How to Become Rich Overnight

Why getting rich quickly isn’t usually the answer

Some people who figure out how to get rich quickly end up living richly for the rest of their lives. Others, however, fall into financial trouble pretty quickly because they don’t know how to manage their finances.

It’s up for debate whether lottery winners are truly cursed (there are examples of the “lottery curse” everywhere, but there are also plenty of lottery winners whose luck does not run out). While the curse might be up for debate, there is evidence that lottery winners do go broke at a higher rate than the average American.

What can we learn from this? Falling into money quickly, whether it’s through winning the lottery, getting an inheritance, or any other way doesn’t guarantee that the money is going to last. If you don’t have the foundation to manage the money you do have, it is likely to disappear quickly.

This is why learning how to really get rich, which we’ll talk about next, is the true key to lasting financial success.


9. Take Calculated Risks

There is no money made without a risk taken. Whether it’s starting a business or investing in stocks, every avenue to making money requires some risk. Even selling your old furniture requires you taking the risk that the buyer will show up and will pay you. It is a comparatively small risk when compared to deciding whether to spend millions of dollars on a new product line, but it is still a risk.

In order to make money, you have to take a chance that a venture or idea you have will pan out. Therefore, it is important to think deeply and evaluate multiple possible outcomes before you decide that an investment is worth it. Taking risks without thinking about them beforehand is an incredibly quick way to lose money. To earn, you should take risks, but they should be calculated.

3 Wealth-Building Examples: How to Get Rich

One of the most interesting things to me in my res

One of the most interesting things to me in my research is the type of words people use when they approach building wealth.

For example, far more people search Google for variants of “how to get rich” compared to “how to build wealth” or “how to become wealthy”. You would think that they’d be similar, but people usually phrase it the first way.

I think that’s because of the mindset that many people have. “Getting rich” has short-term intimations, while “building wealth” sounds like something your grandfather did back in the day over blood, sweat, and tears.

Realistically, building durable wealth takes time. You can accelerate that process in multiple ways and build wealth quite fast, but it’s always critical to have a long-term outlook. People that make fast money and get rich swiftly often lose it just as fast as they make it.

For example, if you start an internet business and generate piles of cash flow, throw it at some sports cars and various gadgets, you could find yourself suddenly screwed if something in the marketplace changes, like your Google traffic, or advertising rates, or whatever the case may be.

No matter what you’re earning, the key is to put your earned money into reliable investments, like index funds, dividend-paying stocks, cash-producing real estate, and more.

And if you’re not earning a ton of money, you can still build serious wealth over time, and get rich eventually. This section will outline various fast and slow, modest and aggressive, ways you can build wealth.

Roth IRA example:

The current limit for a Roth IRA is $6,000 per year for people under 50. You get to put in after-tax money, and from that point on it’s never taxed again. If you make over $122,000 as a single-filer or $193,000 as a married couple, then you’ll be restricted from using this investment vehicle.

What rate of returns should you count on for an account like this?

John Bogle, the founder of Vanguard and inventor of the index fund, predicts based on current high market valuations that stocks will return about 5% per year over the next decade. McKinsey & Company forecasts 4-6% stock returns pear year over the next 20 years.

It’s impossible to say for sure how fast your equity investments will grow, but 130 years of historical price-to-earnings data from Dr. Robert Shiller agree with their estimates; high market valuations like today have resulted in poor forward-returns over the next 10-20 years at every point in history.

So let’s say you put away the maximum $6,000 each year, and continue to put away that amount (adjusted for inflation) each year for the next few decades. The following table shows your growth of wealth based on different rates of return over different periods of time:

401(k) and Thrift Savings Plan (TSP) example:

401(k) and Thrift Savings Plan (TSP) example:

With these types of retirement accounts, you can invest up to $19,000 per year and potentially also get an employer match, with no restrictions based on income. The 401(k) is commonly used by private employers while the TSP is the main investment vehicle for federal civilian and military personnel.

The money you put in is pre-tax, and is taxed when you withdraw from it. (Although nowadays, they also have Roth 401(k)s and Roth TSPs).

The following table shows the growth of wealth in your 401(k) or TSP at different rates of return, assuming you put in the maximum amount with no matching contributions.

If the employer throws in another 5% of your salar

If the employer throws in another 5% of your salary, then even better. That’s what you get with the TSP, while 401(k) contribution matching will vary by employer.

Entrepreneurship example:

Suppose you took $100k, invested it to start your own business, and then managed to grow the equity of that business by 15% per year.

This chart shows the inflation-adjusted value of that business equity over time, and shows how multi-millionaires get rich:

In reality, you’d also be receiving a salary

In reality, you’d also be receiving a salary from that business at some point, which you could be investing. And you might have business partners or early investors that affect your ownership percentage of it.

