Thursday, March 09, 2006

How to become an overnight millionare

How to become an overnight millionare

So what is the fastest surest ways to becoming a millionare? Most people are looking for short cuts to the good life and joining the ranks of the millionares? The real question however should be what is the fastest way to become wealthy? To be rich and not have to work any more if you don't want to.

The first question might be what does rich mean? If you have $1 million dollars in the bank does that mean that you are rich? How about $10 million would that be enough? In most cases it really depends on your current spending, debt and life style to determine exactly what rich means to each person. I once read a definition that said rich means the length of time that you can last without working until your investments run out. For some people who live a modest life style they may have a few rental properties or a nice business that provides them with an excellent income. If they don't have to contribute a significant amount of time to this business on a day to day bases in order for it to keep running in my book I would consider them rich or wealthy.

Things to remember: There are several things to consider when trying to become a millionare fast. Without careful consideration you may head down the wrong path and become frustrated or broke while trying to become the next millionare.

  1. Remember their is only one of you so working harder, faster, and more is not the fastest way to get there. What ever you think of Bill Gates he did not get to be the richest man in the world by doing all the work himself. You are going to have to leverage something or someone else.
  2. Other peoples money (OPM) or leverage: Most of the time when you start a business and try to get it off the ground you will require some debt. This is what we call OPM or other people money. The bank may not seem like it is there to help you but it really is. Take advantage of debt to help you along but remember there are a lot of companies that have taken on too much debt and failed and a lot less companies who had low or no debt and thrived.
  3. Other peoples time (OPT): Again refer to item one, there is only one of you. If you figured out a way to make money doing something can you take advantage of the OPT or other poeples time and leverage the fact that you know how to do something, now you can get other people to work for you doing what you know how to do. In this way you can pay the person a wage and your company charges a price higher than the wage and therefore allowing you to get cut of the profits. For example, when I was in junior high and high school I use to cut lawns for people. I cut about 6 different lawns. I was getting sick of cutting lawns so I hired a few people to help me with the lawns and I paid them a wage but charged the customer a hire wage. I had started a business by having employees. What I should have done was continued hiring more people and cutting less lawns myself and eventually cutting no lawns and just running the lawn crews.
  4. Establish a repeatable source of income: I cannot prove this statement but I am pretty sure it is true, most millionares have some form of repeatable source of income. That do I mean by repeatable? Well for example, do you live in an apartment complex or know someone that does? The person that owns that apartment complex probably makes money off of it every month, it is repeatable. In fact depending how long they have owned the apartments they may have very low debt on them and may be making a bunch of profit from them each month. Chances are they might have an apartment manager that gets free rent to sign people up for leases and so on and the also might have a maintenance person that takes care of the broken toilets and so on. If they are doing it right they have a repeatable source of income that they may not have to really do much each month to maintain. Sounds pretty nice doesn't it? The great thing about this is once you have established this source of income one time you can do it again.

The fastest ways to become rich: Below you will find a list of the fastest ways to become a millionare. None of them are easy and some of them require significant risk and you could and people do loose their money and hard earned savings.

  1. Establish multiple streams of income: Most millionares have more then one income source. They might be a doctor, lawyer, or business man, or even Mr. White Collar worker, however, they have established other streams of income.
  2. Invent something: Do you ever think of an invention only to see it in the store one year later and everyone seems to be buying it? Doesn't that just grind you the wrong way. Inventing something is a fantastic way to get rich. A lot of times you think of an idea and you don't really pursue it or don't know how and that is how your invention idea fizzles and stays nothing more than an idea. If you are going to try to invent something go for it and don't do all the work alone. Don't worry too much about trying to patent it, file a statement of invention for $80 with the patent office to protect it for one year and then spend the next year trying to manufacture the product or sell the product.
  3. Start a business: There are a million different ways to ways to make a million and there are a million different business to start. I would recommend picking something that you are passionate about. Again the goal is to make money, if you can make your first $50 then you are on your way, you need to replicate the first $50 again and again and when you get too many orders or requests for service you need to hire a person and then the next person and so on. Make sure you take advantage of the Small Business Association in your area to learn from the resources that they have to help you start a business.
  4. Smart stock investing: Warren Buffet is probably the most recognized stock investor. He not only buys stocks but he buys entire businesses as well. Getting rich with stock investing is not easy, you have to do a lot of homework and research and the tough thing for me is to know when to sell my dogs and not take huge losses.
  5. Investing in real estate: Investing in real estate is a popular way to become a millionare. Unless you have great foresight and were able to invest in places like Florida or Vegas before they started to boom you will probably not get rich overnight with real estate but it is a great way to develop a passive income. You can buy and hold and rent property, buy and flip fixer uppers, or many other methods.
  6. Produce something: What do I mean by produce something. Most people know what movie or TV show producers do, they underwrite a show and hope to make a profit off the show. There are many different things to produce that are much smaller than producing a movie or a TV show. For example one person that I knew organize and produced a bike tour in Michigan. They had over 10,000 people a season going on their bike ride and they made money by booking the hotel rooms and accomodations for the bike tour.
  7. Sell something: Ebay has make this very easy for most people to sell something. The great part about selling is that is repeatable. If you find something to sell and can sell 10,000 of them you can potentially make a lot of money. For example I see people on eBay selling ink cartridges and cell phone batteries and they specialize only in these items and they have sold tens of thousands of them. Not a bad side business in my book.
  8. Solve a big problem or fill a big need: Do you have trouble find a lead for your Tupperware? I do. So someone who had the same problem invent that silly little Tupperware hold with all the same type lids and now and sold thousands of them one TV and in stores everywhere and the get $20 bucks for it. This person solved a problem and not is making big money off of the idea.
  9. Write a book: Did you know that J.K. Rowling is a billionaire. The Harry Potter books and movies have been incredibly popular over the years. I am not saying you need to be the next J.K. Rowling but selling 100,000 books on some topics might be a nice side income for you.

Tags: investing, retirement, get rich,

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