f you’re trying to figure out how to become a millionaire, you probably have the idea that it involves getting a high-paying job, investing wisely, and living frugally.
Those are all great things to do if you want to get rich, but the problem is most people looking to get rich don’t know precisely how. Most people think that getting rich involves:
- Having the best job possible.
- Investing in stocks or real estate.
- Waiting for your investments to grow over time.
However, for most people who work hard and invest wisely, getting rich isn’t as easy as that sounds. Statistics show that most millionaires didn’t get there by following the guidelines above.
How Do Most Millionaires Get Rich?
Most millionaires get rich through their efforts, with 68% of those with a net worth of $30 million or more being self-made. Real estate is also a popular route to wealth, with some sources claiming 80% of millionaires made their money in this way. Typical paths to wealth include energy and media/entertainment. On average, millionaires are 61 years old and have $3.05 million in assets. However, only 1% of self-made millionaires got rich before age 40.
Most millionaires are self-made and do not inherit their wealth. A 2019 study by Wealth-X found that around 68% of those with a net worth of $30 million or more made it through their efforts. A second study by Fidelity Investments found that 88% of all millionaires are self-made. Real estate is one of the most common paths to wealth, with 80% of millionaires making their money through real estate investments. Other factors that contribute to becoming a millionaire include ambition, the value of time, not being afraid of failure, and knowing when to ask the experts for help. The key for most millionaires is to save money before spending it, usually on stocks, bonds, and other investments. The average millionaire is 61 years old with $3.05 million in assets, and only 1% got rich before age 40. Self-made millionaires are dedicated thinkers who take on particular tasks and opportunities and invest in themselves.
Building a Wealth Mindset: The Ultimate Guide
#1 – Become an expert in something valuable.
One of the most common ways that millionaires get rich is by becoming experts in something valuable.
Whether by inventing a new technology or creating a new system for industry, experts in their field often have a high value because of the time and expertise it took to become an expert.
And when something has a high value, it’s more likely that people will want to pay for it.
This is why many successful entrepreneurs launch businesses in industries with expertise.
For example, if you’re an expert in the health industry, you may want to start a health and wellness business.
Or, if you’re an expert in the marketing industry, you may want to create a digital marketing company.
Becoming an expert in something valuable is one of the best ways to get rich because people are willing to pay a lot for expert advice or products.
Here are services that will help you get started in digital marketing.
#2 – Own a business or franchise.
Another common way that millionaires get rich is by owning a business or a franchise.
Statistics show that most millionaires got rich by owning their businesses.
One reason owning your own business is a great way to get rich is that the overhead to get started is often relatively low.
Depending on your industry, you may not need much capital to get your business up and running.
Another reason owning your own business is an excellent way to get rich is that you get to keep the majority of the profits from your company.
In contrast, when you work for someone else, you only get a portion of the profits from your work. And if you’re working for yourself, you get to keep your business’s profits.
So owning your own business or franchise is one of the best ways to get rich because you get to keep most of the profits from your work, and you don’t have to answer to a boss.
Here are services that will help you with your business plan or even help you franchise your business.
#3 – Smart investing.
Another way that millionaires get rich is by being intelligent investors.
While most people think that getting rich is as easy as investing in stocks or real estate and waiting for it to grow, that’s rarely how people who get rich do it.
Instead, the people who get rich by investing take calculated risks and invest in industries they know a lot about.
Check out the 13 best books on the stock market for beginners.
For example, if you’re an expert in the food industry or healthcare, you may want to invest in related stocks. You may want to invest in technology companies if you’re an expert in the technology industry.
Or, if you’re an expert in the real estate industry, you may want to invest in real estate properties.
Investing in sectors you have expertise in is one of the best ways to get rich because you’re likely to make better investments because you know the industry better than most.
Investing in companies with promising growth is another way that millionaires get rich.
If you’re an expert in the technology industry, you may want to invest in technology companies like Microsoft.
And if you’re an expert in the real estate industry, you may want to invest in real estate properties such as a house or apartment building.
Investing in companies with promising growth allows you to earn wealth while they grow and gives them time to raise so that they can pay off your investment sooner rather than later.
The best way to get rich is by investing wisely and doing what it takes to succeed at investing.
There are many different ways that self-made millionaires get rich.
Still, most didn’t do anything special except be savvy investors who took calculated risks by investing their money into industries they knew about and with excellent growth potential.
The people who get rich by investing take calculated risks and invest their money into industries they know about and industries with great potential for change.
Because they have done their research on those industries beforehand, they understand how those businesses operate before they make investments in them because they know how those businesses use them before they invest them.
Investing in companies is a great way to get rich because you can sell your stock shares, real estate properties, or stocks you purchase after a few years to earn money from your investments.
The sooner you sell your stock shares, the more money you’ll make from selling them, and the more you make from selling them.
