How to Get Rich Doing Nothing

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How to get rich doing nothing-MakeLivingGood.comWho doesn’t want to wake up in morning with millions of dollars in bank? We all do, isn’t it? I need to make a confession to you regarding How to Get Rich Doing Nothing.

You will have to do something to become rich. Actually it’s a 2 step process which I will explain in this post later. The first step involves ‘doing nothing’ part of the process. Then the second step involves you lifting your mouse and making 3-4 clicks once a year.

If you think that’s too much of hard work, then stop reading here. You might already be exhausted reading this far.  😉

I knew you will not stop but continue reading. This is because you want to know how to get rich by doing nothing. I will explain the first step of the process now and then move to second step later in this post. So, let’s get started and be rich.

{STEP 1} – Doing Nothing

In this part of the process, we talk about various ways to get rich which involve practically no work at all from our end. So, make sure you take notes and adopt as many tips as you can to get rich in easy way. Here you go with first tip:

Tip#1 – Avoid relocation on your expenses

If you are a home renter, then this might be interesting to you. It was also covered in more details inside How to become rich when you are in your 30s where I shared a story about two of my friends one of whom lost money while another saved money just by staying in same house.

Let us briefly look at their story from previous post. Sammy and Rabi were both renters in US and still they are. Rabi loves switching home every year while Sammy doesn’t like moving and prefers comfort over exploration.

Due to this difference in their choices, there’s huge amount of work that Rabi had added to his schedule in addition lots of additional money that Rabi was spending in due process.

Rabi was paying movers every year and spending hours himself with his wife and kids to pack the stuff for moving to their new home. Then he and his family was spending couple of next days in settling in new place, getting kids enrolled into school, changing address information in all important accounts such as banks, credit cards, social security office, etc & moving all utilities to new address location which is not an easy task by the way.

On the other hand, Sammy was relaxing in his same old house that he rented few years ago.

It’s been almost 6 years since both of my friends were renting their apartments.

In last six years, Rabi had spent over $105k in total rents paid while Sammy only paid 88.5k ( approximately 16% less ) for similar houses.

So, Sammy had saved about $16,500 in six years while doing nothing compared to Rabi who was unnecessarily active in some aspects of his life.

After talking to them extensively on their expenses, I prepared this table to compare their living costs. Let’s look at it now.

How to save money while renting an apartment -

By the way, Sammy didn’t realize that his boring life and laziness would ever bring him extra money until he looked at above calculation. It was total ignorance on his part. Rabi was also ignorant about the consequences of his decisions of being an active mover.

It may not seem a lot of saving ($16,000) but remember that Sammy didn’t have to work to keep that extra $16000 in his bank account. Moreover, we will see later in this post, how someone can get easily get rich by investing this amount, so stay with me.

So, this is the rule number 1 to get rich by practically avoiding to act – Don’t Switch Home unless you really need to. As you have seen, ‘doing nothing’ can also make you rich over time.

If you are interested in becoming a home owner, then I recommend you to read this post and this book before you put any money down. It will save you tons of money, guaranteed.

Rich Dad Poor Dad by Robert T Kiyosaki - MakeLivingGood

By staying in same home, not only saves us money but it also saves our energy which gets wasted on non productive tasks. We can put that time to a better use. For instance, we can spend that time on the activities that we like such as reading a book, travelling or even working on a new business plan that might bring us closer to financial freedom sooner than anything else.

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Tip#2 – Don’t puff on your cash

If you are a smoker then this tip will prove to be an eye opener for you. Even if you just started smoking recently or if you smoke only one or two cigarettes a day, it is important that you quit it before it’s too late.

As we all know that every chain smoker today, was once a one or two cigarettes smoker. This is how they it all starts.

My father started smoking in his early twenties and didn’t stop for next 40 years. He was a perfect example for me to see how addiction plays its role.

My father is a kind-hearted person who doesn’t shy away from hard work. He tried to quit smoking many times and also succeeded to stay away from it for months and even years sometimes. But just one bad day was enough to push him back into smoking habit again.

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So, one day I sat down with him and did below analysis thinking that it will inspire him to quit smoking. I hope this will help anyone who is looking for a strong reason to quit smoking.

