01/01/2022
How to get rich quick: Three ways it won’t happen and three ways it can.
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The biggest issue people face when figuring out how to get rich quick is the lack of trust in certain plans or opportunities. Which is why Express.co.uk compiled three ways of getting rich that are more likely to fail, and some that are known to succeed.
Getting rich is the dream for many, yet few have ever considered how they plan to do it and the most well known ways to do so are often the ways that fail.
How not to get rich
Lottery
Many people play the lottery as a way of letting fate decide whether they should be rich, but trusting luck with one’s financial freedom is never a good idea.
Financial expert Tom Corley has dubbed this mentality as “lottery mindset” and noted that those who place all of their efforts into complete acts of chance are more likely to take uneducated risks with their money.
The odds of winning the Euromillions is one in 139,838,160 and whilst some may still see that as a chance, those that actually want to get rich are advised to stick with methods that they are in control of.
Multi-level marketing company
One of the most well known ways to not get rich, multi-level marketing companies often boast themselves as an easy way to make money with the tagline of “Be your own boss”.
These companies generally target those that are house-bound such as stay at home parents, and while they may make a lot of promises that one can get rich by becoming a distributor, it’s not something everyone will experience.
MLM’s will ask their new “distributors” to purchase company inventory upfront to sell, making a commission on each order.
However, the real way to make any type of liveable income through MLMs is by recruiting other distributors, creating a distribution network so large that distributors end up buying enough inventory to keep the company running without selling anything.
Day trading
This volatile and risky form of investing often associated with the foreign exchange and stock market.
Day traders will generally purchase and sell a stock within the same day, and sometimes multiple times during that time.
It requires intense knowledge and capital and is incredibly risky.
Ultimately, even if one were to be one of the few cases were these methods were to get them rich, they are likely to lose the millions as quickly as they make them without true money management skills.
This has often been explained by the fact that getting rich quick often doesn’t have the same enjoyment behind spending that money as earning it would have provided.
Many finance experts recommend three simple steps to actually getting rich, although it won’t be overnight, and how to keep the money for as long as possible as well.
Make more
In simple terms, the most reasonable way to get more money is to make it. This can through a variety of methods such as getting a raise, a part-time job or creating a side business or side hustle.
Invest in education
One of Warren Buffett’s most well-known pieces of advice is to invest in oneself through education and self-improvement.
Developing one’s knowledge does not happen overnight but like good investments, it can pay off greatly over time by creating more opportunities and a chance for higher salaries further down the road.
More importantly, it is advised that before endeavouring to make millions, one should educate themselves on money management and personal finance.
Create a financial plan
By learning and truly understanding the principles of money management and personal finance, one can better create a financial plan.
This financial plan can often be the deciding factor on whether one can continue to build their wealth or blow through it faster than they make it.
The most important factors of a financial plan are suggested to be: building emergency savings, paying off all debts and investing where possible.
