As soon as people understand the value of money, they start wishing for it. But wishing alone does not make anyone rich. Real progress begins when a wish becomes a clear goal, backed by a plan and steady action. In his classic book Think and Grow Rich (1937), Napoleon Hill describes a simple six-step formula for turning a desire for money into a concrete financial result.
In this article, we explain each of the six steps in plain language, show a practical example you can adapt, look at what modern research says about this approach, and highlight a few common mistakes to avoid.
Where the Formula Comes From
Hill presents the six steps in the chapter on Desire, which he calls the starting point of all achievement. His idea is that a vague hope for “more money” leads nowhere, while a specific, written and regularly reviewed goal keeps you focused and motivated. If you want the full context, see our summary of Think and Grow Rich.
The 6 Steps at a Glance
| Step | What to Do | Why It Matters |
| 1 | Decide the exact amount | A clear target focuses your attention |
| 2 | Decide what you will give in return | Money comes from creating value |
| 3 | Set a specific deadline | A date turns a wish into a commitment |
| 4 | Make a plan and start immediately | Action matters more than perfect timing |
| 5 | Write it all down in one statement | Writing makes the goal concrete |
| 6 | Read it aloud twice a day and picture success | Repetition keeps the goal alive |
Step 1: Define Your Exact Money Goal
“I want to be rich” is not a goal. Decide the exact amount you want to earn or save. A precise number tells your mind what to aim for and makes it possible to measure your progress. Choose a figure that stretches you but that you can genuinely believe in.
Step 2: Decide What You Will Give in Return
Hill is clear that there is no such thing as something for nothing. Money is exchanged for value, so decide what you will offer: more hours, a new skill, a better service, a product, or solving a bigger problem for your employer or customers. This step turns a money goal into a career or business goal.
Step 3: Set a Deadline
“Someday” never arrives. Pick a specific date by which you intend to reach your goal. A deadline creates urgency, helps you break the goal into smaller milestones, and makes it easier to plan your weeks and months.
Step 4: Create a Plan and Act Immediately
Write down how you will reach the goal: the skills to learn, the clients to approach, the savings to set aside each month, or the side income to build. Then take the first step straight away, even if it is small. Waiting until you feel completely ready is one of the most common reasons goals are never reached.
Step 5: Write Down Your Goal, Deadline and Plan
Combine everything from the first four steps into one short written statement: the amount, the deadline, what you will give in return, and your plan. Keep it to a few sentences so you can read it quickly.
Step 6: Read Your Statement Twice a Day
Hill recommends reading the statement aloud twice daily, once just after waking up and once before going to sleep. While reading, imagine already having reached the goal and feel the satisfaction of it. This keeps the goal at the front of your mind and strengthens your commitment.
Example: A Written Statement You Can Adapt
Here is an example of a statement that follows all six steps. Change the amount, date and plan to fit your own situation:
By 31 December 2027, I will have saved ₹5,00,000. In return, I will improve my networking skills, complete one professional certification, and take on freelance configuration projects every month. I will save ₹21,000 from my income each month and invest it regularly. I start today by enrolling in my certification course.
What Modern Research Says
Some parts of Hill’s formula are well supported by modern psychology, while others need a little balance:
- Specific goals and deadlines work. Decades of research on goal-setting, especially by Edwin Locke and Gary Latham, show that specific, challenging goals usually lead to better results than vague goals such as “do your best”. Steps 1, 3 and 5 match this closely.
- Planning and starting early help. Turning a goal into concrete actions, and deciding when and where you will do them, makes people much more likely to follow through. This supports Step 4.
- Visualisation works best alongside realism. Studies by psychologist Gabriele Oettingen suggest that only daydreaming about success can reduce effort. Her approach, called mental contrasting, recommends picturing the goal and then thinking honestly about the obstacles and how you will handle them. When you do Step 6, add a moment to plan for what could get in your way.
Common Mistakes to Avoid
- Skipping Step 2. A money goal without a clear way of creating value is just a wish.
- Choosing an unrealistic deadline. A deadline that is far too short can lead to frustration and risky decisions. Stretch yourself, but stay grounded.
- Only visualising. Picturing success is meant to support action, not replace it.
- Letting money take over everything. Hill talks about a “burning desire”, but health, relationships and ethics matter too. Pursue your goal in a way you will be proud of.
Frequently Asked Questions
What are the six steps to riches in Think and Grow Rich?
Decide the exact amount of money you want, decide what you will give in return, set a deadline, create a plan and start at once, write all of this down in one statement, and read the statement aloud twice a day while picturing yourself already having the money.
Does the six-step formula really work?
The formula does not create money by itself. Its value is in giving you a clear, written goal and a plan, which research shows improves focus and follow-through. Results still depend on the effort, skills and value you put in.
How often should I read my money goal?
Hill recommends twice a day: after waking up and before going to sleep.
Want to build wealth through investing as well? Read Graham’s 7 Must-Know Rules for Picking Winning Stocks and our summary of The Intelligent Investor. You may also like How To Get The Exact Position You Desire.
You can buy Think and Grow Rich on Amazon.
Disclaimer: This article is for educational purposes only and is not professional financial, medical, or legal advice. It may contain affiliate links, which earn us a small commission at no extra cost to you. See our Disclaimer and Affiliate Disclosure.
Article ID: EA00193