A regular smoker consumes anywhere between 2-3 packs a day. As of today, a pack of 10 cigarettes costs about $6.69 in US.

So, at this price $13.38 are spent every day if someone consumes 2 packs a day. Add this number for a year and it comes to be around $4,884 a year.

Now if same money is invested every year at 10% rate of return, then in 40 years this person (one who smokes) will have $2.6 million in his or her assets. Below is the calculation:

How to become a rich by not doing something -

When I myself ran these numbers I was astonished. We don’t pay much attention to little expenses we do everyday but collectively it can make a huge difference in our financial lives.

With above calculations, $13.38 a day is not much but investing same amount if yields $2.6 million in my lifetime, then I can’t ignore it. Do you?

Tip#3 – Don’t drain your money

As with smoking, alcohol is another addictive substance that drains away our chance to be rich.

According to GoEuro report, on average $1330 a year are spent on beer alone per person. The actual expenditure may be quiet high if other forms of alcoholic drinks consumed by same person are also considered. As per this report, New York is 3rd largest while Helsinki is at the top with $1542 spent per person per year on beer.

Money spent on beer per person per year -

source: GoEuro

Now going back to our topic of getting rich by doing nothing. If we apply same math here, this is how the numbers would look like:

Become rich by not driking beer -

As we can see, by avoiding drinking a beer a day, I can save $1.33 million during my lifespan. Another example of how to get rich without doing anything.

I believe the only way to truly save money on something is to avoid it completely. Our goal should be to stop any leakage of money today so our savings turn into huge wealth later in life. This is how to get rich formula that many follow today.

Tip#4 – Cook at Home

A friend of mine is a hobbyist food critic who loves exploring new restaurants across the city and country.

She spends about $60 a week to fulfill our passion and astonishingly she’s been very consistent throughout.

When I asked her for how long she was doing it? She told me ever since she started earning about 9-10 years ago.

This raised my eyebrows a bit.

So, I couldn’t stop myself from running the numbers on how much money she had already put into this:

How to become rich by not eating out -

This was equally shocking to her as to me when I told her that she had spent close to $62,790 in this passion of hers.

She replied by saying that it was around $30k what she actually spent.

As many people do not understand the concept of opportunity loss, they look at the actual money that they spent but not what they could turn that money into by properly investing it on time.

Let me share another very interesting way to look at these numbers.

Say instead of spending $60 every week at her favorite restaurants, my friend was actually saving that money & investing it at 10% annual returns for first 10 years of her career.

She would have accumulated about $62,790 as we saw in above calculation. Now say from 11th year onward, she starts following her passion and spending $60 a week on hour food critic passion.

She also puts that $62,790 into some investment that would say yield her 9% return on average for next 35 years. So by the time her retirement approaches, she would have that $62,790 turn into about $1.45 million.

Pretty cool, isn’t it? Just $60 a week can be turned into $1.45 million. If we think about saving and investing this way, getting rich doesn’t seem to be difficult at all, right?

Getting rich is easy -

On a side note, I also believe that our moms and home-makers work very hard 365 days a year to cook delicious food for entire family and occasionally they also deserve some break. So, once in a while taking them to a restaurant shouldn’t break the bank.

This was another way to get rich doing nothing from our end.

Tip#5 – Cut Your Power Bills

I learned this hard way. I was just lazy and not paying attention to details when I enrolled for my home’s electricity plan. The plan that I chose was month to month contract. In other words, the rate of per unit (KWh) electricity sent to my home will be revised every month by power trading company.

What could go wrong with it, I thought. I would get cheaper and cheaper electricity with time as historical energy cost is going down.

But what I didn’t realize was that, I had given someone else the power of controlling how much money they could take away from my bank account.

After a while, I found out that there are many power trading companies in my city. They all want our business. So, they all offer competitive discounts to earn a new customer. So, I used their game to beat them and simultaneously reduced my electricity bills substantially.

This is how I did it:

There’s a website called powertochoose which provides all electricity plans in your zip code.

power-to-choose -

After entering my zip code, I clicked on “View Results” button.

