The fastest way to build wealth is to challenge what you’ve most likely been led to believe and then take the necessary actions to start you on a new path.
Consider the standard way of thinking:
- Go to college
- Get an 8 to 5 job
- Save for retirement
- Take a few years to actually enjoy your life
- Then you die
What has holding onto this belief ever gotten any of us?
Consider a new path that’s going to give you a more rewarding life:
- Start a business in a field you love so much, you’ll never want to retire
- Become a leader and expert in your industry so you earn top dollar
- Choose stable investments that give solid returns and let your net worth naturally snowball
- Buck the trend to spend, spend, spend (more “stuff” just means more time and money wasted)
Who wants to wait twenty years to significantly increase their net worth? Or go to a job they hate everyday to do it? The fastest way to build wealth is to go against the herd.
Most people spend their lives working for other people, buy a bunch of crap they don’t need and never learn how to properly invest. If you want to increase your net worth at a rapid rate, you have to have the courage to take the road less traveled.
Step 1: Launch Your Own Business
It’s possible to get wealthy by working for someone else. You can rise through the ranks of a big company and become a CEO that is compensated very well or be a surgeons who works for a hospital. But that can take many, many years of hard work.
If you want to become wealthier more quickly, starting your business is the way to go. While it can take years to build a business, if you pick the right field and do it right, you could completely change your financial situation in a few years. (There are even entrepreneurs out there who have done it in as little as a few months.)
Most careers that involve being an employee just aren’t as lucrative as being your own boss. About half of all millionaires in the US are business owners. No other career provides that high percentage of wealth-building results. Plus, when you own your own business, there’s no cap on what you can earn per year.
If you currently have an 8 to 5 job and are worried about how you could possibly start a business while working full-time, don’t. You can always start very small by working as a part-time freelancer or doing something like opening an Amazon seller account and selling a few items online.
Also, starting small usually means low start-up costs, too. You can learn more about how to start a business with my article How to Launch Your Dream Business.
But don’t open a business just to chase money. You will end up unhappy, even bitter. When it comes your career, you want to love what you do, too. You must love it enough to want to do it day after day. Potential customers can tell if you love what you do and they’re more likely to buy from you when you do. This will affect your bottom line in the long run.
Whether you already own a business or are thinking of starting one, here are some tips that can help make any business successful:
- What problem are you solving? The most successful businesses help other people solve a problem in the best way possible. This can be a service, product or both.
- Who has this problem? Homeowners? Men between the ages of 30 and 50? People who are overweight? Dog owners? Write out a profile of the type of people who could use your help.
- How can you reach your target audience using the least amount of money possible?
- What’s your company’s mission statement? What does it stand for?
- What image do you wan to project to your target audience?
What can you do to keep learning as a business owner so that you can continue to improve? This can mean attending workshops, watching YouTube videos, reading books, taking courses…The best business owners never stop learning and tweaking their businesses accordingly.
One further tip I can give you if you’re afraid of getting started: Don’t worry about perfection. You’ll improve as you go. Just focus on getting started. Try getting good at one thing and set goal each week that will help you grow your business.
For example, in the very beginning stages of this blog, my goal was just to write one article a week and make small tweaks to the layout of the blog. I didn’t worry about marketing or making my articles or layout perfect. I just kept writing and making small improvements. As the blog progressed, I got better and faster at writing and the layout of the blog improved, too.
The important thing is that I got started. I could have over-analyzed it to death and never started at all. But I chose to take action instead and learned more and more as I went.
You can’t succeed if you never try and if you never try, you’re diminishing your chances of accelerating your net worth.
Step 2: Become a Leader and Expert In Your Industry
You can make good—even great—money by owning a business and focusing on excellent marketing and customer service. But you can make even more money by becoming a leader and expert in your industry.
Let me illustrate with an example: Who makes more money? The doctor who is a general practitioner or the specialist? And who makes more money, the unknown specialist or a very well-known specialist such as Dr Oz?
