6 Ways To Become a Millionaire That You’ve Never Heard Of
Just about everyone wants to be a millionaire — except, of course, the world’s 2,781 billionaires. Most will never join the two-comma club, and a simple lack of creative thinking might be what keeps the average earner from living a wealthy life.
Find Out: Robert Kiyosaki’s 7 Ways To Become Wealthy Beyond the 9-to-5
Learn More: 4 Genius Things All Wealthy People Do With Their Money
“Amassing a net worth over $1 million is a common goal, but getting there is no easy feat,” said Lyle D. Solomon, Esq., a financial lawyer and principal attorney of Oak View Law Group. “While starting a successful business or rising to the top of the corporate ladder are well-trodden paths to wealth, a few lesser-known strategies exist.”
Here’s a look at some rarely traveled roads to seven-figure earnings.
Invest In Car Washes
According to Equity Multiple, one under-the-radar investment type makes sense from both a real estate perspective and from a business/cash flow perspective: car washes, which have low construction costs, low operating costs and high profits.
“Top-earning car washes can have profit margins upwards of 50%,” Solomon said. “With the right location and marketing, a car wash can generate substantial passive income.”
Check Out: 5 Ways To Become a Millionaire in Your 50s
Invest In Tax Liens
Tax trouble usually involves losing money, not opportunities to earn it — but if you want to be a millionaire, you have to think outside the box.
“Building seven-figure wealth often involves unconventional investment strategies beyond the stock market or savings accounts,” said Dennis Shirshikov, head of growth at vacation property and investment site Gosummer.com and a professor of finance at the City University of New York. “For instance, investing in tax liens can provide high returns with relatively low entry costs. When property owners fail to pay their taxes, investors can pay these taxes in return for a tax lien certificate that offers high interest rates and a priority claim over the property.”
Invest In Storage Units
Countless millionaires have earned their fortunes through real estate, but conventional routes like flipping houses and playing landlord to renters are not necessarily the fastest or surest paths to success.
“Another lesser-known strategy is investing in niche real estate markets such as storage units, which typically face less competition and can generate consistent rental income,” Shirshikov said.
Solomon agrees.
“While not glamorous, self-storage has proven resilient in both good and bad economic times,” he said. “Facilities have low construction and operating costs and can potentially provide a steady cash flow. With the right location and business model, a self-storage facility could be the key to unlocking seven-figure success.”
Invest In Indexed Universal Life Insurance
Indexed universal life insurance (IUL) is another dynamic but little-known tool for wealth accumulation.
“It’s a life insurance policy that offers the potential for cash value growth based on a chosen stock market index,” said Veronica Fernandez, finance and insurance strategist and CEO of Secure Senior Benefits. “Building wealth with an IUL involves making regular premium payments, part of which goes toward the life insurance and part into the cash value account.
“Over time, the cash value can grow well into seven figures and can be borrowed against or withdrawn for financial needs, such as funding a child’s education, supplementing retirement income, or investing in opportunities that may arise.”
Fernandez added that one of the key wealth-building features of an IUL is that it provides downside protection while allowing for cash value accumulation.
“This means that if the market index performs poorly, your principal investment is not at risk,” she said. “The gains are typically subject to a cap rate, but so are the losses, often with a guaranteed minimum interest rate.”
Consider Deferred Annuities for a Rich Retirement
IULs aren’t the only type of insurance product with the potential for seven-figure wealth accumulation.
“Utilizing a deferred annuity for part of your savings can grow your funds tax-deferred, compounding your wealth more efficiently over time,” said Shawn Plummer, CEO of The Annuity Expert.
According to Forbes, deferred annuities can provide guaranteed retirement income for life, and with no contribution maximum, their potential to secure a million-dollar retirement is real. They’re also more flexible than similar investments and offer the opportunity to purchase what are called extra rider benefits — contract add-ons like guaranteed minimum payouts regardless of your investment’s performance.
Ticket Flipping: Let Taylor Swift Fans Make You Rich
Boryana Stefanova, a personal finance blogger and owner of Cash Embrace, has written extensively about a lesser-known strategy that she says gives ordinary people the potential to build seven-figure wealth: Starting a ticket-selling business.
“Anyone can become a professional ticket broker without a college degree,” she said. “Such a business requires an upfront investment for purchasing in-demand tickets before reselling them for profit. But the effort will be worth it.”
She used the recent example of Taylor Swift’s Eras Tour, and the famous and infamous profit harvesting by ticket resellers that defined it.
“It’s no secret that a few individuals bought many tickets once they became available and earned a fortune by reselling them for a much higher price,” Stefanova said. “Tickets that cost $49 were selling for over $1,100 — and that’s only one example.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 6 Ways To Become a Millionaire That You’ve Never Heard Of
