The 3 Most Effective Ways to Becoming Rich

It always amuses me to read the advice from millionaires on how to get rich. Rarely do any of them actually advise on the strategies they used themselves to obtain their level of success. Rather they all spit out the same old clichés that haven’t ever made anyone rich before.

For starters they talk about being frugal. Stop paying $4 per day for a coffee, get rid of cable or live below your means. I can tell you now by looking at the BRW Young Rich list that no-one made it on there by having holidays in a backpackers rather than staying in more luxurious accommodation.

When it comes down to it people on the Young Rich list or any rich list for that matter get there through either business, property or being an actor/sportsperson. This post is only going to talk about the first two. I’ll leave it up to you to fine tune your athletic or singing abilities.

Number 1 way of becoming rich

The number one way of becoming rich is by starting a business. Or multiple businesses. And to get more specific make it a technology or retail business. Technology businesses made up 21 of the 100 Young Rich list members whilst retail made up 10.

That’s 31% of the richest young people in Australia had a tech or retail business. Think of businesses such as Kogan, Menulog, Canva and Campaign Monitor. They were all able to solve a problem faced by consumers and offer the solution to millions.

Kogan for example started a business offering cut price TV’s online. The new rules of wealth mean you that you have to reach as many people as possible for as cheap as possible. Sure, he could have taken the old school approach of Dick Smith and Harvey Norman and set up a retail shop front.

But this would have limited his reach to a few hundred thousand people at best. Online allowed him to be Australia wide. Whether the customer was in Perth or Sydney Kogan was able to offer them the same low cost T.V. No staff, no huge overheads just a T.V and some customer service.

Gone are the days of opening up a modest retail shop in one location and expanding across the universe. This may have worked for McDonalds in the 50s but certainly not now.

Number 2 way of becoming rich 

The second vehicle of choice for achieving riches is through property. And no I’m not talking about building an investment portfolio where you can renovate a few properties a flip a profit. I’m talking about the F*ck you money that comes from property developers like Harry Triuboff and Donald Trump. To play it this elite level you need 3 attributes.

  1. Vision

  2. Tenacity

  3. Time

Entrepreneur and property developer, Tim Gurner, who is CEO and founder of Gurner executes on the above with precision. In 2014 he had 2050 apartments being built across Queensland and Victoria and sold more than $1.1bn.

The plan for Gurner is quite simple. Buy sites within two kilometres of CBDs and target 25 to 40 year olds because they go onto to buy similar properties. But it can take a lot of time to pull off. Especially when dealing with councils and getting approval across the board.

Harry Truboff is famous for many disputes with councils and government holding up the progress of his developments. Donald Trump takes a networking and wine and dine approach. When he built his empire in the 70s he negotiated tax concessions with the Mayor of New York as he believed that he was bringing in much needed tourism for the city at the time.

The choice is yours. If you want to become rich and live the life you’ve always wanted you have one of three choices. If property development isn’t for you and you’re not the sporty type, then perhaps it’s time to start thinking about building your own business. But to do that, you need to solve a problem .

 

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