How To Become Rich: 9 Fastest Ways, According To Experts

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Getting rich is pretty high on most people’s list of financial hopes and aspirations. After all, it will allow you to not only have more security when making financial decisions but also have more options such as retirement plans or if you want to start investing elsewhere. Any financial advisor would tell you your long-term personal finances and growth depend on more than just what you put in a savings account. Read on to learn how to become rich fast, according to financial experts.

How To Become Rich Fast: 9 Ways

The problem with the idea of getting “rich,” though is that it takes a lot of time and effort. Get-rich-quick schemes are almost always nothing but a way to prey on those who are trying to earn more money while struggling financially. Unless you are born into a wealthy family and a large inheritance is passed to you, you will likely have to become rich through a combination of hard work and financial diligence. Here are nine ways experts advise on how to become rich fast:

1. Avoid or pay down debt
2. Spend intentionally and minimize debt
3. Start saving ASAP
4. Invest in a diversified portfolio
5. Work on your career
6. Start a side hustle
7. Build an emergency fund
8. Invest in your financial education
9. Avoid get-rich-quick schemes

1. Avoid or Pay Down Debt

Debt, especially high-interest debt, is not necessarily bad in all instances, but it is something to be avoided most of the time. For instance, student loans can be beneficial if the principal and interest rates are not excessive and they help you pursue a lucrative career.

“Some experts would contend that student loans are bad debt, but I disagree,” said Robert Johnson, chairman and CEO at Economic Index Associates. “I would categorize modest student loan debt as being ‘good debt.’ In my opinion, student loans get a bad rap.”

Again, the emphasis is on how you use them. Student loans can certainly be bad if the numbers don’t work in your favor. “There is no doubt that the system has been abused and that some students have accumulated a mountain of debt and have earned degrees that simply won’t provide the earning power to pay that debt back,” Johnson said.

Johnson also emphasized that credit card debt is always bad debt and should be prioritized over student loans. Ariel Acuña, founder of independent wealth management firm LTG Capital LLC, recommended putting at least 20% of your paycheck toward debt if you have it.

2. Spend Intentionally and Minimize Costs

If you want to become rich, it’s important to minimize your costs and be more intentional with your spending. Spending intentionally and minimizing your costs will require you to keep a budget.

In doing so, you can keep track of exactly how much you spend and where you spend it. Acuña recommends a checklist of how you will spend. “Develop a prioritized checklist for how you’re going to spend your paychecks when you receive them.”

Your goal should be to minimize costs as much as possible so you can put that money toward building wealth.

3. Start Saving ASAP

Laura Adams, MBA, award-winning personal finance author and expert with Finder, said that the sooner you begin to invest, the more wealth you can build over time.

“For example,” Adams explained, “Sam begins investing at age 35 and stops at age 65. Over those 30 years, she invested $250 monthly and received an average 7% return. Her account balance is less than $300,000 at retirement. A second investor, Taylor, begins investing at age 25 and stops at age 65. He also invests $250 monthly, receiving a 7% return, but builds approximately $622,000 after 40 years.”

Adam points out, “By investing ten years earlier than Sam, Taylor retires with over $300,000 more to spend, even though he only invested $30,000 more ($250 x 12 months x 10 years) than Sammy. Taylor has more because his money has more time to compound and grow.”

4. Invest in a Diversified Portfolio

While there are limits to how much you can put into a 401(k) or IRA, those limits are high enough that many people are not able to reach them. And if you do, you can always invest more in a taxable brokerage account. Thus, if you want to become rich, you should invest as much as you can — there is no upper limit to that amount.

There are many different investment strategies, but most experts recommend putting most of your money in the stock market to get rich. Some recommend a smaller portion of real estate or even speculative investments. Jeff Burrow, founder and lead advisor at Sierra Ocean, recommends a portfolio of 65% stocks, 25% real estate and 10% speculative asset of choice.

You will want to invest that money in a tax-advantaged account such as a 401(k) or IRA first. That will help you minimize your tax bill and thus increase your returns over time. If you manage to max out all tax-advantaged accounts, you can move to a brokerage account.

5. Work On Your Career

There is no substitute for higher income. As they say, there is only so much you can cut in terms of expenses, but there is no limit to how much your income can increase, at least in theory. “Ensure that as you advance in your career/business/main occupation, you always save more than you spend as you earn raises and increase your gross income,” Burrow said. “Lifestyle cost creep will absolutely wreck a plan to get rich as quickly as possible.”

Of course, increasing your income will be contingent upon the job you have. Those working hourly jobs, for example, may have minimal leverage to increase their income. But if it is possible for you to move up the corporate ladder, that can be a powerful way to become rich as you will be able to save and invest more.

6. Start a Side Hustle

The idea of a side gig or extra work is nothing new, but if you have some extra time and you can pick up some extra work for a few hours a week, that can be a powerful way to increase your income. Gig economy work such as Uber and TaskRabbit make it easy to find flexible work. And there is no shortage of lists of types of side hustles to be found online.

Finding a side hustle is sometimes easier said than done, but this can be extra money that you can continue to invest further. “Immediately go try and find two to three side hustles that can boost your take-home income. Save as much of that as you can,” Burrow said.

7. Build an Emergency Fund

Adams said that although it’s wise to start investing as soon as you can, if you lack a healthy cash reserve, you should make building an emergency fund your top financial priority.

“Emergency funds help you manage unexpected expenses and hardships, such as a job loss, home repair or medical bill,” said Adams. “A good savings target is three to six months’ worth of your living expenses — such as housing, food, utilities and debt payments. For example, if your monthly living expenses total $4,000, consider accumulating at least $12,000 in savings.”

8. Invest in Your Financial Education

“Being financially literate means you have money skills, such as budgeting, saving and investing and continue learning about personal finances,” said Adams. “It allows you to make wise decisions that improve your net worth over time and avoid money mistakes that could hurt your future financial security.”

Various ways exist to increase your financial education, including subscribing to financial newsletters from trusted sources, listening to financial podcasts and reading personal finance books.

9. Avoid Get-Rich-Quick Schemes

“A get-rich-quick scheme is any promise of earning or receiving money easily and quickly,” explained Adams. “Criminals may use them to lure you into paying for a scam that hurts your finances.”

Be wary of anyone who promises that their product or service will help you become rich with little to no risk because it’s almost certainly a scam. Always research the individual or company that is offering the opportunity to verify their credentials and track record with other investors.

Final Take To GO 

In reality, there are arguably no secrets to becoming rich. Time-tested approaches are generally your best bet, and our experts confirmed that. Whether it is putting money into retirement accounts, investing in stocks and bonds or just paying off your debt, there are many small steps you can take now to become rich. 

Bob Haegele and Cynthia Measom contributed to the reporting for this article.

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