If you’re on this blog, there’s no doubt you want to get rich.
Money provides us with options and a lot of money provides us with a lot more options.
If you study wealthy people, none of them got rich quick; it took many years of planning and strategizing.
But one thing wealthy people have in common is that the majority are diversified.
In this article I’m going to break down strategies wealthy people use to get and stay rich.
Welcome to Franknez.com – today, I want to talk about money and getting rich. I know many of you will gain loads of value from this article.
Let’s dive right into it!
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Financial literacy is the foundation
If you don’t yet know how to manage $1,000 then you won’t know how to manage $10,000 or $100,000; let alone $1M.
Financial literacy provides us with the proper foundation we need when learning how to manage money.
You don’t need to earn a lot of money to become financially literate.
You just need to understand what money is and how to let it go.
Many of us were taught to save money and hold on to it for our dear lives.
But money is meant to circulate.
The Latin meaning of currency means to flow, or ‘condition of flowing’.
Just don’t get this confused with spending because understanding the differences will be key to building wealth and getting rich.
Differences between spending money and utilizing money
You spend money on fuel, utilities, the rent or mortage.
You might occasionally spend money on a night out or if you’re treating yourself, on a new pair of Nike’s.
The rich keep their expenses low (in the beginning) and watch their spending.
They build very disciplined spending habits to allow them to utilize that money instead.
So, what are some examples of utilizing money?
The rich utilize their money by creating, buying, or leveraging assets that will produce income.
While you don’t need to earn a lot of money to understand how to manage it, building wealth will require you to find creative ways to substantially increase your income.
This means the rich must either provide some sort of value to society through a business or buy large enough assets that will accommodate to their goals.
When building wealth, money must be used to make more money.
I’m going to break down below the various ways the rich are making this happen for themselves and their families.
Different ways to get rich
There are currently more than 21.9 million millionaires in the U.S and1,700 Americans are joining the list every day.
There are a variety of ways the rich have gotten rich.
But these four have stood out the most in terms of building wealth over the long run and have been the most popular ways to getting rich.
Whether one speaks to you amongst the others, it’s important to note that self-made millionaire’s have created multiple streams of income and do not rely solely on just once source.
Many earn money from all four.
Let’s break them down together.
#1. Start a business
Business owners are the backbone of America.
There are currently more than 31.7 million small businesses in the U.S.
Business owners have the potential to earn an unlimited amount of money which is why starting a business is #1 on this list.
Being a business owner is challenging but it has its perks.
Not only do you get to use your creativity to solve problems for others, but you get to build something incredible from the ground up.
Businesses also provide you with a freedom a 9-5 will never provide.
Maybe you decide to start a business but want to get rich from rental properties.
And that’s 100% okay too.
#2. Get into real estate
Real estate is another big one on this list.
90% of the world’s millionaire’s created wealth through real estate according to studies.
There are really two main paths when it comes to real estate.
You either become a realtor or you invest in rental properties that will yield passive income while you build a real estate portfolio.
One is more of a sales career while the other invests in properties.
If you’re interested in a real estate career, you’ll want to eventually think about selling high ticket properties where the commissions are very high.
Otherwise, using the banks money to buy property and rent it will allow you to add rental property to your portfolio while the equity in your property increases.
The property will be paying for itself, making some profit depending on how much you rent the property for, or earning thousands per month in rental income if purchased with cash.
You may always refinance the property to put money down on a second property and keep building your portfolio.
#3. Invest in stocks
A million new millionaires were created in the stock market in 2021 alone according to CNBC.
This is going to be one of the slowest ways to build wealth.
However, a quicker way to speed up your stock investments is to sell high and wait to re-enter the market when stocks are low.
Depending on your investment strategy, you might opt in for dividend stock investing and just let your money accumulate long-term.
Traditional banks don’t yield any interest, and high yield savings account aren’t much better today.
Putting your money in an index fund such as the S&P 500 (SPY stock or VOO) may yield 8%-10% a year.
That’s an $8,000-$10,000 return on a $100,000 investment.
Your investment will compound over time as you continuously reinvest your dividends back into the index fund.
Billionaire and real estate mogul Manny Koshbin built his real estate empire after cashing in $300,000 from a stock market investment.
He took his investment from the stock market and purchased his very first rental property.
And the rest is history.
Have a strategy and keep multiplying your money.
#4. Provide value to the masses
This strategy to building wealth was limited prior to the internet.
Authors and booksellers sold a product to the masses and made millions in doing so.
Today we’re seeing YouTubers and popular websites provide value to the masses through entertainment and educational content.
Musicians and artists are also building wealth by reaching big audiences.
Well-known artists who’ve made a lot of money in the game also start businesses and invest in rental properties to grow their wealth.
The way to get rich and grow your wealth is to make money and multiply it by reinvesting gains and income in other assets that will yield more income.
Money has to be in motion at all times.
Building wealth takes time
Most millionaires became millionaires between the ages of 45 and 60 years old.
Sometimes people get in on a once in a lifetime investment play that takes off and makes people rich quick.
For some people it was Bitcoin that made them rich quick, or Ethereum, DOGE, SHIB, you name it.
This is why it’s important to stay diversified and plant your fishing lines in a variety of pools that will allow you to create wealth.
I would love to hear about which of these income streams most speaks to you.
Leave a comment below.