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What is one strategy to become wealthy in 5 years?
To help you become wealthy in 5 years, we asked successful entrepreneurs and investors this question for their best insights. From becoming financially literate through self-education to investing in your skills, there are several tips that may help you become wealthy in the future.
Here are fourteen strategies to become wealthy in 5 years:
READ ALSO: Closing the wealth gap, one female entrepreneur at a time
We’ve all heard the stories about people who won the lottery or got million-dollar salaries playing professional sports but then were broke within years. One of the most important factors in both becoming wealthy and staying that way is educating yourself on how to be very financially literate. It’s no good to just amass money if you don’t know how to hold onto it. There are plenty of books, such as Rich Dad, Poor Dad by Robert T. Kiyosaki, that can help you get started. There are also online courses that can help you to become more financially literate. It’s also a good idea to enlist the services of a financial advisor. Even if you’re financially educated yourself, a financial advisor is an expert in that field and can help you to grow your money and maintain wealth better than you may be able to do yourself.
Dave Rietsema, Matchr
Spend less, earn more, invest the difference. That’s the basic wealth equation. Spending less is the most powerful and easiest strategy. If you manage to save $500 in a month, that means you are saving $6,000 in a year and $30,000 in 5 years. All that just by finding ways you can save ONCE. Earning more is powerful too, but harder. Ask for a raise, apply to 100 jobs with better pay than your current one and start generating a side income with freelance work or starting a business. The most important thing is to avoid spending more as you start earning more. Don’t upgrade your home or your car. Lifestyle inflation will keep you poor. Investing is what will make the whole difference. Invest as much as possible every single month and with time, you will be rich from compound interest. You can invest in stocks and other assets or put the money into your personal business to make it grow faster. Investing in your own business can bring large returns, even within 5 years.
Paw Vej, Financer.com Ldt
You can receive all of the targeted financial advice in the world, but the best way to become wealthy in five years is by doing something that you truly love. When you are invested in and enjoy your work-related duties, then it’s no longer “work,” but an extension of who you are as an individual. If you’re doing something that is successful and brings in a good income flow, loving the entire process will decrease the chances of burnout and increase your productivity.
Lindsay McCormick, Bite
Buying, developing, and selling real estate is a tried-and-true method of amassing a sizable cash position. One of the most important aspects is that borrowing money allows you to gain leverage on your venture. Assume you borrow $200,000 and contribute $50,000 of your own money to purchase a $250,000 house. The property is then developed and sold for $400,000. The property’s worth has climbed by 60%, while your $50,000 has grown fourfold to $200,000. You must carefully pick and develop the correct properties in the right regions. You are vulnerable to property market booms and busts. However, in the long run, this is a tried and true method of accumulating wealth.
Veronica Miller, VPNOverview
If you can make consistent investments in stocks over a long period of time and reinvest the dividends, you can amass a sizable store of wealth. Of course, stocks can fall as well as rise, and many small investors become disheartened when their portfolio plummets. However, in the long run, equities are just as good as real estate and far more liquid. For those with cash and a strong stomach, stock market crashes represent excellent buying opportunities.
Edward Mellett, Wikijob
One strategy is to always focus on contemporary (and near-future) areas of growth. You can identify these sectors by how much coverage they receive in the media and large capital inflows.The days of real estate flipping or drop-shipping are simply no longer tenable, as these spaces have simply become too saturated. Focus and (get good get) at areas of high growth such as cloud storage, cybersecurity, cryptocurrencies, decentralized finance (DeFi), and NFTs. You don’t have to be excited about these topics per se but if becoming wealthy in only 5 years is your goal it is well worth your time to look into and research through the potential of such industries and technologies.
Peter Bryla, ResumeLab
Create an eCommerce brand that fills a market need. Today, there is limitless potential to be innovative, come up with product ideas, put them into production, and sell to your customers seamlessly with online eCommerce platforms like Shopify. People are eager to try new products. Come up with something cool and innovative and keep working and improving it. If you create something unique that customers love, you will be on your way to wealth and financial freedom.
Ann McFerran, Glamnetic
Treat your finances and investments as a business, performing quarterly reviews and adjusting as necessary. When you want to hit your wealth-building goals on a tight timeline, you need to remain aggressive in your short-term goals to ensure you’re maximizing the money you’ll have in 5-years’ time. Your short-term goals should support your long-term goal, serving as a progress report on how well you’re budgeting and choosing the right investments.
Every 90 days, you’ll look back on the previous 90 and determine your biggest wins, fails, and areas of improvement. Once you understand what went right and wrong, it’s time to build a rock-solid plan for the next 90 days. To build true wealth in just 5 years, your investment portfolio should reflect the current market behavior. A 90-day revisit helps boost long-term motivation as you adjust your strategy to account for short-term market shifts.
Cliff Auerswald, All Reverse Mortgage
Set up a website for something you’re passionate about. It can really be anything, but make sure it’s something you’re comfortable writing and thinking about daily for the next few years. At first, you should produce useful, engaging content (mainly blog articles) about your chosen niche. As you start to track website visitors and learn keyword research, you’ll be better able to write about engaging topics. Once you hit a certain threshold of viewers, you can sign up for affiliate programs through websites like Amazon, though there are many others. Promote these programs on your website, focus on gaining more viewers, and watch your income skyrocket over time. It takes consistent work, but that passive income can become very lucrative within five years.
Jeffrey Gabriel, Saw.com
Wealthy people often have a side hustle as a second source of income. This is not just useful to earn more money, it also protects your cash flow, which means that you can pay your bills on time while retaining money for saving and investing. Creating multiple income sources through passive income strategies like rental income from real estate or dividends is a way of maximizing returns so that you can work decreasingly hard over time.
Hakeem Shittu, iPad Recycle
We look to those who are doing what we want to do and network as much as possible with wealthy mentors! Connecting with those that have little time, especially to meet and help strangers can be tricky but taking bold consistent action is key. Consider ways that you can contribute to the relationship in every exchange and eventually people respond. Whether you offer them lunch at their favorite swanky spot, sponsor their podcast or support causes that they believe in, successful people will notice you if you are adding value. As Jim Rohn says, “You’re the average of the five people you spend the most time with.”
Jeff Goodwin, Orgain
Successful leaders thrive because they create a big picture vision for themselves and their business – creating a wealth vision is no different. Use your imagination, think of your dreams and aspirations, and envision the potential and possibility for your future. Then write down your SMART financial goals, such as, “I will be making $100,000/year by December 2022,” and keep that vision in your mind. Let it build your confidence, help you create a daily routine, and reshape your environment for financial future success.
Liz Donahey, Red Pocket Mobile
If you can acquire equity positions in one or more start-up companies, you could make a significant monetary gain if the company thrives and either floats or is sold to a larger enterprise. Only a small percentage of start-ups succeed in realizing big capital gains, therefore the odds are stacked against them. You can, however, use your judgment to determine which business idea and management team are likely to thrive. On this basis, early employees at Apple, Google, and Microsoft became millions.
Jamie Opalchuk, HostPapa
Your skill is something that will always pay you back. The more skills you have, the more you’re open to the source which can help you make money. Hence, investing time in your skill is extremely important even if it’s a couple of hours per day. Try with starting what you have an interest in. It can be a hobby which can be turned into a side hustle or just upgrading the talent which you already have. Over a period of time, it’s surely going to help you to become much more wealthy.
Meera Watts, Siddhi Yoga International Pte. Ltd.
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