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How to get rich
1) Marry into wealth
2) Be born into wealth
3) Invest money
There is short and long term wealth. Compounding wealth over the course of 40 years with annual contributions will build long term wealth for retirement. Short term wealth is based a lot on research, timing, and luck. Short term gains taxes will kill you and penny stocks are only for the bold. Lots of money though if you time things right, Dell stock if bought $1,000 when it first issued is worth 35,000% more today! If you knew this you'd be a wealthy man.
4) Working hard often isn't enough.
There are hundreds of millions of people who work hard every day and will never amount to anything and are lucky to make $1mill total their entire lives. You need to set goals, nothing can ever be enough, and you can never settle. You have to be smarter than everyone else.
5) Luck plays a big part as does timing.
Sure it may take a visionary to know when something may become big but many visionaries each day fail and you don't hear about them because they lost all their money in their vision. You of course hear about the big names like Gates, Mark Cuban, Google Guys, etc who came at the perfect time. Part of that is luck and part is being smart. I'm sure even Mr. Gates didn't know the computer would be this big. It also takes a visionary to start an idea but a soldier to stay the course. Look at how many search engines failed before Google, how many pc makers failed around Dell, etc.
6) Know business.
The vast majority of people I know who are wealthy have some association with business and knowledge of business. Whether they took classes in college, have an MBA or whatever, it gives them an upper hand. Knowledge of business allows you to work in fields of money if you so desire or allows you to build your own business and empire. It is important to not only know your business but know your market and have a solid business plan.
7) Real estate is a good investment. With historic averages >8% it is a pretty good and stable investment. The day of the speculator I think is dead however, there are still markets to get into but lot of overvalued markets now as well, especially in LV, Cali, SF, etc. Land is always a good investment because you can never get more land. This land I was looking at in Ocala FL is now worth 300% when I was thinking of buying it, doh! I should have bought 50acres and sold it, I'd be up over half a mil. Land in smaller states such as CT, NJ, RI etc are also at a big premium. Big developers are paying people small fortunes for land to build condos on.
8)Money breeds money. Sure you have a higher lifestyle when you have money but still. Look at all the moviestars for example buying and selling homes like it was a shirt for us. They buy for $15mil, sell 5 years later for $30mil, bam big profit. They can afford the $15mil house though to make the other $15mil. It is much easier to make money when you have a decent amount and people will cut you breaks, deals, etc to have your money invested with them.
9) Low overhead is a good business. Google is a good example, they don't make a single thing. Everything is virtual, they don't have to ship products, manufacter anything, they sell space on a virtual billboard for billions of dollars. You also have less to worry about like product support. An example of a high overhead business would be a restaurant because you have to buy food, prepare it, clean the area, wash dishes, and make sure everything is consistantly good so the customers don't go elsewhere. Thats why so many restaurants fail and their profit margin is generally so low. It is a challenge to consistantly keep packed.
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) so how would I know...
