10am to 4pm, from 4pm to 6pm I gave tutoring classes, and from 6pm to midnight I worked in the service department. At weekends, I also did service.
Those were busy days, with little rest, but I had a clear objective: to gain financial independence.
So, by combining hard work, perseverance – because yes, there were many evenings when I would have preferred to go out clubbing with my friends, or sleep in on the weekends – and time, since I was allocating the maximum of my time to these jobs, I succeeded. And I have no regrets, I achieved the goal I had at the time.
So if I could do it, you can too! And with that extra money, after you’ve built up a security fund, you need to find investment opportunities that pay you between 5 and 10% annually.
I can hear you whispering in the distance that this isn’t how you’ll get rich, but it’s not! All these tips will bring you closer to your goal.
Remember that small streams make big rivers. And the sooner you adopt this financial education, the faster you’ll get closer to your goal. Adopt the good habits and reflexes of saving, even small amounts, and reduce your spending. In fact, I’ve made you a Budget Excel to help you track your spending and save better, so don’t hesitate to download it.
Similarly, many millionaires who started from nothing tell their stories in books. Don’t hesitate to read a few, they’re sure to inspire you.
And if they’ve succeeded, why shouldn’t you?
The important thing is to do everything you can to at least try.
After all, nothing ventured, nothing gained.
So get your computer, pen and paper, and write up your project. Knock on the doors of start-up support organizations that can help you get on the road to success. And if you don’t have a project, follow the tips on how to create a second source of income, spend less and manage your budget better.
Persevere, and be patient, it will always lead you to success. Remember that it took Warren Buffet 23 years to become a billionaire.
So now to your investments!