The more money will allow you to invest in other companies so that you can continue to get rich because of all the extra cash sitting around.
Here are a few services and experts you may find helpful in investing.
#4 – An inheritance or family wealth.
How Do Most Millionaires Get Rich? Another way that millionaires get rich is by inheriting money from a family member or receiving money from a trust fund.
Now, this isn’t something you can plan for or work toward, but it’s an integral part of the story.
Statistics show that most millionaires got rich because they had money.
But how does this work exactly? Well, some of the wealthiest families in the world have been passing down money and business interests to the next generation for years.
So if your family has a lot of money, you may want to get in on that and get a portion of that money.
Plus, if you don’t have a lot of money, you can still get into this by searching for money owed to you.
For example, you may have unclaimed inheritance money if you were adopted. Or, if you have parents still alive, they may have a trust fund waiting for you.
#5 – Have a support system and know you’re why.
How Do Most Millionaires Get Rich? Another way that millionaires get rich is by having a support system. And by a support system, we don’t just mean friends and family members.
Instead, we represent mentors, coaches, and like-minded individuals who will help you get where you want to go.
Having a support system is one of the best ways to get rich because it will guide you through your journey and help you make better decisions than you would on your own.
A support system also enables you to stay accountable to your goals and helps you avoid bad habits that may derail your journey to get rich.
Another way that millionaires get rich is by knowing they are why. Many people who reach the top of their industry know precisely why they do what they do.
For example, a doctor may want to help sick patients get better, or a chef may want to feed hungry guests delicious meals. Knowing you are why is one of the best ways to stay motivated, work hard, and get rich because it will help you push through the adversity and tough times that will come your way.
#6 – Real Estate Investment.
Another way that millionaires get rich is by investing in real estate. Real estate is one of the best ways to get rich because it often has low upfront costs and can be a great source of passive income.
For example, you could invest in rental real estate or even buy a piece of land, build a house, and rent it out.
Real estate is one of the best ways to get rich because the returns can be very high, and the risk is low.
That’s because real estate has a low default rate and is often a positive cash flow investment.
So if you want to get rich by investing in real estate, you may want to start by getting into a real estate investing course or book.
Do you want to learn more about “Real Estate Investments”
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#7 – Have an ultimate goal.
Another critical element for those who want to become wealthy has an ultimate goal or endgame for their journey toward getting rich.
When millionaires set goals for themselves, they know exactly where they want to be at the end of their trip, so they can keep working toward this finish line all along the way.
For example, many people who make it big end up starting their own companies because they know that this will give them more freedom than working for someone else would allow them.
And once they reach this point in their journey, they are often more motivated than ever because they would have no idea where to go next without a specific goal in mind.
Having a particular finish line that you want to reach is one of the best ways to get rich because it will help you stay motivated to work hard and push through the tough times that will come your way.
#8 – Have a solid plan.
How Do Most Millionaires Get Rich? Another critical element for those who want to become wealthy is having a solid plan for how they will get there in the first place.
Many people who make it big start by making big mistakes and learning from them along the way, but others make all of their mistakes early on in life and learn from them before they even start.
For example, many successful people know exactly what they’re going to do when they graduate college—they’re going straight into the workforce.
And if this route doesn’t work out for them, they know exactly what their next step is—graduate school.
Other millionaires have other plans—they start by working in a job-related field to have experience before launching into something else entirely.
Whatever plan you choose, make sure that it’s well thought out and something that you can stick with until you reach your ultimate goal or endgame without a solid plan. You won’t be able to get very far in your journey toward getting rich because you’ll always be moving around aimlessly instead of moving forward with purpose.
Final Thoughts on How Do Most Millionaires Get Rich?
The most common way that millionaires got rich was by owning their businesses or investing in real estate.
Another way that some people get rich is by becoming experts in something valuable that people are willing to pay for.
And another way that millionaires get rich is by having a support system and knowing they are why.
So if you’re trying to figure out how to become a millionaire, these are some of the best ways to get rich.
Do you want to learn more about “How Do Most Millionaires Get Rich?” Check out Building a Wealth Mindset: The Ultimate Guide.
James is the editor-in-chief at wealthmindsetschool.com. James is a workaholic and an entrepreneur who has been in the tech industry for over ten years. He has worked with Microsoft, owns multiple websites, and now owns a mattress shop. Furthermore, when he has time left over, he will be in his woodworking shop building furniture as a side hustle. James has a B.S. in Business Management Information Systems and a Master’s in Business Administration from Liberty University. He is currently pursuing a Master’s in Executive Leadership, and once he completes that, he will pursue his Ph.D. in Business Administration – Entrepreneurship. James also seeks investment opportunities, putting his money to work instead of himself. James is an active believer that wealth begins with developing a wealth mindset. He now teaches, instructs, and helps others achieve that goal.