But generally speaking, to achieve very high rates of return over long periods of time, entrepreneurship in some capacity is the most reliable route, even if it is somewhat high risk.

3. Create a Plan and Follow It

The likelihood of suddenly stumbling upon unlimite

The likelihood of suddenly stumbling upon unlimited riches is extremely low. While it may seem that a lot of the success stories you hear are luck-based, this is actually not true. There is probably some chance and luck involved, but most rich people became rich through meticulous planning and discipline.

This includes things like budgets and timelines, as well as a plan of what to do at every step of the way to success. It is important not to get complacent and do your best to keep going, and having a plan helps without wasting unnecessary amounts of time. Creating a budget and following it is only one part of this process.

Don’t check out

“This is my most important tip,” Melissa Houston writes in Forbes. “Hiring financial help such as accountants and financial advisors does not leave you with the right to check out of the financial activity in your business.”

“Nobody will care about your money as much as you do, so never give your financial power away,” adds Houston. ‌Invest the time to educate yourself on money management. Why? When you do, you can see what’s going on and know when an investment isn’t helping you achieve your goals.

To sum it up, learning how to get rich is a process. ‌Despite the best financial habits, investments or business ideas, even the most successful ones can‌ ‌fail‌. ‌However, if you get educated and get assistance, you will be more likely to succeed, says Houston.

Enhance‌ ‌your‌ ‌current‌ ‌income

By boosting your income, you can begin the journey towards becoming wealthy. ‌A great way and simple to do this is to ask for a raise at your present‌ ‌job. ‌It’s important that you have an excellent work record and have worked for the company for a while before before asking, though. ‌It is possible that if you are a good employee, they will increase your salary in order to keep you from looking for another position.

What if your salary request is denied? ‌Well,‌ ‌if‌ ‌you‌ ‌have‌ ‌been‌ ‌working for your current employer for a long period of time and have done a good job, now is the time to move on to‌ ‌greener‌ ‌pastures. ‌Upgrade your resume and start looking for an opportunity that can give you the pay bump you deserve.

If you want to get a better-paying job, you may also consider furthering your education. ‌As an alternative to taking out student loans for college, however, you can consider a career in the trades. Some examples would be an electrician, plumber, HVAC tech, dental assistant, or hairdresser.

Also, trade career programs are usually less expensive and take less time to complete than colleges.

How can I be a millionaire in 5 years?

To become a millionaire in five years, you’ll need to do a few key things:

  1. Pay off all high interest debt
  2. Limit your spending
  3. Start investing as much as you can immediately and consistently
  4. Boost your earnings, including by developing multiple streams of income
  5. Create short term financial milestones alongside your longer term one
  6. Monitor your finances and adjust as needed

If you’re starting from zero, it’s not going to be easy but it’s definitely doable.

For instance, if you invest all your money in broad market index funds that track the S&P 500 (which is actually how I invest my money, as it’s low-cost, reliable and easy to simply set and forget), the average annual return is 8%.

Not sure how to start investing? The Simple Path to Wealth is the book I recommend to everyone for this. It literally shows you everything you need to do to build your net worth from zero to seven-figures. In fact, it’s the exact strategy I follow for investing my own money.

To become wealthy in five years by becoming a millionaire through investing in this way, you’d have to invest $157,830.05 per year – yes, don’t forget the five cents!

Clearly, that won’t be possible for everyone. And there’s no reason why you can’t take a few extra years to do the same.

(If you want to see how much your investments will be worth in future, this simple, free compound interest calculator does the job.)

But people have done it – like this person, for example, who followed the exact steps outlined above to reach that point.

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5. Avoid fake status symbols

When you think of a millionaire, you’re sure to picture them driving an expensive car and flaunting a watch that looks more valuable than your house. 

These status symbols have nothing to do with the millionaire mentality.

The path to financial freedom is about consciously consuming, not spending big.

“Do you really need to spend two or three months’ salary to go on vacation somewhere far away, when you could rest so much better somewhere close to home?” Müller said.

3. Invest as Much as Possible in a Diversified Portfolio

While there are limits to how much you can put into a 401(k) or IRA, those limits are high enough that many people are not able to reach them. And if you do, you can always invest more in a taxable brokerage account. Thus, if you want to become rich, you should invest as much as you can — there is no upper limit to that amount.

There are many different investment strategies, but most experts recommend putting most of your money in the stock market. Some recommend a smaller portion of real estate or even speculative investments. Burrow recommends a portfolio of 65% stocks, 25% real estate, 10% speculative asset of choice.

