Almost everyone in the world wants to get rich. However, only a small percentage of the population is actually considered “wealthy” while the overwhelming majority of the population is simply middle-class or lower. There are a few reasons why this is, but the main reason is that wealthy people understand the rules of making money. Luckily, these rules can be easily copied.
Let’s take a few of the moves that, if implemented correctly, can help guarantee that your wealth will increase.
How do you actually get rich?
Most people associate being rich with earning a high income. When asked what the best way to get rich is, they will look at high-earning professions like doctors and lawyers (where the average salary is comfortably into six figures) and assume that entering one of these careers is the best way to get rich. However, if you ever glance at any of the Forbes Richest lists, then you’ll notice that this is very far from the truth.
These lists never include doctors, lawyers, or other professionals that people associate with being rich.
Instead, the Forbes Richest list is composed almost entirely of entrepreneurs and investors. This is because entrepreneurs and investors are able to do something that no other profession is able to do. They are able to separate their earning potential from their time.
For example, the source of Jeff Bezo’s wealth does not come from his Amazon salary. Instead, it comes from the stock that he owns in Amazon (among other things) which is constantly fluctuating. If the price of Amazon stock rallies 100% over the course of the year, then Jeff Bezos will suddenly find himself twice as rich as he was last year. Not other profession is able to enter their end of year meeting and receive a raise that doubles their existing salary.
Unfortunately, there’s only one Jeff Bezos in the world. However, that doesn’t mean that you can’t still get rich using the same strategy.
Let’s take a look at few of the money moves you can make that almost guarantee wealth.
Start a business
Even if it doesn’t grow into the next Amazon, starting your own business is one of the best ways to improve your own wealth. That’s because, when you own your own business, your income is determined by the number of products that you can sell instead of an hourly or yearly rate. When you’re an employee, you will most likely only make $15-$20 per hour that you work. However, when you’re the business owner there is no limit to the amount that you can earn.
For example, let’s say that you start selling a product that nets you $20 in profit. From here, it’s easy to break down the number of products you need to sell each month in order to reach your desired income goal:
- 100 products x $20 profit per product = $2000/month
- 1,000 products x $20 profit per product = $20,000/month
- 10,000 products x $20 profit per product = $200,000/month
When you’re first starting out you might only sell 100 products and earn $2,000 in profit for the month, which is probably less than you’d earn as an employee. However, after you’ve been in business for years and built up a reputation then you could potentially start selling 10,000 products per month. This skyrockets your monthly income up to $200,000, which would make even the highest-paid lawyer jealous.
If starting a business sounds too intimidating, there’s still another strategy you can use to become wealthy.
Invest your money
Investing your money is the other main strategy for building wealth and, luckily, it’s much easier than starting a business. The key to investing your money is to buy assets (like stocks, bonds, or real estate) that will grow in value over the years.
You will most likely never own the same number of shares in Amazon that Jeff Bezos does, but that doesn’t mean you can’t profit from the increase in Amazon’s stock price. For example, if you invested $10,000 in Amazon in 2015 then your investment would have grown by over 1,000% over the following 5 years. You would have turned $10,000 into $100,000 simply by buying Amazon stock.
Doing this successfully over the course of years is another strategy for building your own wealth.
We hope that you’ve found this article valuable when it comes to learning a few of the moves that will guarantee wealth. If you are interested in reading more, please subscribe below to get alerted of new articles as we write them!