Hey, it’s the new year and why not put up a post to aid a common new year resolution. I personally committed that I’d be earning a lot more money and be “richer” by the end of the year. And I’m quite inspired to reach that goal for this year. We’ve previously created this post on how to make money but without good financial decisions even that wouldn’t translate to being rich.

Here are some ideas on how to get rich. And no, we won’t suggest buying lottery tickets and other get-rich-quick schemes. We do believe in putting effort and hard work.

Set a target

Define “rich.” Is being a millionaire your idea of being rich? Or maybe just having enough dough to get you through life (until after retirement) to have three square meals a day and a roof over your head? Set a quantity which you can use as the standard (something that, if you attain, you can finally say, “I’m rich”).

List your assets and liabilities

Take note of what you have. How much money do you have in the bank? Are you still paying the mortgage or the house is already yours? Knowing how much spendable money you have would give you a good idea how long you still have to go to consider yourself rich.

Do the math

If you have a stable job, it’s easier to check whether or not you’ll get your to goal within a lifetime or not. You can use this calculator to help you get the values straight. If you won’t be, then it’s time for you to consider diversifying your income. That’s where our post on making money would help.

Start saving…

Remember that the only money that you can spend on whims would be money saved not necessarily the money that you have in the bank. You might have tens of thousands in the bank but realistically, that’s just a year’s worth of college learning for your kid. A good practice is to get 10-15% of your monthly income and send it straight to a savings account not to be touched unless for very grave emergencies.

…and at the soonest

Starting your get-rich schemes is best done the soonest possible. Splurging on a new fancy-schmancy stuff is not what you really need. If you’re going to buy things, make sure that they’re investments. Buy a second-hand car instead of buying a brand new one. You can use the dollars you can save from buying brand new to start out time deposits or buy stocks that could yield a profit after some time.

Take advantage of compounded interest

So you have the spare cash and you don’t want to take risks in a volatile stock market? Try investing in time deposits instead. The compounded interest over the years that you keep your money in the bank offer good-enough returns. Scout out deposit plans offered by banks to find out which is the most attractive to your needs. A bank can really be your friend.

Take the risk and invest

You need not go all out in investments. Making a bad one while committing a good sum of your fortune can easily wipe out everything that you’re worth. Just pick out a few ventures to give you a feel on how to invest. Invest on stocks, business, treasury bills and real estate. If you’re still building your portfolio, do not, by any means, quit your day job. Stability is key in getting rich.

Get a graduate or post-graduate degree

By average, a guy with a graduate degree earns around $20,000 more a year than a guy with a bachelor’s and $40,000 more than a guy with just a high school diploma. Who said education isn’t a good investment? Get back to school and get those degrees.

Get married

Well, it would be great if you could actually marry royalty (or a lottery winner) so that you instantly have access to millions (depending on the prenuptial agreements). However, there is a practical side to this. In most places, couples can take advantage of tax cuts (having kids also present more tax cuts for you). Management also tends to favor family men for promotions and career advancements.

Check your health

Make sure that you can also stay healthy. The less time and money you spend in hospitals, the more money comes to your savings. That also means more opportunities for you to enjoy your assets. Corny as it may seem, with the rising costs of medical treatments today, health is wealth.