I talk about how you can become a an expert in your industry in my article 5 Steps to a More Exciting and Lucrative Career. But in the meantime, here are some tips on how to establish yourself as a leader and expert in the industry of your choice:
- publish your own blog and/or ebooks
- submit articles to industry journals and websites
- give speeches and seminars
- create YouTube videos
- create courses
- leave comments on other people’s blogs and videos
- collaborate with other experts in your field
- network with other industry leaders (via online and in person)
- stay up-to-date and never stop learning
- get additional certifications if needed
By staying proactive and reaching out to others in your field, you will eventually become well-know in your field. I highly recommend doing this, even if you only do it at the local level or choose to do just two or three things from that list.
Leaders and experts always make more money than others who have similar backgrounds and qualifications because they can both command more money and make money off the blogs, videos, courses etc that they create. (Why do you think I started this blog?) This is a much faster path to wealth.
Step 3: Invest the Right Way
Do you have system in place that allows you to invest automatically? If you don’t, you should. Even if it’s $50 a month, you should always have a portion of your income going into safe but effective investment vehicles. As the saying goes, poor people save; rich people invest.
Two of my favorite investment choices are high-yielding savings accounts that have an APR of at least 2% and stable, dividend-paying stocks like Verizon and Universal Corp. Then you can take what you earn and reinvest it so that you earn even more.
When it comes to growing your money, you have to play the percentages and invest for the long term. If you keep 50K in an account earning just 1% for two years versus an account that earns 5% over a long period of time, such as 20 years, you will end up with much less money.
And while 20 years isn’t “fast,” it’s much faster than not investing at all thanks to compound interest. For more on this, read my article Compound Interest and Passive Income: A Simple Explanation That Will Transform Your Financial Future.
Still want to know more about my philosophy on investing? Then check out my articles The Financial Freedom Formula: 4 Steps to Guarantee Success and Why Everyone Should Own Dividend Stocks (A Simple Guide).
Step 4: Cut Way Back On Spending
We Americans like to buy. And buy. And then buy some more. I’ve been guilty of this myself to some degree.
I’m getting ready to move across the country. The move prompted me to go through all of my belongings and decide—in a rather cutthroat fashion—if I was going to keep an item. Despite not being a big spender, I was still amazed at how much I owned! What’s sad is that I realized I didn’t need most of it. I’ve donated a lot of it and have made a vow to live a leaner life in the future.
How much stuff do you really need? Look around you and think about all the money you’ve spent on “stuff”. It’s not just about the amount you spent on that item. It’s also the fact that you could have taken that money and invested it to turn it into more money.
I promote on this blog about thinking it through before you buy something. No, that doesn’t mean you have to agonize for hours before buying a cookie. It just means we don’t need ten candles, a hundred toys for the kids, five iPads, three cars, fifty pairs of shoes…The level of over-consumption in this country is crazy!
One of the most common mistakes is buying a home that’s bigger than what’s needed and filling it with so much stuff that it’s essentially turned into a storage unit. Plus, the larger the home, the more you have to insure, manage, heat and cool, and the more you’ll pay in interest on the mortgage. Unless you’re already a millionaire, consider downsizing.
Also consider renting instead. It’s a myth to think that owning a home is a good investment. Considering the hefty down payment, closing costs, insurance, taxes and maintenance costs—not to mention all the time wasted on maintaining it—it can actually be a liability rather than an asset. I discuss this in greater detail in my article The Myths of Home Ownership (and How Renting Makes Life Easier).
We have to stop buying just for the sake of it and be pickier about what we spend our money on. We also have to stop believing that more means more because sometimes, it actually means less—less time, less money, less freedom.
The Path Less Traveled
Most people don’t realize it but the traditional path is like climbing Mt Everest—arduous, long and exhausting. But you can choose a different path by changing your mindset and behavior.
Your path doesn’t have to be Mt Everest; it can be like a stroll on the beach or a walk through the park on a crisp, spring day. It can be both exciting and more rewarding financially.
If you take all four of these actions, and not just one or two, you can see your net worth explode. Plus, if you start a more rewarding career, you’ll just be happier regardless of whether or not you end up with more money.
But none of this advice matters if you don’t follow it up with regular, consistent action. If you take a step or two each day toward your new goals, you’ll be there before you know it–plus you’ll enjoy the journey much more.
I urge you not to hesitate. Your new future awaits. Put fear aside and make it happen.:)