ChatGPT: How do I Get Rich?

Is anyone else having fun asking ChatGPT random questions?

Let’s see what Artificial Intelligence (AI) has to say about getting rich and a little commentary from the Financial Independence (FI) Guy.

Me: How do I get Rich?

ChatGPT:

Getting rich is a complex and multi-faceted process that depends on a variety of factors, including personal choices, skills, and opportunities.

Me: Ok... tell me more!

Here are some general strategies that can help you build wealth over time:

1. 1. Develop valuable skills: In order to earn a high income, you'll need to develop skills that are in demand in the marketplace. This may involve getting a degree or certification in a field that's in high demand, or developing specialized skills through work experience.

Me: Yes! But not for the reasons you may think. In the beginning stages of wealth building, you will need to sell your life hours to the highest bidder. That is at the core of any financial freedom plan. BUT, you are not going to get rich from a “high income”. You will get rich by buying assets, and the more you have left over after your living expenses to buy assets the faster you will get there.

Assets – Put money in your pocket.

Liabilities – Take money out of your pocket.

1. 2. Live below your means: One of the keys to accumulating wealth is to spend less than you earn. This involves creating a budget and sticking to it, avoiding unnecessary expenses, and saving money consistently.

Me: Yes! But “living below your means” sounds like such a downer! Rather than talk in terms of living below your means, budgets, etc. let’s focus instead on your “savings rate”.

Do you remember I said the 3 inputs you need to figure when you can retire and how affluent you will live once you stop working for money? Go back at read the 1 page financial freedom plan blogs. They are time, compound rate, and starting net worth.

Let’s run a couple scenarios to illustrate how important savings rate is.

• You make $100,000
• You have a savings rate at the U.S. average about 8% .
• Your salary will increase at a rate of 5% per year.
• You estimate your investments will receive a 8% return.
• You want to retire and live off your investments, and let’s say you can do that with $100,000 per year of passive income.

To make $100,000 per year you will need $2.5M (Rule of 25).

It will take you 35 years to hit your freedom number! Good for you, you are done by 60 years old!

In scenario 2, everything is the same except you are able to achieve a 50% savings rate on your income. You will hit your freedom number in 17 years! Now you are done by 42 years old, and instead of selling your life to the highest bidder, you can spend time getting a higher compound rate and have much more time to 4x your net worth, and have a much wealthier lifestyle in retirement.

The point of this is to illustrate the importance of your savings rate, to work at increasing it from 8% to 50% and completely change your life!

1. 3. Invest wisely: Investing your money can help it grow over time, but it's important to do so wisely. This may involve working with a financial advisor, learning about different investment strategies, and diversifying your portfolio.

Me: Bravo ChatBot! Invest wisely, but how do I do that? Education, education, education. Go to seminars, workshops, take some classes, and educate yourself and do not rely on a financial advisor to be the wizard behind the curtain. This will take time away from watching every NFL game or binging on Netflix, but it could give back decades of your life.

1. 4. Start a business: Starting a successful business can be a path to wealth accumulation, but it's also a risky venture that requires hard work, dedication, and a strong entrepreneurial spirit.

Me: Side Hustle! Start a business that you can do on nights and weekends. Google most successful side hustles. Does anything of those ideas get you fired up? The point of this is to increase your savings rate, and possibly create something that your passionate about that you can pivot into after you leave the J.O.B. (just over broke).

1. 5. Network and build relationships: Building a strong network of contacts and relationships can help you access new opportunities, learn from others, and open doors to new career paths or investment opportunities.

Me: Your net worth will be the average of the five people you spend the most time with. Yep, hanging out with a couch surfer playing video games will crush your net worth. On the flip side, networking with people on a similar upward trajectory will provide you with excitement, collaboration, and maybe future business partners. You can also call this your “circle of influence”, and you should be very deliberate about who you’re spending your time with. The next level is finding a mentor that’s already where you want to go and pulling them in to your circle of influence.

1. 6. Be persistent and patient: Building wealth takes time and effort, and it's important to be persistent and patient in your efforts. This may involve making sacrifices in the short-term in order to achieve long-term financial goals.

Me: The most important word in the investing world is “patience”. It’s classic tortoise and the hare. There are people that will get rich by speculating on the “next big thing” with the hope of retiring overnight. This does happen, but go ahead and buy a lottery ticket because your chances of success are similar. However, if you spend time educating yourself, surrounding yourself with the right people, and develop a financial freedom plan that you control your changes of success are 100%

It's important to remember that there is no single "right" way to get rich, and that the strategies that work for one person may not work for another. Ultimately, the key to building wealth is to find a path that aligns with your values, interests, and goals, and to be disciplined and persistent in your efforts over time.

Me: The fact that there is no single right way to get rich might be why it’s so hard for people to get their head around it. But clear out the clutter and see my blogs about the 1 page financial freedom plan and get yours in place. And then develop a network of people with similar alignment and start your financial education.You will be amazed with the transformational power of these actions.

Please smash the “like button” or leave me a comment if you found this information useful.

Best,

Derek

Derek Petersen

Chief Compounding Officer

Aviara Capital Investments