Aside from inheriting your wealth, there are 3 main ways to become wealthy over time that almost anyone can do and there really are no secrets. They all depend upon income, savings and investments as follows:
Slow and Steady Corporate Route: This is the most common, easiest, and accessible way for most people even with average wages or slightly above average wages. It may take some time, say 25 to 30 years, but you must do the following: increase your wages by at least 3 – 5% per year, start investing no later than your 30’s, save approximately 15% of your income, earn a rate of return of about 7%, and don’t touch your investments. Many people have a match from their employers, which can be included as part of their savings, so essentially they are saving around 12% of their own money. It’s a very practical, but slow way to wealth, with the largest obstacles being the starting age and your savings percentage.
Corporate Executive Route: This way is available to less people, but if you want to accelerate your wealth then the corporate executive route is much quicker. Your wages will grow double-digits, along with large, but variable bonuses, and access to stock options. Stock options can really increase your earnings and wealth, which will enable you to become wealthier sooner. Since your income accelerates so quickly you should be able to save a much larger part of your income than 15%, plus the rate of return on your stock options has the potential to be very high. There is a smaller pool of people who can take this route, but it works. The downside to this approach is variable income, risk of stock options dropping in value or becoming worthless, and the ups and downs of the corporate world.
Successful Business Owner Route: Running a small business can be challenging, but very rewarding. If you run a small business well, then your earnings will be way above average and your business will increase in value over time. The quicker you grow your business and increase profits, then the quicker you will become wealthy. Additionally, some business owners purchase the real estate where their business operates, which generally increases wealth even more and faster. You need to invest your income just like the other ways, but an added bonus is the value of the business. If you create a saleable business, then this can be your ticket to early wealth and retirement if you decide to sell. But who wants to retire in their 40’s? I can think of a few.
Other factors to consider that can help you are: minimizing debts, staying healthy, having a strong, supportive family, and taking smart risks/good decision making.