How to get rich fast: 9 ways from experts

Getting rich is pretty high on most people's list of financial hopes and aspirations. After all, this not only gives you more security when making financial decisions, but also gives you more options, such as if you want to start a retirement plan or other investments. Any financial advisor will tell you that your long-term personal finances and growth depend on more than just the amount of money you keep in your savings account. Learn how to get rich fast from financial experts.

How to get rich fast: 9 ways

But the problem with the idea of ​​getting “rich” is that it takes a lot of time and effort. Get-rich-quick schemes are mostly just a way to prey on people who are struggling financially and trying to make more money. Unless you were born into a wealthy family and inherited a large sum of money, you will probably need to become wealthy through a combination of hard work and financial diligence. Here are 9 ways to get rich quick, according to expert advice.

1. avoid or pay off debt
2. Minimize debt by spending intentionally
3. Start saving as soon as possible
4. Invest in a diverse portfolio
5. work on your career
6. start a side job
7. Create an emergency fund
8. invest in financial education
9. Avoid get-rich-quick schemes

1. Avoid or pay off debt

Debt, especially high-interest debt, isn't necessarily bad in all cases, but it's something to avoid in most cases. For example, student loans can be beneficial if the principal and interest rates are not too high and help you pursue a lucrative career.

“While some experts would argue that student loans are bad debt, I disagree,” said Robert Johnson, chairman and CEO of Economic Index Associates. . “I classify small amounts of student loan debt as 'good debt.' In my opinion, student loans have a bad reputation.”

Again, it's how you use them that matters. Student loans can certainly be bad if the numbers aren't in your favor. “There is no question that the system has been abused, and some students have racked up large amounts of debt and earned degrees without the earning power to repay that debt,” Johnson said.

Johnson also emphasized that credit card debt is always bad debt and should be prioritized over student loans. Ariel Acuña, founder of independent wealth management firm LTG Capital LLC, recommended putting at least 20% of your salary toward debt.

2. Spend intentionally and minimize costs

If you want to get rich, it's important to minimize costs and be more intentional with your spending. You need to stick to a budget to spend intentionally and minimize costs.

That way, you can track exactly where and how much you spend. Acuña recommends a spending method checklist. “When you receive your paycheck, create a prioritized checklist of how you'll spend it.”

The goal is to minimize costs as much as possible so you can use that money to build wealth.

3. Start saving as soon as possible

Laura Adams, MBA, award-winning personal finance author and Finder expert, says the sooner you start investing, the more wealth you can build over time. Masu.

“For example, Sam started investing at age 35 and stopped investing at age 65. During those 30 years, she invested $250 each month and received an average return of 7%,” Adams explained. . Her account balance at the time of her retirement is less than $300,000. Taylor, the second investor, started investing at age 25 and ended her investments at age 65. He also invests $250 every month and receives a 7% return, but after 40 years he has built up about $622,000. ”

Adam says, “By investing 10 years earlier than Sam, Taylor has over $300,000 more money than Sammy, even though he only invested $30,000 ($250 x 12 months x 10 years) more. Taylor has more money because his money has more time to compound and grow.

4. Invest in a diverse portfolio

There is a limit to how much money you can put into a 401(k) or IRA, but that limit is high enough that many people don't reach it. That way, you can always invest more in your taxable brokerage account. Therefore, if you want to get rich, you should invest as much as you can, and there is no upper limit to the amount.

Although there are various investment strategies, most experts recommend investing most of your money in the stock market to get rich. Some people recommend some real estate and speculative investments. Jeff Barrow, founder and principal advisor at Sierra Ocean, recommends a portfolio of 65% stocks, 25% real estate, and 10% speculative assets.

We recommend investing that money first in a tax-advantaged account like a 401(k) or IRA. This will help you minimize your tax burden and increase your profits in the long run. If you've maxed out all your tax-advantaged accounts, you can move them to a brokerage account.

5. Work on your career

There is no substitute for a high income. As is often said, there are limits to how much you can cut when it comes to spending, but there is no limit to how much you can increase your income, at least in theory. “As you advance in your career, business, or day job, and as you get raises and your total income increases, always try to save more than you spend,” Barrow says. “The rising cost of living can completely ruin any get-rich-quick plans.”

Of course, whether your income increases or not depends on your job. For example, someone working on an hourly wage may have minimal means of increasing their income. But moving up the corporate ladder can be a powerful way to get rich, as it allows you to save and invest more.

6. Start a side hustle

The idea of ​​a side hustle or extra job isn't new, but if you have the time and can put in a few extra hours a week, it can be a powerful way to increase your income. Gig economy jobs like Uber and TaskRabbit make it easy to find flexible work. You can also find a list of side hustle types online.

Finding a side hustle is easier said than done, but this will give you extra money to keep investing. “He should find two or three side jobs that can quickly increase his take-home pay. Save as much money as possible,” Barrow said.

7. Establish an emergency fund

Adams said it's wise to start investing as soon as possible, but if you don't have enough cash, building an emergency fund should be your top financial priority.

“An emergency fund can help you deal with unexpected expenses or hardships, such as job loss, home repairs, or medical bills,” says Adams. “A good savings goal is three to six months of living expenses, including housing, food, utilities, and debt payments. For example, if your monthly living expenses total $4,000, consider saving at least $12,000. please.”

8. Invest in financial education

“Being financially literate means having money skills such as budgeting, saving, investing, and continuing to learn about personal finance,” Adams says. “This will improve your net worth over time and allow you to make smart decisions to avoid money mistakes that can compromise your future financial security.”

There are many ways to increase your financial knowledge, including subscribing to financial newsletters from trusted sources, listening to financial podcasts, and reading personal finance books.

9. Avoid get-rich-quick schemes.

“A get-rich-quick scheme is a promise to make or receive money easily and quickly,” Adams explained. “Criminals can use these to lure you into paying for financially damaging fraud.”

Be wary of anyone who promises that their product or service will make you rich with little or no risk, as it is almost certainly a scam. Always research the person or company offering you the opportunity to review their credentials and track record with other investors.

final take to go

In reality, there is probably no secret to getting rich. In general, proven approaches are your best bet, and our experts confirm that. There are many small steps you can take right now to get rich, like putting money in a retirement account, investing in stocks and bonds, and paying off debt.

Bob Hagel and Cynthia Measum Contributed to the reporting of this article.