The 5 Step Strategy To Getting Rich Quickly


Many dream of becoming rich but very few achieve it. If you are young, the easiest way to become wealthy is through long-term investing in the stock market. If you are in your 20s and say you have £50,000 to invest and you do so with an average rate of return of 10%, 10 years later or in your 30’s you will have £129,687, a further 10 years later or in your 40s you will have £336,375 and leaving your money invested for a further 10 years will ensure your money has grown to £872,470. So if you are young and have a long-time frame, investing in the stock market can make you rich.

But what if you don’t have the long time horizon. What it you are middle-aged or older and want to get rich in the next 5 – 10 years, what do you do? In order to become rich when you have a short time horizon, you need to do so by thinking outside the box – you need to do something different than investing in the stock market.

Many people who got rich within a short time period consistently did the following 5 things:

1. They are frugal spenders and aggressive savers, far outpacing their peers. They know they key is to spend less than they earn and they invest the difference back into their business.

2. They understand and manage their debt. They don’t let debt manage them. Many people today are obsessed with credit and have the ‘I want it know mentality’. If you don’t have the money, don’t buy it.

3. Start their own business. Their primary focus is on starting and growing their own business. They know that building a business is the key to quick riches.

4. They invest in real estate and other non mainstream opportunities. You see with investing in property through a buy to let mortgage, you use the power of Leverage. By this I mean that you only need to pay a partial amount of money for the property whilst your bank pays the majority. Lets take an apartment worth £100,000. You only need to put £40,000 down and your banker will put £60,000. By renting out the property, your tenant will be paying off your loan for you – this is called leverage. Furthermore if your apartment appreciates in value to £120,000, that is profit for you as your bank will want none of that. You will also get a tax advantage too – instead of paying capital gains tax of £80,000 (sale price of £120,000 – your ‘original purchase’ of £40,000), you only pay capital gains on £20,000 (£120,000 – £100,000).

5. They invest in stocks and bonds to preserve their wealth as opposed to creating there wealth. To get rich with stocks you need to have a long time horizon. If you are looking to get rich quick, long-term investing is probably not for you (Although you can learn to trade stocks with ETORO). The rich mainly use the stock market as a tool to preserve there money and slowly increase is as opposed to using it as their primary wealth beading mechanism.
Many younger millionaires did not become millionaires through the stock market. They only started investing in the stock market once they had made money through their own businesses.

 

Don’t get me wrong. I’m not saying that investing in stocks has no value the older you get. Investing in stocks is essential. But it is not the way to get rich if you want to do it quickly.


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