“Get rich quick” is something countless people search for every day. It’s a headline-grabber. Yet people keep falling into get-rich-quick traps, despite mountains of evidence that most are scams or bad bets. Getting rich quick isn’t the answer to your money problems. Focus on getting rich slowly instead.
Everyone I’ve met or read about who has built real, lasting wealth did it slowly. I’m not talking about months or years. I’m talking about decades.
And everyone I’ve met who constantly chases the next scheme to get rich quick is broke. I doubt my experience is unique. Get rich quick usually means stay broke.
Bad ways to build wealth
Get-rich-quick schemes might tempt you with overnight riches, but more often than not they leave you poorer.
Here are some poor ways to try to build wealth:
- Multi-level marketing (MLM) schemes: most people who join make little or nothing, and many lose money.
- Forex and CFD trading: you’re up against professional traders and high-frequency trading firms. Most retail CFD accounts lose money, as the risk warnings that UK providers must publish show.
- The lottery: the odds of winning the National Lottery jackpot are about 1 in 45 million.
- Speculative crypto: prices can swing wildly, and many coins have fallen to almost nothing.
- Anything that makes you think “is this too good to be true?”: it usually is. Check the FCA ScamSmart warning list before you hand over money.
I’ve saved the worst for last: day trading. During the COVID lockdowns, lots of people took up day trading, often using options. Apps like Robinhood and Freetrade made opening an account easier than ever (Freetrade doesn’t offer options). Many people started trading for entertainment or as a way to get rich. For most, it doesn’t end well. Day trading isn’t a game. Sooner or later, most people get burnt, and losses on leveraged products can exceed what you expected to risk.
Good ways to build wealth
So what are the good ways to build wealth? Here’s the secret: spend less than you earn and invest the difference.
You can invest in many types of assets: quality companies, dividend-paying shares, index funds or property. The key is persistence. Put money into your investments month after month, year after year.
It’s simple, but not easy. Many people won’t stick with it. They’re more tempted by get-rich-quick schemes, and I understand why. When you’re young, broke and hungry for wealth, a 7% return isn’t exciting. Put away £1,000 and a year later you have £1,070? What’s the point?
But invest £500 a month for 30 years at 7% a year, and you’d have about £610,000. At 10% a year, it would be about £1.13 million. You’d have paid in £180,000. These figures ignore fees, tax and inflation, and returns are never guaranteed. Use your ISA and pension allowances so more of the growth stays yours.
This works at any age. I often get questions like: “I’m 40 and have nothing saved. What’s the secret you’re not telling everyone so I can get rich faster?” There is no secret. Spend less than you earn and invest the difference.
At 40, you probably have more than 40 years of life ahead of you. That’s a long time to invest. Don’t try to get there next year. Build real, long-term wealth, and you’ll be glad you did at 60.
So don’t rush. Don’t be afraid to get rich slowly. Your future self will thank you.
When investing, your capital is at risk. This is not financial advice.
Pedro is passionate about finance, marketing, and technology. He is a growth manager at several online projects and a former digital marketer for a fintech company.
