Not Inheriting Billions? Here Are 8 Other Ways To Get That Rich
The great wealth transfer from baby boomers to younger generations is already underway, minting a new class of millionaires and billionaires thanks to large inheritances. But if you weren’t lucky enough to be born into Rockefeller-level wealth, don’t fear.
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Sure, a billion-dollar trust fund would be nice. But you don’t need a free ride from grandpa’s oil fortune to join the three-comma club. The savviest self-made rich folks know that hanging onto an inheritance alone won’t grow OR maintain massive wealth over time. To get stinking rich and stay that way, you need to be constantly on the hunt for fresh income streams and lucrative investments.
GOBankingRates tapped finance gurus and entrepreneurs who’ve achieved dream-level success without a silver spoon inheritance. Here are their best tips for amassing a billion-dollar net worth from scratch. Consider this your blueprint to building dynastic wealth the old-fashioned way – through hustle, brains and chutzpah.
Invest In High-Value Assets
“One sophisticated method to build wealth is through the strategic use of high-value assets, like private jets,” said Fahd Khan, founder and managing partner at JetLevel Aviation LLC. “Owners can leverage these assets not just for personal convenience, but also as income-generating investments. By making their aircraft available for charter when not in use, they can significantly offset costs and even profit.”
Khan shares that private jet owners can earn $3,000 to over $10,000 per flight hour through chartering. Also, there are potential tax advantages of up to 30% off operational costs annually. Plus, there are even more perks. “Regular usage can decrease long-term maintenance and storage costs by up to 20%, improving the aircraft’s operational lifespan and resale value,” Khan said.
If jets aren’t your thing, think of other things you own that others might want a piece of. Get creative and dig deep – before you know it, you’ll be making money in your sleep.
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Start a Business From the Ground Up
While riskier than investing in assets or providing services, starting a successful business from scratch is one of the most lucrative paths to wealth. Lou Haverty, founder of online retailer Skid Retailer, left his corporate banking job to launch his own e-commerce company selling skid steer attachments.
“Starting a small business is a great way to build long-term wealth,” Haverty said. “But it’s not something that is taught at school very effectively. For those people interested in starting their own business, the best way to learn about it is by getting a job at a small business in an industry that you might want to build your own business in.”
Haverty suggests taking an entry-level role at a small company to learn the ins and outs of running a business before branching out on your own in a field that matches your interests and skills.
Other Paths to Riches
While investing, offering services and entrepreneurship are some of the most common roads to wealth, the rich also utilize other strategies including:
Real Estate Investing: From flipping houses to owning rental properties or REITs, real estate provides opportunities to build passive income streams and net worth.
Owning a Franchise (or Franchising Your Own Business): There is money to be made in franchising, so it’s well worth looking into if you want to help a business (and your wallet!) grow.
Angel Investing: By providing capital to startup companies, angel investors aim for generous returns when those companies are acquired or go public.
Taking Calculated Risks: The wealthy know how to put their money into speculative investments that offer high potential returns balanced with an appropriate level of risk.
Maximizing Earnings Potential: Top performers in fields like law, medicine, finance and tech are able to command extremely high salaries, bonuses and equity stakes by providing exceptional value.
Smart Budgeting: Living below one’s means, avoiding debt and investing the difference is a key element of building wealth over time.
The Bottom Line
While the great wealth transfer will certainly create a new class of billionaires thanks to inheritance alone, the self-made rich prove there are many paths to fortunes in the billions without a family legacy. From savvy investing and entrepreneurship to offering premium services and taking calculated risks, the industrious and financially literate can still achieve massive wealth through hard work and wise money management.
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This article originally appeared on GOBankingRates.com: Not Inheriting Billions? Here Are 8 Other Ways To Get That Rich