Next, I sorted the results by Price/KWh and choose the plan that offers best rate over longest time frame. I prefer to go for 12-15 months of contracts that way I don’t have to worry for changing the provider for a long time.

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From there, I read their Fact Sheets (very important) to understand the cancellation policies and how these rates will be actually calculated on bill. If I have any doubts, I also call them and ask them how much would my bill be if usage is 900KWh? This gives me clear idea about how they will calculate a bill.

Using this strategy, I have personally cut down my power bills by on average $110 per month.

I didn’t have to do much for it other than just making a phone call or filling an online form.

Do we really care which company provides electricity to your home. After all, it’s just electricity. There’s no brand value associated with it.

So, it’s plain common sense to switch to the cheapest plan that you can find for your location.

I also highly recommend to find any power leakages in your home. I found one with my water heater few years ago and saved tons of money in it. You can use this tool to find why appliances are consuming most of the energy in your home.

Tip#6 – Do you really need expensive Internet plan

Internet makes dreams come true and one of the reasons it is such an important invention is that people can access information much faster and easier than before.

Believe it or not, Internet is also a commodity product now. At least in developed parts of the world.

Here in US, there are on average 4-5 companies that can provide same quality internet service at your home.

Here is one way to find internet plans offering better rates in your area.

I recently switched my internet provider for home and reduced my bill from $82 to $45 a month. That’s almost 50% savings by doing nothing apart from making a call or filling some online forms.

Tip#7 – Get Free Phone

If you are paying $100 a month on phone bills which is quiet normal nowadays with voice & data plans, then you might be giving away a lot of your money.

For many years in my professional life, I didn’t pay a single penny on phone bills. I actually asked my clients to pay for my phone bills and they happily did for the service that I was providing.

Here’s my suggestion to you, if you work in a company or for clients who can pay for your phone, or reimburse you for official calls that you make using your personal phone, then you should ask them today & get this setup. Once you have the device, you can disconnect your personal phone and switch all your contacts to new number.

How I do is, I ask my clients to reimburse my phone bill for the official calls that I make. This way, I can keep my personal number with me and tomorrow if my clients are changed, I don’t have to change my phone number. So, just an advice.

In case you can not get a phone for free or reimbursement from your clients then you may be able to get a corporate discount on your personal phone plan. Most mobile service providers offer corporate discounts. You can check with your company’s human resource department to get details.

If you can’t get any of these, then try to switch to VoIP, Skype, Facetime or WhatsApp voice which are free. There are plenty more apps that offer free-calling over internet. The only issue with these is that you either need to be at home (using your wifi) or be in some free wifi area to make free calls.

Another trick that I have seen people doing is, they club multiple lines into one single phone plan. For instance as of today T-Mobile provides unlimited voice and data plan for just $35/month (including tax) if at least 4 lines are enrolled. Some of my friends last month switched to T-mobile from AT&T to save $60-70 per month on their individual phone bills.

Tip#8 – Enroll into Retirement Plan

I am not sure why many people miss this. It’s one of the easiest ways to build wealth over time.

Many countries across the globe have pension plans mandated by their governments. In USA, it’s called 401(k).

Under 401(k) plan, if an employee of a company contributes $100 a month, then his company also needs to contribute $50 to $100 into his account to match employee’s contributions. This is like getting free cash.

As per 401(K) rules, you can save up to $18,500 from your paycheck annually. Those who are 50 years or older can save even more by adding what’s called a “catch-up” contribution. That’s limited to $6,000 a year. So in total $24,500 can be saved by them while others can save up to $18,500 tax-free.

I highly recommend you to check IRA vs. 401k vs. Roth IRA to understand which retirement plan would work best for you.

This whole process doesn’t take more than few minutes to fill up a form and send to company’s human resource department. After that every month, X% will be deducted from your paycheck and put into 401(K) plan and your employer will also contribute similar amounts into your account which makes your money grow faster & tax-free.

Just to have an idea of how much money one can save by enrolling into a retirement plan, here’s some calculation:

Did you ever think that filling a form once in lifetime would get you $6.2 million? I never did before I learned about this.

