Note that people have different perceptions of what it means to be rich. In this article we will define rich as having a fortune higher than $1 million.
Start by investing in your most important asset: Your mind
- Doing well in school and getting an education in a high-paying profession such as doctor, lawyer, economist, etc. will give you a head-start and a safe economic position.
- Learn about basic economics such as Compound interest and investment strategies.
- Develop yourself all your life. Increase your professional skills, leadership skills, financial skills, social skills and general life skills. Making yourself valuable will increase your chances regardless of your path to riches.
- Develop a vision; why should you become wealthy? Based on this, set your goals. You wont rise up unless you are able to build and focus your ambition.
- Start investing as early as possible. Do not wait until you have "enough" money to invest. You will end up with a larger account in the end if you start investing a small amount early and keep adding more regularly.
- Make smart investments
If you don't understand what you are investing in, don't. Start with something easy like index funds. They have fewer ups and downs than individual stocks, and you will not have all your eggs in one basket.
- For safety: Stay as debt free as possible. A paid-for education and a paid-off house will enable you to invest more money in the stock market or your own business. Only gear up low-risk investments with loans.
- Starting now is better than never starting. The power of compound interest can make anyone wealthy. Example: Investing only $10 every year at 15 % annual profit will give you over $1,3 million after 70 years.
Start your own business
- It is always better to be an employer than an employee, if you are disciplined and able to devote time and money. Learn all you can about running a business. Take a class. Ask an experienced business owner for advice. Be careful, though. Many businesses fail, especially in their first year. You could end up with considerable debt, no savings, and no benefits. Get help!
- Entrepeneurs make up the majority of millionaires, it is high risk, but it is also the most likely way to become truly wealthy. Few people amass great wealth through other means. Less than 1 % become a millionaire through "other" means such as being a rockstar, winning the lottery, etc. So unless you inherit wealth your best shot is doing this.
- Note that you can start your own business part-time. For example by going into real estate, purchasing, renovating and selling homes is a commong way for building wealth for people without money to invest.
- Learn about budgeting, credit, and debt. Learn how credit cards work! If you get into debt early it can sabotage your progress.
- Put an amount of money in the bank monthly. 10, 20, 30 dollars is good - $100 is better. By the time you get old, retirement would be easy. (See segment about compound interest).
- If you are in college and can't afford an apartment and don't like those nasty dorms, then gather with 3 or 4 people, and buy a good sized house while splitting the payment. It'd probably cost less than a apartment.
Extremely high risk/dubious morality: not covered in this article
- Importing drugs
- Seducing a rich person with the hopes of marrying into wealth
On the other hand, there haven't been covered any specific ways in this article.