Becoming Rich Is a Choice

Our life is a series of choices. We constantly have to choose among multiple choices—some good, and some bad. The question then really is are we making right choices or not. If not, why not.

In order to choose right, you must first be able to discern right choices from the not-so-right-choices. This is possible only when you allow yourself enough time to think through choices and their consequences. This is only possible when you stop hurrying through life and take moments to evaluate your options. In today's always connected society, we have lost this art of spending time in contemplation. Instead, when we have time, we use that time to check emails or Facebook messages on the smart phone.

Another problem I see is that we are bombarded with a barrage of useless choices on a daily basis. Choices come to us from many sources including your friends, family, media, society, celebrities, retail stores, and just about anything you come in contact with out in the world. Here are just a few outrageous examples from my observations:

• Everybody in your immediate circle spends money rather than saving it for the future


• Everybody in your immediate circle buys brand new cars on car loans


• Overspending on Black Friday clearance sales just because the society does it

This blog is about maximizing your returns over long periods of time. If you make right choices, even if you never earn more than $50,000 a year, you can still retire a millionaire. So, what are those right choices?

Save and invest at least 15% of your income towards your retirement. If you invest $5000 each year for 30 years in the stock market, your nest egg will reach over $600K when you retire. If you bump up your savings or start investing early right when you get your first job out of college, this could easily make you a millionaire much faster. Saving for retirement (and earlier in your career) is a choice.

For a lot of people, car is their second biggest investment (with a negative return) next to their homes. Most people choose to make payments every month rather than pay cash or don't buy a car they can afford to pay with cash. Over the life of the loan, you could be easily paying out $5000 or more to the dealer.

Getting a good education is a choice. We all speak about how expensive college education has gotten these days. But, many people don't make the choice of starting a college fund for their kids. When it is time for these kids to go to college, they are saddled with lots of debt or have to make dramatic sacrifices in the type of education or college they go to, which in turn, has consequences for their earning potential later in the life.

Healthy lifestyle is a choice. Each time you are eating junk food, you are making a choice that could affect your health negatively, especially during old age. It could cost you in terms of quality of life or money.

Lastly, living below your means is one of the critical choices we can make. Everything from restaurants, to insurance deductibles, to cell phone contracts, to electronic gizmos, to cable TV packages are lifestyle decisions that come with a range of cost. We need to evaluate those costs, make changes, and save the difference for your future.

These are simple choices, but they have profound effect on the quality of life. This is why I believe that becoming rich is a choice. Only us, as individuals, are responsible for making our own choices. Nobody will make the RIGHT choices for us—no government, or society will make it for us.  Hence, choose wisely and responsibly for a happy and healthy retirement.