What’s the Best Way to Get Rich, Especially if You are Poor Now?

There are so many ways to get rich. Some ways are perceived as easier than the others. But if you want to have a high probability of success, I believe there are a few methods that are proven to be more likely to make your dreams come true.

First, let’s start with the easier one: marry rich or inherit wealth. The problem is that only 5% of the population is rich. It is probably less than 5% in some places. If you are born in a wealthy family, the rest may admire the lucky you. This leave the other 95% compete among themselves to get a wealthy spouse, if they depend solely on this “easier” way to get into the 5%.

Believe it or not, there are courses in China that train young girls on how to attract and get married to the rich men. After all, there are many new billionaires in China nowadays that a girl has higher chance to marry a wealthy man, provided that she is equipped with the necessary quality. What else is a better way to acquire these valuable skills other than taking up a course or workshop? A consultancy firm in the upscale Jianwai Soho complex in Beijing is offering this type of special training. A standard 10-hour package costs 2,000 yuan (RM925), reports The Global Times.

Since most of us are not attractive female, now, let’s get more serious to examine the other alternatives:

#1 – Build a massive portfolio of stocks.

Warren Buffett did it. Many others do too, by accumulating shares of some great profit-making companies while the price is fair and undervalued. Stock investment is suitable for people with great analytical mind. Thorough research can be done at the comfort of your home by studying the past annual reports since the information of a public listed company is easily accessible. In Bursa Malaysia alone, there are around 1000 counters to choose from. The key is to find really good company that can make good use of your money invested with them. If the management team can produce better return than what you are making on your own, it is best to have your money managed by them.

Certainly, there are a handful of companies that produce magnificent financial result consistently for many years. Find those companies and buy their share when it is at a discounted price. Accumulate enough of it through years of savings. You can even borrow money to invest when you are very confident about what you are doing. Then, you should be able to accumulate enough wealth just repeating this strategy.

#2 – Join a start-up and get stock.

Early employees in Apple, Google and Microsoft became millionaires on this basis. Is there such companies in Malaysia? For us, there are not many great startups that eventually get listed and make their employees millionaires.

But if you have the chance to study in some top universities like the MIT (Massachusetts Institute of Technology) or Stanford University in Silicon Valley, there is a great chance that one of your school mates will be starting some exciting high tech business there. MIT alumni founded or co-founded many notable companies, such as Intel, McDonnell Douglas, Texas Instruments, 3Com, Qualcomm, Bose, and Dropbox. Coupled with the perfect environment to get seed funding, angel investors’ support and the venture capitalists who are actively looking for new startup to pump in their money, it is possible that you might end up as the first batch employee in some significant startups.

For example, the number 20 employee of Google, Marissa Mayer joined Google as a software engineer. Now she is the CEO of Yahoo. When Google was publicly listed at Nasdaq, her fraction of company shares had turned into millions of dollar, making her rich almost overnight.

Getting rich through this route looks pretty fun but as many has known, not everyone has the luck that the perfect chance just comes at the right time.

#3 – Exploit your skill and become a celebrity.

This is how sports stars, authors and entertainers become rich. You have to have some special skills. Talents is a must-have trait for this route to riches.

In order to create tremendous wealth through this method, you not only need to have the specific talent, you also got to be able to market yourself really well. When I refer to talent, you got to be in the top 1%. It is just too hard to make it. Even if you are in the top 5% talented people, it might not be “talented” enough.

In this case, I would love to take myself as an example. If you got the chance to see me sing and play the piano, I believe you’ll agree that I’m talented (Look for my music videos at youtube channel www.youtube.com/kclau77 if you are curious enough to see me perform). But why didn’t I end up being a full time artist, or become a superstar? Frankly, I am not the top 1%. I am good but I’m not great. I might be the top 1000 performers in Malaysia, but I am not the top 10. Or I am not good at marketing myself ruthlessly. Perhaps I didn’t try hard enough. And finally my priority changed after I got married.

By now, I think you’ve got what I mean. To be a celebrity who earns very high rewards, you simply got to be the best in your group who perform that special skill (acting, talking, singing, running, playing badminton etc). That level of success requires a very high level of talent (that not everyone is born with), luck, hard works, and even people skills.

However, if you have any sort of talent that you can make use of, by all means go for your dreams! It is only worth living when you are chasing over your dream.

#4 – Buying, developing, managing and selling property

Property investment gives you much leverage based on the very simple logic: land is limited, but human population keeps increasing. In the long term this remains a proven way to accumulate wealth for centuries.

The challenge is that most properties, especially the good ones require relatively higher capital to acquire. One wrong decision might take years to recoup the losses. But if you learn the trade, it is quite safe to accumulate wealth this way. Since property hunting requires you to get out of your comfortable home and actively look for good bargain, it is very suitable for those who are extrovert. In fact, if you don’t feel shy of negotiating with seller, buyer, real estate agents, lawyers, even contractors, you really have the upper hand to find more good deals, or even transform a seemingly bad deal into a good one.

You can see that most of the local tycoons are normally involved in property development. Even if you find a tycoon who is not a property developer, he or she normally has a massive holding of properties or lands.

This strategy is so simple but yet so powerful. It will never go wrong if you are accumulating income-producing properties at good locations. In the long term, properties price will just go one way, which is “UP”.

#5 – Start your own business.

I would say this is the most effective and proven way to become rich. There are people getting rich in every niche and industry. If you can find a new approach to a specific need and build a profitable business that addresses that need then you’ll be able to create real value that customers willingly pay you for it.

It could be a retail business, a saloon, a consultancy or a product dealer. It will probably take years of very hard work to build up the enterprise. But if you can pull it off, the potential rewards are so huge. This is how many of the seriously wealthy people did it. I would say 90% of the rich people get rich through building a successful business.

The best thing about making money through business is that you don’t have to be good at everything your business require. You just got to find the right people to perform the work they are best at. Like what is said by the author of Good to Great, Jim Collins “We found, instead, that they first got the right people on the bus, the wrong people off the bus, and the right people in the right seats. And then they figured out where to drive it.” It is about building a team of high performers. Then your business will surely take off!

In business, you can also get to choose the industry you are passionate about. You get your freedom right from the start when you are the boss, calling all the shots!

You decide your journey

Explained above are top five best ways I can think of on how to get rich, plus the bonus method about marry your way to riches. Have you ever think of what is the suitable way for you? Whichever way you choose, the important thing is to start early. Make good use of your time now. Make good investment with your money right now. The earlier you start, the better the chance to get there on time because you will still have the luxury to perform course-correction. Start now. Good people deserve to have lots of money because you know how to spend the money on good deeds.

Comic by CWTan Copyright © www.FunnyMunnee.com

This article is originally published in Money Compass Magazine Oct-Nov 2012 Issue.