How Do I Get Rich?
How Do I Get Rich?

How Do I Get Rich?

The age-old question, “How do I get rich?” In order to answer this question, we have to dutifully examine what is means to get rich and why you would want to do it.

When determining what it means to be rich, we have to define it. According to being rich mean “having a great deal of money or assets; wealthy.” So, we could in a sense assume that we are talking about money or assets worth a lot of money; which in this case, we are!

Of course, the argument can be made that one can be rich with happiness from their own personal life due to relationships, joy, love, etc. Here at Joe Six Pack Finance, I can’t help you with your love life, sorry. So, we will be focusing on your hard earned benjamins!


Why would I want to be rich?

This question is a very personal question. For some they want to make as much money as they can so they can donate at high levels and make a positive impact on their community. Some may want a sense of financial security if perhaps they are coming form a situation where financial security is a new concept.

Some may want to escape the 9-5 job they hate, that they feel enslaved to and would like the freedom to do something they want to do. Some may want to be in a better position to support their family, whether it be kids, older parents, special needs persons in their lives, or anyone who needs a little extra help. Of course, some just may want to ball out and buy fancy things that I can’t name here because fancy to me is paying retail price.

When my Wife wants to pay retail price for something…. kidding!

Here is where the magic happens

Alright, here is the time when I share with you the magic, the secret formula, the message in the bottle, the tools of the trade that will make it so that you can be on a beach somewhere exotic overnight. Once you know this secret, your life will change, you will become more attractive immediately, and strangers on the streets will look at you with respect.

Like a boss!

Umm. No. Let me preface this by saying that none of the above will happen. But ok here is the crabby patty secret formula to answer the question “How do I get rich?”

Revenue – Expenses = Profits

Profits -> Invested = Profits^2


There you go! Make sure you follow me on social media, and don’t tell anyone else how to get rich, it will be our little secret on this public blog page…

Top Secret formula here! Serious business!

Formula Explained

OK so this formula is simple to understand, and potentially difficult to master given your situation, however with practice it all becomes easier. Let’s break it down with ideas.

First of all- you are a business, so you need to start treating yourself that way. Even for me it is a shift that I am trying to work into my life. I am a business, and my family’s finances are a business. There are revenues, and expenses, investments and unforeseen bills, insurances and people.

Similar to a business, you need to manage your finances in the same light. Let’s take a look at what I mean by some of these terms:

Revenue: How much money you have coming in

Expenses: How much money goes out for bills, other expenses

Profits: You take the total money coming in (Revenue) and subtract the money going out (Expenses)

Case Study

Here is where the terms can be contextualized. Let’s say an individual makes $100,000 per year, some might say that would make him/her rich! However, that is just the revenue, if their expenses are $110,000 then they are actually going into debt $10K/yr and on the road to bankruptcy!

However, if an individual makes $45K/yr in revenue, and their expenses are $40K, their profit is $5k/yr. Much better than the individual making $100K/yr.

This is where the fun is with this formula, you are just trying to be more and more on the positive side of profit. You can do this a few ways; increasing your revenue, or decreasing expenses.

Have to know what you a spending your money on!

Increasing Revenue

Some people might need to increase their revenue to make this situation even better for themselves. Let’s take the individual making $45K for example. This person could simply increase their income by working more/getting a raise/getting a promotion at work. However, for this example, we are going to assume that they can’t do that.

They could easily do a quick side hustle to earn some extra income each month. Babysitting, fixing cars, websites, youtube, uber driver, part time job, etc. I will have a post coming soon on side hustles. However any one of these could easily net $500/month.

So now that $500/mo turns into $6K/yr. Now this individual has a revenue of $51K and their expenses are still $40K. This person now profits $11K per year instead of $5K!

Sometimes you have to hustle. UberEats has been very popular lately from what I hear.

Decreasing Expenses

So now let’s take a look at another part of this equation, expenses. I’ve gone over how to play financial defense in a previous post here and here. However, for sake of this example, let’s say this individual switches to a pre-paid phone, stops eating at restaurants (not that many are open now…), gets rid of the gym membership and works out at home, and then cancels media subscriptions. This could easily add up to $300/month saved.

$300/month = $3600/year, which we are going to round to $4K/year for easy math numbers. So now we have an individual that has a revenue of $51K, and their expenses are now down to $36K. This makes a $15K/year profit!

This individual tripled the amount of money they were saving per year, and now set themselves up to be in a very healthy place financially. I haven’t even talked about the best way to save money on expenses which I will be detailing soon in its very own blog post.

Investing the Profit

Now here is where the fun begins, now invested correctly your profits and all those little dollars will begin working for you.

Take a look at this chart below, that $15K you hustled for in one year will end up being worth $261,741 in 30 years without adding another dime! If you are invested for the long haul and under 45 years old, you are probably still looking at a 30 year time horizon at least. If you are younger than 30 and looking at a 40 year time horizon the number grows even higher!

The magic of compounding interest over time and investing

Let’s say you are side hustling, reducing expenses and you are doing this for 5 years and are wondering if it going to be worth it. By now, you have $75K saved. $75K invested in a similar manner without adding another dime would be 1,308,705. Yup that is right- you will become a millionaire, 1.3 million dollars after 30 years!

Pay the price today to change your future.

How Do I Get Rich?

In a nutshell that is how you do it. Some people have longer time horizons, some shorter. Some have capital to start with, and some have a negative net worth. Some have skills and a great paying career; some are 18 and have a GED. The great thing is everyone has some sort of skill and asset.

If you are poor, well you know how to live on low income and aren’t used to wasting- uh I mean spending $5 for a coffee every day. So, it may be easier for you to adopt frugality. If you are in a high-income job, then you potentially need to work on the expenses side of the equation to improve the amount that you can invest.

For our investing example, I did assume a 10% rate of return, which as you will see in our investing series can be achievable depending on your investment vehicle. However, this is an introduction to this formula, with more to come!

If you found value in this article, please share this on your social media, I am on a mission to show that everyone regardless of what’s going on can understand how they can be successful.

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