There are 4 main paths to becoming a millionaire—and this is the easiest one, says money expert
S E E D E D C O N T E N T
Bugatti’s one-off La Voiture Noire supercar, which sold for nearly $19 million. Source: Bugatti
Unless you were born into a rich family, building wealth can be very hard — depending on the path you choose.
Many people look at multi-millionaires and desperately want to know: What’s their secret? How did they get there? What does it take ?
During my research, I found there are four predominant paths toward accumulating wealth. The “Savers-Investors” path is the easiest, while the other three involve much more risk.
1. The Saver-Investors path
Just less than 22% of the millionaires in my study chose to take the Saver-Investors path. Not only is it the easiest way to build wealth, but if you start early , it almost always guarantees a lot of money.
The Saver-Investors in my group reached their first $1 million around their mid-to-late 30s, and accumulated an average net worth of $3.3 million by their mid-50s.
They also had four things in common:
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Just less than 22% of the millionaires in my study chose to take the Saver-Investors path. Not only is it the easiest way to build wealth, but if you start early , it almost always guarantees a lot of money.
The Saver-Investors in my group reached their first $1 million around their mid-to-late 30s, and accumulated an average net worth of $3.3 million by their mid-50s.
They typically had a middle-class income (many reached a six-figure salary early in their career, and if they didn’t, they lived very frugally .)
Approximately 28% of the folks in my study were Dreamers, and they accumulated an average net worth of $7.4 million — far more than any of the other groups — over a period of about 12 years.
All of them told me that pursuing their dreams was one of the most rewarding things they had done in their lives. They loved what they did for a living, and their passion showed up in their bank accounts.
Those who want to take this path, however, must be willing to work long hours and able to handle financial stress
According to SSA.gov I am one year away from retirement. Guess I better start investing in those lottery tickets.
According to SSA.gov I am one year away from retirement. Guess I better start investing in those lottery tickets.
I had a lot more stress and concerns when I was a millionaire successful practising professional with a home in an exclusive area of Toronto, a lakeside home with a boat and 2 snowmobiles, cars for myself, my wife, and my two kids, and a half interest in a Florida golf condominium, investments in a movie and real estate, than NOW when the most valuable asset I have is my camera, living on a meager Canada pension and my wife's income (which is half what my after-tax pension is). Now the only worries I have are about my declining health and how much more the landlord is going to ask for next year's rent.