7 Ways To Build Wealth in Less Than Two Years From Millionaire CEOs

Building wealth is something many aspire to achieve, but it often feels like more than saving and investing is needed to reach your financial goals. However, with the right strategies and mindset, it’s possible to fast-track your journey to success. When moving your net worth up the scale from average to wealthy, it’s a good idea to heed the advice of millionaire CEOs and other successful entrepreneurs.

Discover More: 3 Things You Must Do When Your Savings Reach $50,000

Building Your Wealth: Quick Take

Sometimes it feels like you are just working to pay off your credit card bills. But to build a better budget and financial plan for yourself, you’ll need to set up varying savings, investment and retirement accounts. Here are a few ways to grow your money in those accounts:

• Put consistent payments into a Roth IRA or 401(k) plan.

• Invest in stocks, bonds or mutual funds.

• Pay attention to the S&P 500 index to track how your investments are doing.

• Pay off high-interest debts first.

• Set up an emergency fund or high-yield savings account with good interest rates.

7 Tips From Ultra-Rich CEOs To Help Build Your Wealth

Here are seven actionable tips straight from the playbook of successful CEOs:

1. Set clear goals: Ingvar Kamprad, late founder of IKEA, said, “The most dangerous poison is the feeling of achievement. The antidote is to every evening think what can be done better tomorrow.”

2. Invest wisely: “The stock market is a device for transferring money from the impatient to the patient,” Warren Buffett, CEO of Berkshire Hathaway, shared.

3. Live below your means: Jeff Bezos, founder and executive chairman of Amazon, once said, “If you can’t feed a team with two pizzas, it’s too large.”

4. Start a side hustle or small business: “Clients do not come first. Employees come first. If you take care of your employees, they will take care of the clients,” Richard Branson, founder of Virgin Group, encourages.

5. Financially educate yourself: Marissa Mayer, former CEO of Yahoo, pointed out, “I always did something that I was a little not ready to do. I think that is how you grow. When there’s a moment of ‘Wow, I’m not so sure that I can do this,’ and you push through those moments, it’s then that you have a breakthrough. Sometimes that’s a sign that something really great is about to happen. You’re about to grow and learn a lot more about yourself.”

6. Assess your risk tolerance: “Don’t bunt. Aim out of the ballpark. Aim for the company of immortals,” David Ogilvy, founder of Ogilvy & Mather, encourages those who want to build their wealth.

7. Stay disciplined and flexible: Mark Zuckerberg, co-founder, chairman and CEO of Meta Platforms, said, “The question I ask myself like almost every day is, ‘Am I doing the most important thing I could be doing?’ Unless I feel like I’m working on the most important problem that I can help with, then I’m not going to feel good about how I’m spending my time. And that’s what this company is.”

1. Set Clear Goals

Know exactly what you want to achieve financially. Set clear, achievable goals and make a plan to reach them that is within your reasonable reach. Setting goals in general makes it much more likely that you’ll put the work in.

Here are some common examples of financial goals to set for yourself:

• Start a college fund for your kids.

• Diversify your investment portfolio.

• Invest in a retirement plan.

• Have an emergency fund for unexpected expenses.

• Save for a down payment on a house.

• Pay off student loans.

2. Invest Wisely

Invest your money wisely in assets that generate passive income, such as stocks, real estate, businesses or just maxing out your 401(k) contributions. There are many different types of investments with varying levels of risk. Pick whichever ones you’re comfortable with to get started and then eventually diversify. Here are some examples of where you can dive into investing wisely:

• Stocks

• Bonds

• Retirement plans

• Treasury securities

• Mutual funds

• ETFs

• Real estate

• Savings accounts and CDs

3. Live Below Your Means

Avoid unnecessary expenses and live below your means. Saving money is crucial for building wealth and any little tweak you can make to your budget can save you hundreds per month which helps grow your money quickly. Just because you can afford something does not mean you should waste your money on it or make a poor investment decision.

Here are a few ways even millionaire CEOs dip beneath their financial threshold to build their wealth:

• Buy a modest house.

• Drive a used car.

• Take public transportation.

• Pay yourself first and make your money work for you.

• Cook your meals at home instead of eating out.

4. Start a Side Hustle or Small Business

Consider starting a side hustle to generate passive income. It could eventually grow into a full-fledged business. Don’t rely on a single source of income. Diversify your income streams to protect yourself from financial downturns.

Being your own boss is great, especially when it comes to being in charge of all of the revenue you can grow. Focus on creating value for others through your work or business endeavors. The more value you provide, the more money you can potentially earn.

Here are some side gig options that could easily grow into a small business:

• Start an e-commerce store and sell your art, handmade goods or vintage items.

• Start a housesitting or petsitting company.

• Teach or tutor online.

• Start a cleaning business.

• Sell or repurpose thrift store clothing or home decor.

• Begin dropshipping.

5. Financially Educate Yourself

Take the time to educate yourself about personal finance and investment strategies as knowledge is power and also lucrative. Once you have that foundation, you can build a strong network of mentors, advisors and like-minded individuals who can support and guide you on your wealth-building journey.

Lastly, don’t forget to give back to others. Whether through charitable donations or mentorship, giving back not only helps others but also brings fulfillment and abundance into your life. Often the more you give, the more that comes back to you, and you’ll be surprised how much that can add to your finances and more.

6. Assess Your Risk Tolerance

Take calculated risks and be willing to risk more in your investments and business ventures. Without risk, there can be no reward and many millionaire CEOs are familiar with the highs and lows of investing. They tend to have a high-risk tolerance for stocks, bonds and low-cost index funds, as well as a low-risk tolerance for letting their money sit around or go to waste.

7. Stay Disciplined and Flexible

Stay disciplined and consistent in your wealth-building efforts. You also need to adapt to change and be willing to pivot when necessary. The business landscape is constantly evolving, and flexibility is key to staying ahead. Sticking with your savings and investment plans to achieve your goals doesn’t mean your plan or goals cannot evolve.

Final Take To GO

Building wealth is achievable with the right mindset and strategies. It can help to follow the paths of millionaire CEOs to get you started on the fast-track journey to financial success in less than two years. Remember, it’s never too late to start building wealth, so take action today and pave the way for a brighter financial future.

FAQ

Here are the answers to some of the most frequently asked questions about building wealth.

• Do 90% of millionaires make over $100,000 a year?

  • Though salaries will vary greatly, 90% of millionaires do not make over $100,000 a year, in fact, that percentage is closer to 31% for that salary. This statistic is interesting because it shows that you don't necessarily have to make an insanely high salary to become a millionaire.

• What are easy ways to build your wealth quickly?

  • Here are a few ways you can build your wealth quickly:

    • Live beneath your means

    • Start a side hustle

    • Pay off debt

    • Invest wisely

    • Set financial goals

    • Seek out professional financial advisors

• Who do billionaires use to manage their money?

  • Billionaires, often have several businesses, estate plans, life insurance, medical bills, staff payments, tax complications, revenue streams and more to deal with so they seek out the advice of financial experts. These include tax specialists, estate planners, investment strategists and security advisors.

This article originally appeared on GOBankingRates.com: 7 Ways To Build Wealth in Less Than Two Years From Millionaire CEOs