The 5 Fastest Ways To Become Rich, According To Experts

Being rich is more than about the dollar amount

Being rich is a state of mind. In a sense, you could be rich but still poor, and vice versa.

You can define “rich” in different ways. There are a lot of people who simply consider it as having a lot of money. For them, rich is equivalent to a being a millionaire.

But rich can also be psychological richness. It is an achievement of being able to live without the worry of money. You don’t necessarily need to own a castle to be considered rich. Everyone can be rich as long as we are able to do what we desire freely and to have the fulfilment in life. The key of it is to live with or even less than what you have. To be “normal” even when you are financially capable to do a lot more.

You might have your own preference on which definition suits you better, but here are some ways on how to get rich. It may help you achieve either (or both) of them.


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.

Brew coffee at home

Ditch your daily latte. Choose a home-brewed cup of joe from the couch and put the money you saved to work instead.

Bach coined the term "The Latte Factor," which basically says that if you eliminate your $5 daily latte (or muffin, smoothie or any other unnecessary daily expense), you could save quite a bit of money over time, especially if you use that money to invest.

It worked for for self-made millionaire Chris Reining, who crossed the $1 million threshold at age 35 and retired at 37. Reining says that forgoing his daily coffee helped him save over half of his income.

"I know there are some people out there that say you shouldn't worry about the $5 latte, but the more I think about it, cutting out the $5 latte was a good place to start. Because if you try to downsize your house, get rid of all yours cars and make all of these drastic changes, it's so overwhelming and you're not going to do any of it," he tells CNBC Make It.

VIDEO 2:09 02:09 Self-made millionaire: You can get rich by giving up coffeeMoney

Know your short-term needs

Make sure you have enough cash and other short-term investments to enable you to pay tax on your proceeds (if any), to fund any pre-planned purchases (family travel, second home, etc.), or to purchase medical insurance (if you are no longer covered by your business’s insurance). There will also likely be unexpected expenses for which you haven’t budgeted—make sure you have enough in your “day-to-day” accounts to cover unforeseen circumstances.

5. Create multiple streams of income

Do you remember the saying, don’t put all of your eggs in one basket? The same goes when it comes to your income. The average millionaire has seven streams of income! By diversifying your income, you grow wealth faster and create financial security.

For instance, if you have a side hustle in addition to your day job, you have two streams of income rather than depending on one or the other. This is a smart money move because if you were to lose your job for some reason, you would still have some income coming in from your side hustle. You can even grow your side hustle into a small business if you want to.

Income streams consist of your main job, side hustle, passive income, investment accounts, interest from savings accounts, rental properties, and more. There are many ways to create multiple streams of income. Creating multiple streams of income is a sure way on how to become wealthy.

Keep in mind that while get-rich-quick schemes might sound attractive many of them are exactly that. Schemes.

So instead of trying a get rich quick scheme, work on creating multiple sources of income! Remember rich people find multiple ways to bring in money, especially billionaires!

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.

More Advice: 8 Insider Tips to Get Rich in Real Estate

3. Index funds or equity-based mutual funds

Equity, shares, stocks- whatever you want to call it- make for the biggest percentage of net worth among ]all the billionaires on those Rich Lists that you read in the media. Mukesh Ambani became the richest person in Asia after shares of Reliance Industries Limited (where he holds around 49% stake) soared to new all-time highs.

The key plan here is: to make money in your sleep.

It may seem overwhelming to some to invest in the markets. This is why mutual funds exist. Give your money to an asset management company (mutual fund scheme providers) and let them invest for you.

If you want to be a DIY investor, you can bet your money on index-funds. Ace investor Warren Buffett also favours this form of investment for beginners as it is the simplest, cost-effective and safest way to diversify your equity investment.


Index funds are based on an underlying index like Nifty or Sensex. This means that these funds simply invest in the same stocks that form the index. Your returns from this fund will be the same as the movement in Nifty or Sensex.

What makes them safe is that Nifty 50 and Sensex, the benchmark indices of NSE and BSE, respectively, include large-cap companies, which are stable in their earnings. Also, these indices are revised every 6 months by an expert committee to keep any unstable stock out.

In the past, PNB and Yes Bank have been removed from Nifty 50 and replaced with other better performers.

On the other hand, investing money on individual stocks requires dedicated research, which could be difficult for someone who works in a different industry.

Index funds are a great form of passive equity investment for the long term.

Note that equity is not a quick money-making deal. It requires patience and should be looked at with a long term perspective, especially if you only investing in index funds.

Create appropriate estate planning structures

Work with your estate-planning attorney to determine and create appropriate structures for yourself and your family to help hold, manage, protect and transfer your new wealth. These can include Wills, trusts, limited partnerships or LLCs, and other planning vehicles. If you are charitably inclined, you can also create a private foundation or donor-advised fund, which can fulfill not only family and personal goals, but also tax and financial ones, both before and after your liquidity event.

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.

Bonus Offer: Bank of America $100 Bonus Offer for new Online Checking Accounts. See page for details.

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.”

Make Your Money Work Better for You

Increase your contributions

Once you've set up your finances to automatically put money away, take things one step further by incrementally increasing your savings every year. Even a 1 percent bump to your employer sponsored 401(k) plan, if you have one, can make a major difference over time, thanks to the power of compound interest.

You can check online to see if you can set up "auto-increase" for your 401(k), which allows you to choose the percentage you want to increase your contributions by and how often. This way, you'll never forget to up your contributions, or talk yourself out of setting aside a larger chunk.

1. Pay yourself first

How much ever you make, pay your future self first.

Minus your monthly living expenses and transfer the rest towards savings. It could be in the form of mutual fund SIPs, a government scheme, a recurring deposit or even just another savings bank account.

You could automate these contributions. Banks now provide Flexi savings accounts that convert the unutilised sum in your account into fixed deposits (FDs). There are auto deductions for RDs, small savings schemes like PPF and SIPs as well. Just provide the auto-debit instruction to your bank.

Ideally set the auto-deduction for the start of the month so that you are not tempted to spend your salary.


If you get a hike, either increase your contributions towards existing investments or add another investment to diversify earnings.

7. Invest your money

A huge factor in how to get rich from nothing is investing your money. Even if you don’t have much money, you can still get started investing to start building wealth.

Similar to creating multiple income streams, you will want to eventually diversify your investments too. This way, you are bringing in income from a variety of sources. Some investment types include:

  • Stocks
  • Bonds
  • IRAs
  • 401k
  • Real Estate
  • Businesses

The sooner you invest, the quicker you will build your wealth. Some people avoid investing because of their fear of the stock market. Don’t be too intimidated by investing; you can learn everything you need to start investing with Clever Girl Finance’s Book “Learn How Investing Works, Grow Your Money”! You will learn:

  • How investing works
  • How to create an investing strategy
  • What key pitfalls to avoid
  • How to leverage investing on a modest salary
  • Building a nest egg for your future
  • Real success stories from other Clever Girl Investors

You will learn how to become wealthy from this fantastic book by learning how investing works!


Leave a Comment