The Only 3 Rules to Be Rich You’ll Ever Need

Building wealth isn’t just about luck, inheritance, or being in the right place at the right time.

True, lasting wealth comes from earning more, spending less, and investing wisely.

In this article, we’ll focus on those three essential rules to be rich.

Along the way, we’ll answer practical questions like:

• What does it mean to increase your earning potential?
• What are the benefits of spending less than you earn?
• Why is investing wisely important?

If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me ([email protected]) or WhatsApp (+44-7393-450-837).

This includes if you are looking for a free expat portfolio review service to optimize your investments and identify growth prospects.

Some facts might change from the time of writing. Nothing written here is financial, legal, tax, or any kind of individual advice, nor is it a solicitation to invest or a recommendation of any specific product or service.

Rule #1: Increase Your Earning Potential

What Does Increase Earning Potential Mean?

Increasing your earning potential means enhancing your ability to generate more income over time.

It’s not just about getting a raise this year.

It’s about positioning yourself to earn more across your lifetime through strategic career moves, skill-building, and creating multiple income streams.

How to Increase Earning Potential?

1. Skill Development and Certifications
Investing in education, advanced certifications, or high-demand technical skills can significantly boost your market value. This is especially effective in industries where specialized knowledge leads to better-paying roles.

2. Career Shifts and Salary Negotiation
Sometimes the fastest way to increase income is by changing jobs or roles. Don’t underestimate the power of negotiating your salary. Many people leave money on the table by not asking for what they’re worth.

3. Entrepreneurial Income or Side Hustles
Starting a business, freelancing, or investing in scalable side hustles can create additional income streams. These ventures offer flexibility and, in some cases, passive income potential that compounds alongside your main career.

Rule #2: Spend Less Than You Earn

How do you spend less than you earn?

Spending less than you earn is one of the non-negotiable rules to be rich.

It starts with understanding your income and expenses so you can make intentional financial choices.

• Budgeting and Tracking: Use budgeting tools or apps to monitor where your money goes. Categorize your spending and identify areas where you can cut back.
• Set Limits: Create monthly caps for non-essential expenses like dining out, subscriptions, or shopping. Automate savings first, then live off the remainder.
• Make Conscious Choices: Align spending with your values and long-term goals. Avoid impulsive purchases or lifestyle creep that eats into your financial progress.

What Are the Advantages of Living on Less Than You Make?

1. Increased Savings Rate
The more of your income you save, the faster you can build wealth. A higher savings rate accelerates your ability to invest and achieve financial independence.

2. Financial Freedom and Flexibility
It gives you options whether it’s changing careers, taking time off, or handling emergencies without stress.

3. Buffer Against Economic Downturns
Living below your means creates a cushion that protects you when the unexpected happens, such as job loss, inflation spikes, or market downturns.

Rule #3: Invest Wisely

Why Is It Important to Invest Your Money?

Saving alone isn’t enough. Your money needs to grow to keep pace with inflation and build lasting wealth.

Investing puts your money to work, allowing it to grow passively over time. It’s the key to turning surplus income into future financial security and freedom.

How to Wisely Invest Your Money?

Smart investing starts with clear goals and a strategy that fits your risk tolerance and timeline.

• Goal-Based Investing & Asset Allocation: Match your investments to specific objectives like retirement, buying property, or funding education, and spread them across different asset classes (stocks, bonds, property) to balance growth and risk.
• Risk Management & Diversification: Don’t put all your eggs in one basket. Diversifying across sectors, regions, and asset types reduces the impact of market volatility and increases your chances of consistent returns.

Why Investing Can Make You Rich

Wealth isn’t built overnight, but with compounding, your investments generate returns themselves that earn returns over time.

This exponential growth can turn modest monthly contributions into a sizable portfolio.

Additionally, investments like dividend–paying stocks, rental properties, or equity stakes in businesses can create passive income streams, supplementing your main earnings and accelerating your path to financial independence.

Is Investing a Good Way to Build Wealth?

Compared to saving alone, investing has historically delivered much higher long-term returns.

While savings accounts protect your principal, they rarely outpace inflation.

Investments, on the other hand, carry risk—but also the potential for significantly greater rewards over decades.

What Is the Best Thing to Invest in to Become Rich?

There’s no one-size-fits-all answer, but common wealth-building investments include:

• Stocks: High potential returns through capital appreciation and dividends.
• Real Estate: Tangible assets that offer rental income and long-term value growth.
• Businesses: Ownership in private or public enterprises with strong growth potential.

The best investment depends on your risk tolerance, time horizon, and financial goals. A diversified approach often yields the most sustainable results.

Conclusion

While building wealth might seem complex, sticking to three core rules can simplify the journey: earn more, spend wisely, and invest intentionally.

What sets successful wealth-builders apart isn’t perfection. It’s consistency.

People who start investing in their 20s and contribute regularly even with modest amounts, are far more likely to become millionaires than those who try to time the market or chase get-rich-quick trends later.

Ultimately, wealth is less about income level and more about what you do with your resources.

Start where you are, use what you have, and stay focused on long-term progress.

If you’re serious about applying these rules to be rich, working with an experienced financial advisor can help you avoid costly mistakes, seize better opportunities, and accelerate your journey.

Pained by financial indecision?

Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.