How to get rich with less salary: 7 secrets to get wealthy
As soon as you search on Google “Paypal Mafia”, Wikipedia’s website will appear in front of you. When you click on it, a photo will appear in front of you.
In this photo, most of the people—you already know them. Let’s start with Javid Kareem, today YouTube must be running — Javid Kareem is the cofounder of YouTube. He used to work in PayPal earlier, but when he got money, he created such a big platform like YouTube, and Google acquired YouTube.
Now when we talk about the world’s richest person — Elon Musk, he was also a part of this PayPal Mafia. If he made even one mistake — maybe you are also making the same mistake today — then he would not have become the richest person in the world.
When eBay bought PayPal, they paid 1.5 billion dollars and Elon Musk got 175 million dollars, meaning more than 1500 crore INR. If today this much money comes into your account, can you make more money from it? Most of you will answer yes — money attracts money.
All these PayPal Mafia names you can read by going to Wikipedia. Peter Thiel — maybe you have heard his name — he is also called the “Don of PayPal Mafia”. He became the first outsider investor in Facebook. And when DOGE was going highly viral, he and Elon Musk were running it together.
All of them are friends with each other, all have created big platforms. Someone created YouTube, LinkedIn, Yelp, Kiva, SpaceX etc. All of them have made huge money.
7 mistakes — if you make them, you can never become rich
1. Business
Elon Musk could also have been an employee. Employees get salaries but he wasn’t a normal employee — you can say he was a cofounder. Founding team means the people who start something.
Now I give you two options:
First option: You are getting a job in an MNC with a 70,000 rupees per month salary.
Second option: You get a chance to work in a startup but the startup says they can give only 60,000 salary and you feel the startup has very high potential.
Most of you will go with the MNC. But in most startups you get ESOPs (Employee Stock Ownership Plan), that means employees are also given stock ownership. Elon Musk had huge equity in PayPal and that’s why when eBay came, he made huge money.
All companies that bring an IPO already have ESOP programs and not only the founder or co-founder becomes a crorepati — the entire founding team becomes crorepati at once.
According to me there are 4 ways to get equity
1. Business
Here you have 100% equity.
2. Job
But do a job where you are getting ESOPs.
3. Sweat equity
One way is that you get stock for free but because you are a working partner, you get sweat equity. Later if that business becomes big, you have a share in it.
Pushpa movie example: daily goods’ commission rate is fixed, but Pushpa says “I only want 4% as partner” even though that is lower than commission.
If you become even a small partner in a business, that is better than earning small money. If the business grows where you are a partner, your growth graph can suddenly explode — this is called the J-curve. Anyone who caught the J-curve in life is the one who becomes rich.
Even a 1% partner is still a partner.
4. Share buying
You buy shares. Small companies’ shares can be bought cheap. When crashes come, stocks become very cheap — so you are buying equity. If you don’t buy equity, you won’t get a J-curve, and without J-curve you cannot be rich.
“Without Equity You Can Not Be Rich.”
Among all rich people in the world, 50% are entrepreneurs who have equity in business. If you don’t have equity, you cannot become rich — sorry to say.
Now there are 2 benefits of buying equity in stocks:
- Their value increases with time
- Most listed companies give dividends
Ambani example:
He does not take salary, he takes crores in dividends.
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And when they take dividends, it is shared among all shareholders. Dividend = profit-sharing mechanism.
This is passive income
One way to earn passive income is dividend, another way is rent.
But property today is very expensive.
If you cannot buy full property, you buy REITs. There are 3 REITs available in India.
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They give 5–6% dividend every year. Your investment grows and dividend also comes.
You must create a passive income somehow.
5. Delegation
As you make more money, you must learn delegation.
Delegation = you should not do all the work yourself.
All rich people — they sit in the back of a Rolls Royce, they don’t drive themselves.
For non-productive tasks they hire staff.
People save money on small tasks, but rich people save time.
And they use time for productive work.
Delegation = How This Can Be Done Without Me?
6. Learning curve
The world is changing, technology is changing.
If you go to a company and say “give me equity” but you are not deserving, not creating value — the company will not give you equity.
To get equity, you must have skills.
No skill → forget equity.
Anyone you see growing fast in life — they are learning fast.
First You Learn Then You Earn
Your learning speed controls your earning speed.