A question “How to Get Rich” and hundreds of answers that you can find on the internet. We tend to assume that if we work hard and save money, we will one day be rich. This is an illusion. It is more likely that we will end up with some modest but useful savings.
If you want to accumulate great wealth, there are various approaches you can use and some are much more effective than others. The most effective yet efficient way to get rich is as follows:
How to get rich: 8 smartest ways
1. Start your own business and finally sell it
This is the most effective and proven way to get rich. If you can find a new approach to a real customer need and create a profitable business that meets that need, you’ve created real value.
It can be a cleaning, hairdressing, consulting or investment banking business. It will probably take years of hard work to build the company.
The majority new businesses failSo the stakes are high. You need all the skills, dynamism, perseverance and diligence of an entrepreneur.
But if you do, the potential rewards are huge. Many of the seriously rich people did.
2. Join a new company and get shares
If you can build up equity positions in one or more new companies, there is an opportunity for a large capital gain if the company prospers and falters or is sold to a larger company.
Only a small minority of startups can make big capital gains, so the odds are not good. However, you can use their criteria to see which business idea and management team are likely to succeed.
The early employees of Apple, Google and Microsoft became millionaires on that basis.
3. Explore your ability as an independent expert
If you can develop a marketable skill and maintain your independence, you can reap considerable rewards. This is how sports stars, authors and artists get rich.
In general, the self-employed expert has greater opportunities to obtain profits than the one who works for a company. There are risks and you need to have something special.
Your success is in your own hands, so this is a popular route for people who have developed a skill and want to achieve their own.
4. Develop property
Buying, developing and selling real estate is a well-established way of building a significant capital position. One of the key elements is that by borrowing money, you can enjoy your investment.
Let’s say you borrow $200,000 and invest $50,000 to buy a property for $250,000. You then develop the property and sell it for $400,000. The value of the property has increased by 60%, but it is $50,000 now it has increased four times to $200,000.
You must select the right properties in the right areas and develop them wisely. You risk booms and busts in the real estate market. However, in the long term, it is still a proven way to accumulate wealth.
5. Create a portfolio of stocks and shares
If you can make stable investments in stocks for a long time and reinvest dividends, you can create a large pool of wealth. Of course, stocks can fall as much as they rise, and many small investors get discouraged when the portfolio falls.
But in the long run, stocks are just as good an investment as property and much more liquid. Stock market crashes present great buying opportunities for those with money and strong nerves.
6. Inherit wealth.
It helps if you were born to rich or successful parents, but if not, you can luckily get married!
7. Work in a stable job, reduce expenses and save in the bank
This is a prudent practice and reduces your financial risk, but it is not an effective way to get rich. You must keep your expenses within your income, but if you want to earn a lot of money, you must significantly increase your income or find ways to multiply your capital. Review some of the ideas above.
We hear about lottery winners and poker stars, so this approach can sometimes work, but the numbers are so unfavorable that they represent a bad scheme to get rich. It is recommended to avoid this method and use one of the first six above.
There are more important things in life than accumulating wealth. Who wants to end up rich, loveless, lonely and in poor health? However, if you can enjoy life and get rich at the same time, why not? Plan your route and enjoy the trip!