Should you get rich fast or slow? Does the rate in which you get rich matter or not? Good question but ultimately one chooses their own path.
I recommend both based off what I think and how I interpret it. In this article, I will explain the difference between getting rich fast and slow as well as the pros and cons.
Additionally, there are examples in the form of studies and data that show how people have become rich and I identify at what rate they did it in.
Sit back and enjoy this valuable read so you are able to take away information that helps you grow in your on personal pursuits. The article will discuss all of the following:
-Difference between getting Rich Fast and Slow
-Challenges when Building Wealth
-Choosing to Get Rich Fast or Slow with Data
Difference between getting Rich Fast and Slow
I think popular culture sees getting rich fast as a scam like “take this $1000 course and started making $1000 a day for life”.
Another good example is when people online say “turn this $50 into $500,000 in 5 months”.
So funny because I honestly have fell for some of those long time ago when I was really young but I have matured and started doing things differently.
I choose to and recommend to all to do both get rich fast and slow. By fast, I mean get rich not with get rich quick schemes but starting a side hustle or legitimate business.
This can speed up your time it takes to get rich. By get rich slow, I mean investing in paper assets over a long span of time and even real estate too.
In total, it would look like this, you have a business and stocks, bonds, mutual fund and any paper assets working for you to help get you richer.
If the business fails, we hope it doesn’t, you would still have your paper assets accumulating interest and increasing your wealth. If business succeeds you have both working for you to make you richer.
To understand money more it is important to know the Psychology of Money and how to use it to your advantage to grow wealthier.
If you’re looking to jump straight into the most effective ways to invest then by reading this article you can separate yourself from average investors.
Challenges when Building Wealth
My biggest concern is that you prepare your mind to accept wealth so when you do reach success you don’t blow the money on stupid things.
We have seen this in professional athletes and people with businesses that blow up suddenly and massive amounts of cash are being generated.
These successes if not careful people can squander the money and be back at zero or back to square one.
These people start buying liabilities like jewelry, cars, houses, etc and wonder where the money went. Don’t let this happen to you.
A rule of thumb after you reach success is to have continuous cash flow coming in that pays for you working to pay for the cost of your liabilities or expenses.
Have at least 3X or 3 times or more coming in without you working to cover your total cost of living.
Example, a luxurious car that you have to pay $2,000 a month for. Here, your cash flow should be a minimum of $6,000 a month.
This ensures liabilities like a car payment are covered even when you don’t work.
With the majority of people it is the exact opposite they buy these liabilities then lose their jobs or business and can’t pay for what they bought.
If you take money and wealth serious then you cannot afford to miss the big picture. By this I mean how to build wealth: The Complete Guide to Wealth creation.
Other readings include the basics of wealth.
Choosing to Get Rich Fast or Slow with Data
I get it everyone wants to be rich as fast as possible so that why I recommend investing in paper assets over the long term coupled with a side hustle or business to speed up the process of getting rich.
Lets look at the data on millionaires and the different paths to get rich. This study found, the dreamer path, that 28% get rich or become millionaires the fastest way by being a dreamer and entrepreneur.
Average net worth around $7.4 million and took around 12 years to accumulate. The richest young people today start companies and build businesses.
Company climbers path would take a long time and would be considered slow in terms of getting rich. These people work themselves up to high salaries and hold and invest the money carefully and in a conservative manner.
Virtuous path are people with a advanced degree or specialization like lawyers, doctors and engineers. They work and earn high incomes. This path can be fast or slow based on how the person is using their money.
The savers-investors path is saving and investing income and this is either fast or slow in terms of getting rich.
This is based on how much the person earns and how aggressive they are saving and investing money.
Other information shows who makes up millionaires from the largest group to the smallest. Millionaire breakdown: (1) Business Owners/Entrepreneurs (2) CEOs/Executives (3) High Paid Professionals like lawyers, doctors, etc (4) Highly skilled Sales people (5) Others like rockstars, lottery winners, actors and people who inherited the money.
Other data includes this: Many millionaires are coming from the U.S.A. So stop complaining and find a way to make a million dollars and live your dreams. If you set it as a goal it will happen but you must work with high intensity and extreme focus to increase your income then aggressively invest it.
Source: Credit Suisse Research Institute
For a big start on building the life you desire read these books and apply the practical lessons to your financial life.
If you’re not sure how to budget and invest or if you should hire a financial advisor then check out this source to help you make a decision.
Next steps:
- Decide if you want to get rich fast or slow or both?
- Gain more specialized knowledge: read 1 hour a day on tactics to become millionaire and don’t forget ongoing learning and personal development forever
- Make a specific plan and put it in writing then work everyday in the evenings and on weekends on your plans
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