Millennials Guide to Wealth

The top methods for building wealth from the pros 

To build wealth from scratch, what are the most feasible methods for getting from Point A to B? Get inspired by some of the world’s top heavyweights in finance and learn how it’s done.

Don’t Underestimate ROTH IRAs for Long-Term Growth

Jeff Ross, a financial planner and contributing author at Forbes Magazine [https://www.forbes.com/sites/jrose/2015/09/30/ways-to-build-wealth-fast-that-your-financial-advisor-wont-tell-you/#256aa2df6641] believes a good starting point to secure a better financial future is via Roth IRAs. 

These small investment dollars may appear to be just a drop in the bucket to some. Nevertheless, financial planners like Ross say Roth IRAs provide average workers the opportunity to reap the rewards of compound interest in the future. 

Spend Less, Earn More

Ross, however, argues that a Roth IRA account isn’t a good vehicle for speeding up wealth. To materialize riches sooner, the rule of thumb is to spend less than what you earn. It also happens to be one of the most reiterated methods for building wealth on the planet. 

Bestselling financial author and CEO, Grant Cardone, sides with everyday folks who are living paycheck to paycheck. As he surmises in a recent LinkedIn post [https://www.dhirubhai.net/pulse/how-make-more-money-grant-cardone], for people who are struggling to make ends meet, it’s practically impossible to build any form of substantial wealth just by saving alone. 

To break the cycle of poverty, Cardone advises his readers to look beyond their horizons and set out to find novel ways to increase earnings. 

There are countless ways to earn more income without having to give up a current job or invest in higher education. An abundance of avenues to bring in more at the end of each month is well within reach. Try Ubering, babysitting, or cleaning, just to name a few. The point is, there are doors you can open to start making more money right now. 

Diversify Earnings

One you have mastered the art of earning more, it’s time to expand and think about diversifying your earnings. Not only does this approach provide a safety net against a job loss or unanticipated expense, for example; diversified income unleashes opportunities to pile on savings. 

Cardone, in a CNBC publication [https://www.cnbc.com/2017/01/05/self-made-millionaire-here-are-5-ways-to-get-rich.html], uses the term “symbiotic flow” to describe the art of setting up multiple income streams. He cautions, however, that readers should use their God-given talents vs veering off into niches that do not fuel their passion. 

A photographer, for example, would stand a better chance at branching out into advertising compared to opening up a donut shop, per the author. The takeaway, therefore, is to stick to what you know. 

But it doesn’t end there. 

Serious wealth builders should be masters of their trade. When the word gets out about a one-of-kind service that buyers can rely on, buyers will come knocking for more. 

Knowledge is Power

Another good way to set up yourself for financial success is to learn as much as you can from the experts. 

Investors who want to build wealth and bypass rookie mistakes have a better chance of accomplishing these goals with the help of a seasoned financial planner. Each year, for example, investors who have already wet their feet in financial markets flock to the Berkshire Hathaway annual meeting to hear what wealth guru, Warren Buffet, has to say. 

Unlike other years past, the event is now live streamed on Yahoo [https://finance.yahoo.com/brklivestream/], where it can be replayed on demand. Warren doles out years of wisdom compressed in a few short minutes. One of the main takeaways of the billionaire’s longstanding message is that “successful Investing takes time, discipline and patience.”

Another common theme among successful investors is their incessant love of learning. The more you learn, the more you grow. Virtually anyone in the modern world can tap into this vast knowledge base as there are a plethora of online resources that help you better understand the various methods of wealth creation. 

You Have Knowledge and Savings. Now What?

Once you have familiarized yourself with the various methods to build wealth and have a significant amount of savings in place, it’s time to start thinking about taking the leap into investing. 

The worlds wealthiest formulate plans to make their money work for them. It’s called passive income or effortless money. Take Rich Dad, Poor Dad [https://www.richdad.com/Resources/Rich-Dad-Financial-Education-Blog/May-2013/the-definition-of-wealth.aspx] author, for example. The well-known writer, in the initial stages of his wealth building in the 90s, invested in commodities and real estate stocks to fill up his cash flow. 

Whether you take a conservative approach to wealth building, like Mark Cuban, or are more of a risk taker, similar to Donald Trump, the scale can be tipped in your favor to earn passive income by conducting due diligence before making investments. 

Pooling Strategies 

Self-made millionaires like Peter Thiel [https://www.investopedia.com/articles/insights/082216/how-did-peter-thiel-get-rich-pypl-fb.asp] provide clear examples of the things that can be achieved when we’re self-motivated to secure a solid financial future. 

In Thiel’s case, he used a dual formula to build wealth – including leveraging his knowledge and passion for technology to provide advice to mega companies. 

He didn’t settle as an advisor, though. 

Thiel capitalized on the money earned in the process by investing in other tech giants in order to diversify his income. Another good point to note – Thiel, in the early parts of his career, was a derivatives trader. This extensive financial background bolsters his chances of building wealth in the present and future. 

Finding a Need 

Thiel is also one of the co-founders of PayPal, along with Elon Musk. Musk’s first wife, in a recent interview, gave her two cents about the best methods to accumulate wealth. She believes that one of the fastest and most proven ways to do so is to identify a need – and provide a solution.

The Bottom Line

There are multiple channels for building wealth, but there’s no one-fits-all formula for all. 

The most simplified advice is to take the first step and goal set. Next, break down this objective into smaller and more doable phases. 

Track your progress as you go along and make adjustments along the way. Over time and through perseverance, your goal of becoming wealthy should become a tangible reality.