You will want to invest that money in a tax-advantaged account such as a 401(k) or IRA first. That will help you minimize your tax bill and thus increase your returns over time. If you manage to max out all tax-advantaged accounts, you can move to a brokerage account.

2. Spend Intentionally and Minimize Costs

If you want to become rich, it’s important to minimize your costs and be more intentional with your spending. This is the second step because it should be one of the first things you do. Spending intentionally and minimizing your costs will require you to keep a budget.

In doing so, you can keep track of exactly how much you spend and where you spend it. Acuña recommends a checklist of how you will spend. “Develop a prioritized checklist for how you’re going to spend your paychecks when you receive them. This includes allocating money to debt reduction, savings, fun, emergencies, etc.”

Your goal should be to minimize costs as much as possible so you can put that money toward building wealth. Jeff Burrow, president and lead advisor at Sierra Ocean, said you should “ravenously find ways to limit your lifestyle costs and save 25% of your income.”

Explore: What Does a Financial Advisor Do and Should You Hire One?

How to become rich fast

It is essentially impossible to become rich overnight. However, by spending less than you earn and investing the rest, it’s certainly possible to become rich over the course of several years thanks to compound interest.

Unfortunately, this means that if you’re looking for things like “how can I get rich in 5 minutes?”, there’s really no answer. Yes, even if you believe the superstitions about when your right hand is itching.

But by following the steps we went through earlier, you can become rich faster than you probably think. This is especially the case if you start investing sooner rather than later.

In fact, as you may have noticed from the table earlier in this article – which may be pretty unsurprising – the more you invest, the faster you’ll become a millionaire. 

But this table also showed that the earlier you start investing is actually a more important point, as it gives your money even more time to compound in value and build upon itself.

What is the fastest way to be rich?

The fastest way to get rich is to follow the steps we outlined above. That is:

  1. Pay off all high interest debt
  2. Limit your spending
  3. Start investing as much as you can immediately and consistently
  4. Boost your earnings, including by developing multiple streams of income
  5. Create short term financial milestones alongside your longer term one
  6. Monitor your finances and adjust as needed

This strategy has been proven to work time and time again when it comes to making people rich.

All those get-rich-quick schemes are absolute scams, as there is, unfortunately, no way to get rich by tomorrow. But you really don’t need to even consider these when the process of actually getting rich is as simple as the list above.

Sure, it will take some time. But by committing yourself to your ultimate objective of a certain net worth and staying the course over the coming years, you’ll quickly see the value of your investments start to grow.

(Plus, isn’t all that patience worthwhile when you consider that it’s been proven that money really does buy happiness?)

About the Author

Bob Haegele is a personal finance writer who specializes in topics such as investing, banking and credit cards. He left his day job in 2019 to pursue his passion for helping people get out of debt and build wealth. You can find his work at outlets such as Business Insider, Forbes Advisor and SoFi.

2. Avoid any kind of debt

Take everything you’ve been told about saving and apply absolutely the opposite to debt. Don’t buy anything you can’t afford. It’s a simple rule that will also help you avoid whims.

“You want a smartphone, but you don’t have the money to buy it? Then don’t buy it,” explained Müller.

A lot of debt occurs when people become addicted to the fleeting pleasure that you get from making a purchase.

 “Leave a note in your wallet that says — do I really need that? With time, you’ll start asking yourself that question, and then you won’t need the note anymore,” Müller said.

Bottom Line

Becoming affluent is attainable, but it does require time and work. It’s not something you will achieve by being apathetic or not stretching yourself professionally and personally.

It’s highly unlikely that you will get rich overnight, but it is possible to become wealthy over the course of a decade or two. If you pair your efforts with wise decision-making and ingenuity, you’ll find success.

What’s your favorite way to grow wealth? How often do you monitor your net worth?

*Actual earnings may differ and depend on factors like number of deliveries completed, time of day, location, and expenses. Hourly pay is calculated using average Dasher payouts while on a delivery (from the time you accept an order until the time you drop it off) over a 90 day period and includes compensation from peak pay, tips, and other incentives.

*Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.

4. Work on Your Career

There is no substitute for higher income. As they say, there is only so much you can cut in terms of expenses, but there is no limit to how much your income can increase, at least in theory. “Ensure that as you advance in your career/business/main occupation, you always save more than you spend as you earn raises and increase your gross income,” Burrow said. “Lifestyle cost creep will absolutely wreck a plan to get rich as quickly as possible.”

Of course, increasing your income will be contingent upon the job you have. Those working hourly jobs, for example, may have minimal leverage to increase their income. But if it is possible for you to move up the corporate ladder, that can be a powerful way to become rich as you will be able to save and invest more.

Etiquette: ‘How Much Do You Make?’: How To Politely Shut Down Nosy Money Questions


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