In reality, there is no secret to becoming rich, just time-tested approaches. These time-tested approaches require the adoption of rich habits – cause and effect. Self-made millionaires need to start somewhere and require good habits to consistently stay on their chosen paths.
Based on the studies by Tom Corley, there are four predominant paths toward accumulating wealth. In order of difficulty and risk level, these are four proven ways to get rich according to Tom Corley’s study of “Rich Habits“:
Path 1: Saver-Investor
At least 22% of a millionaire’s net pay goes to separate savings accounts. Regarded as the easiest way to build wealth, saver-investors are able to attain their first million by their mid-30s. Embarking on this journey earlier on guarantees a lot of money in the end.
Saver-Investors have the following things in common:
- Are typically middle class earning six-figure salaries in their career, or living frugally.
- Have a lost cost of living, and prefer to save – their income exceeds their low standards of living.
- They save over 20% of their income, for many years.
- They invest their savings earlier on and continue prudently for many years.
Regardless of their career or job group, the saver-investors are constantly thinking of smarter ways to grow their wealth. Though this way may appear simple, it isn’t for everyone. It requires a high level of financial discipline and long-term commitment.
Learn more: How Much of Your Pay Should You Really Save?
Path 2: Virtuoses
The smallest group in the batch, with roughly 19% of millionaires. Virtuosos are the best at what they do, they are individuals who possess great talent and technical ability in a particular field or art form. They are paid a high premium for their knowledge and expertise – which sets from apart from the competition.
On average it takes a virtuoso about 20 years to accumulate a substantial network. These individuals typically work in fine arts, music, business, medical and law.
To possess the outstanding talent and technical abilities, virtuosos, spend years continuously studying and learning. For some, acquiring advanced degrees is a requirement. As such, they spend enormous amounts of time and money before any payoffs are realized. Not everyone can do this. And, not everyone has the ability to devote their time practising their skill, or the financial resources to pursue advanced degrees.
Path 3: Company Climber
The company climber is the second-hardest path to becoming a millionaire and consists of about 31% of the rich. It takes on average 22 years to accumulate a substantial net worth, with years of dedication to building skills and connections. In the majority of cases, the wealth of company climbers stems from stock-based compensation or partnership share of profit.
To be a climber, you’ll need to be highly skilled in building relationships – networking and making lasting connections. A key element to building wealth as a company climber is powerful industry connections. This takes years to build. As such, you’ll find that company climbers typically work for large corporations and devote their lives to climbing the corporate ladder until they land that cushy senior executive position, with that corner office.
To be a successful climber, a lot of factors need to play in your favour. The company you are working for needs to be stable and growing so that your time and investment are rewarded.
Path 4: Dreamer-Entrepreneur
The dreamer’s path is regarded as the most difficult way to build and requires the actual pursuit of your dreams. A majority of dreams who are millionaires never attained a degree and/or are self-employed and/or are pursuing their hustles relentlessly.
Dreamers avoid the 9-5 grind to seek their own path, which for most over a period of 12 years are able to achieve their dreams. They constitute approximately 28% of the rich and have the highest average net worth.
For a dreamer, the pursuit of their dreams is the most rewarding thing they have in their life. Also, of all the proven ways to get rich, it is the one that requires the most sacrifice. It requires dreamers to work long hours (over 60 hours a week), have non-existent weekends and vacations and be able to enormous handle financial stress. The passion of dreamers reflects in their work and the money they are able to accumulate.
Dreamers are risk-takers. They recognize the pain of having to negotiate their way to make ends meet. At first, it might be difficult to make a steady income. To finance their dreams, some dreamers have had to dig into savings to fund their dreams.
Learn more: 3 Ways to Execute Your Dream
Let’s Put It All Together
You can see there is more than one way to accumulate wealth — but none of them is easy in reality. From these proven ways to get rich, we can summarize that the rich:
- Takes time to accumulate wealth.
- Are passionate and dedicated to your chosen path to achieve your wealth goals.
- Are consistently learning and growing – reading books and listening to audiobooks and podcasts.
- Adopt frugal habits to keep what they earn and are intentional about money.
- Embrace failure and take calculated risks. A clear vision coupled with optimism and a positive outlook to wake up each day and fight your way.
So, these are the four proven ways to get rich according to Tom Corley’s study of “Rich Habits“.
Image credits: Top by Tima Miroshnichenko via Pexels.