"It's possible to begin with nothing and acquire wealth."
I've been looking into this comment, and it is still possible for ordinary, unconnected, wage-earning Americans to become wealthy. And I believe it can be done in 10 years or less.
Consider this: According to the Boston Consulting Group, there were 17 million millionaires in 2014, up from 15 million in 2013. Fortune predicts that 1,700 people will become millionaires each day into the 2020s.
Further, most millionaires are self-made and own their own businesses. And 80% of them continue to work, generating streams of income, even though they don't have to. Which is the goal I'm currently focusing on for myself.
This validates what me telling you that here at Sweat Nation we are constantly moving forward to help you create the life you want. If you are willing to put in the time and follow proven principles of wealth-building, you can become wealthy in a relatively short amount of time-even if you are broke or in debt right now.
I often read about the three basic ways to get rich:
Slowly (in 30 to 40 years) by cutting costs and saving
Quickly (overnight) by gambling and getting lucky
Surely (in ten years or less) by following other wealth builders who've done it time and time again....
How to Get Rich Slowly
The Millionaire Next Door, a best-selling book from 1996, surprised the reading public by revealing that the typical American millionaire doesn't acquire his wealth by starting a successful business or becoming a doctor or inventing something. The greatest number of Americans, the data indicate, acquire their fortunes by scrimping and saving.
Just about anyone can get rich this way. You simply put a reasonable percentage of your income into a very ordinary investment program for 30 or 40 years and, voila! You are rich!
You can start with the median income in America-$56,516 in 2015. Then, let's say you invest 10% of that income ($5,652) at a compounded return of 10.2% (the S&P 500's track record from 1915-2015). Over 30 years, you'll end up with $1,069,792.
This is due to the effectiveness of compound interest, but it is not in any serious way a miraculous feat. It is a certainty based on long-proven historical averages and simple math.
But there is a catch. You have to start relatively young.
If you start, for example, when you are 50, you will have only $206,712 accumulated by the time you are 65. If you start when you are 60, well… You get the picture.
Getting rich this way doesn't require guts or brains. All you need is a commitment to work hard to make enough money to save every month… and the discipline to keep it saving it till it grows into the million it can.
This method is recommended for anyone who is young enough to take advantage of time.
How to Get Rich Quickly
Acquiring wealth by scrimping and saving is a sure thing, but it does take a long, long time.
And even if we have the time, most of us don't have the patience for it. All other things being equal, we'd like our wealth served to us on a silver platter… by tomorrow morning. Right?
Getting rich quickly — the ultimate financial aphrodisiac. Is it possible?
The answer: yes, but only if you are very, very lucky.
We read and hear about it all the time. A chicken farmer in Idaho discovers a Rembrandt in his barn. A barber in New Hampshire hits the state lotto. Your cousin's best friend's uncle hit the jackpot in a Vegas casino.
And the one I like best-your taxi driver's last fare made a million bucks last month by investing $5,000 in a pink sheet stock, and he has the name of the company!
Those are the stories. Here are the facts:
Your odds of winning a typical state lottery are 14-million-to-1. Your odds of winning a million-dollar jackpot at a craps table are more than 2-million-to-1. Your odds of finding a Rembrandt in your garage are who knows!! And your odds of turning $5,000 into $1 million quickly with stocks are just as slim. I should know. I would have tried that by now.
These are long, long odds. And although I have no objection to gambling as a form of entertainment, I don't gamble much because I know there are many other ways of entertaining myself that are less addictive and less costly.
How to Get Rich Surely (And a story of someone who made a million on the lottery)
The strategy I've observed that is faster and more fun than scrimping and saving and much, much more likely to work than any sort of get-rich-quick scheme.
I'd like to illustrate a strategy by telling you about an experience I came across that does deal with with state lotteries. It so happens that the protagonist of this story Mark did once make more than a million dollars on the lottery, but he didn't do it by buying a single ticket.
Here's the story: In the 1980s, He was a junior partner in a publishing company that put out all sorts of magazines, books, and newsletters. One year, his partner had an idea. They could publish a magazine on state lotteries. They called it, “Lottery!” It featured stories of lottery winners and essays by crazy professors with theories about how to reduce the odds. What an idea, right?
It was, for several years, a great success. At one time the publication had 100,000 subscribers paying $39 per year. You can do the math.
It didn't happen overnight. It took several years and thousands of man-hours to make it work. It was the result of a good idea, lots of specific (in this case, publishing) experience, and lots of hard work. And perhaps a touch of luck.
This is how I've observed someone can get rich surely. You work hard and smart to earn good money, and you put a large percentage of that money aside to build a business, acquire property, and invest in smart and safe opportunities when they arrive.
You don't sit around dreaming and throw what little money you have at some irresistible idea.
This is the way the great industrialists made their fortunes 100-plus years ago in America. And it is the way most entrepreneurs and some professionals make their money today. (It is also the way bankers and brokers and insurance agents used to make their money, too, before they were able to collude with the government and go into the business of getting rich by taking advantage of their customers.)
At Sweat Nation, we don't believe in gambling is the way to wealth. We do believe in cost cutting and saving, but only for the young. For the rest of us, our path is getting rich surely the old-fashioned way: by working harder than those who complain, by saving more, and by investing that extra savings in businesses, real property, and safe investments… and sticking to it.
We're teaching ourselves and others how to do it. We know it works.
There are just two thoughts to getting rich surely:
You can't do it overnight. It will take some number of years.
It's not a 100% sure thing, as it is with cost cutting and saving.
How many years does it take to get rich by earning and investing?
Short answer: one to ten years — probably closer to ten.
When I listen to podcasts like Radical Personal Finance or Blogs like Mr. Money Moustache who talk and write about to reach retirement through "badassity"!
Through many interviews with people who are developing wealth in one to ten years. I listen for the similarities.
Ultimately, I'm always searching for a common denominator. Kind of like in the nutrition world all diet strategies can agree that vegetables are a must.
As it turns out, these are the three ideas that are like eating vegetables.
Learned a financially valuable skill
Started a business by finding an up-trending market niche to apply their financially valued skill to
Spent considerably less than they made and saved the difference.
These are the only three things you need to know to get rich in ten years or fewer. You can do it on your own, without any help. Certainly without me telling you what to do.
But the purpose of coming together is to give you the tools and encouragement to learn all three and utilize these strategies effectively.
If you join us here at Sweat Nation, I wager you'll have a much higher chance of succeeding than going at it at on your own.
Here's to your wealth, not only monetarily, but in mind/body and relationships too!!
Track Of The Day - I wanna Be Rich - Calloway