Here’s another perspective to look at this amount. 50% of $6.2 million that is $3.1 million, was totally free to you as it came from your employer. Even if you switch from one employer to another, you can easily port 401(k) to new employer and start using it there.

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Read More: Knowledge is the Power in Investing World

Tip#9 – Saturday night Movie night

My family loves watching movies and collectively we might have spent many precious hours of our lives in front of TV or in movie theaters .

In my twenties, we used to go for movies once every week.

By the time I realized the amount of time and money I had wasted on buying movie tickets, it was too late. So, just to give you quick idea, here are some numbers:

Movie tickets = $12 to $17 a ticket at AMCs

Popcorn = $7

Soft Drinks = $4

Total = $23 – $29 per week.

Yearly expense = $1508

In addition to this, I had cable connection at home from Comcast which costed about $90 a month ($1080 yearly).

So, I was spending about $2588 on cable and movies every year.

Now, we have disconnected the cable and switched to Netflix ($8.65/month) + YouTube (free). So, we will save about $2480 a year.

Disclosure: we still go to movie theaters but occasionally, not as frequently as we used to.

Remember I mentioned in the beginning of this post – how to get rich doing nothing, that getting rich is a 2 step process. We discussed first step so far, let’s move to 2nd step next.

{STEP 2} – How to Get Rich

In step#1, we learned how to save money by doing nothing. We learned that by optimizing our expenses (cable TV, phone, internet, utilities, etc) or staying in same house & enrolling into 401(K) plan, we can save a lot of money over our life time.

But saving is just half of the process and most important part of this process is 2nd step. So, do not skip this one.

Let’s get started:

If we combine all the savings we discussed so far, then it comes to be around $11,000 – $12,000 a year excluding 401(K) contributions. That’s about a $1000 per month extra saved in our bank account after implementing all the tips from step 1.

If you have saved this much of amount, then congratulations to you.

Now if we just leave that $1000 in bank specially in an American bank, then it will do us no good at all, as these banks do not offer any interests on our savings.

So, we need to invest that money into good interest bearing investments.

Now which investment is good for you, depends upon various factors such as your age, risk appetite, your goals in life, etc. So, what I have done is, prepare a summarized report on various available investments & their returns vs time it would take anyone to grow a million dollars. I highly recommend you to check the step by step analysis here.

Below is a quick recap of my findings.

Retirement Calculator -

In above table, you can see that by investing $1000 in a saving’s account which yields 0.01% per annum, it will take 82 years to reach first million dollars.

But if you invest same $1000 in stock market via low-cost index funds such as Vanguard S&P 500 or direct investment in stocks which is yielding about 9% return, you can reach first million dollars anywhere from 16 – 23 years time span.

Remember during this time we won’t be actively doing anything to grow a million dollar. We will just need to set up a one-time automatic monthly investment into an Index fund. That’s it!

Its first million that takes time to grow. After that next million is way to faster. For instance, if someone continues to invest $1000 every month for 45 years at 9% yield, then he would get a million dollar within 23 years but if he waits for another 22 years, then his money will grow by 7.5 times to $7.5 million. That’s the magic of compounding.

Again, this $1000 is an extra cash that we saved by not doing any active work but by avoiding some activities. If we can include our regular savings with this $1000, then we may end up with pretty serious amount of money by following these simple yet very effective tips.

By the way, have you heard about Robinhood app? If not, then you are wasting a lot of money in trading fees. They offer $0 fee on stock purchases and it is one the best stock brokerage platform. It is free to join and you can also get one free share of any US company when you use my link to register for free.

It’s a matter of building good habits. I recommend you to check this post – Top habits of successful people that I am working on too.


Here are 2 more ways to make money by doing nothing. First method is through credit cards using which I made a good amount of free money from credit cards without any purchases. Second approach is to save a lot of money while buying your home or any real estate property by applying simple ideas. These additional tips with others mentioned in this post, will save anyone a ton of money for their financial freedom fund without them actively working to earn that money.

I would love to know what are your money-saving tips to build lots of wealth over time. Let’s meet in comments below.

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How to Get Rich Doing Nothing


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