How to become a wealthy and successful person. 3 best ways

How to become a wealthy and successful person. 3 best ways

Working in a hired job and hoping to become a wealthy and successful person is at least naive. The management and owners of the companies are not interested in sharing the money with hired employees. Such is human nature. Most likely, the employee will reach the ceiling of the average wage, which will be enough to pay bills, food and the ability to postpone a certain amount. On large purchases, such as a house, apartment and a new car cannot be considered.

Exceptions are when an employee reaches the top manager or director position with a million annual salary in a large company. However, these cases are very rare. In the pyramid of the distribution of world wealth, hired employees are in the lowest positions. To become a wealthy and successful person, you need to act in your free time from hired work.

Who works all day, there is no time to earn money

John Rockefeller

Below we look at ways that allow you to achieve success and wealth. All wealthy people passed through these paths.

Entrepreneurship

Entrepreneurs establish a business that promotes and sells marketable services or products to customers. A business will make a profit and help an entrepreneur to become wealthy and successful if you will work hard for at least 12 hours a day, using the right development strategy, marketing and building relationships with your target customers.

The meaning of business is to create value for society and to make money on it. Value is a quality product or service that is in demand. People buy value by paying for it with their money. Thus, over time, the business will bring a huge profit, which will be much more than the salary of an employee or the profitability of a bank deposit.

Entrepreneurial activity is one of the best ways to become a wealthy and successful person. There are many opportunities for self-realization, creativity, personal growth and competition. The entrepreneur himself manages business processes, decides whom to hire and dismiss and determines the direction of business development.

An entrepreneur has a stronger motivation and interest in working than an employee, because an entrepreneur develops his own business, not someone else’s business, and works solely for his own wealth.

Examples of people who have become wealthy and successful in doing business:

  • Elon Musk,
  • Donald Trump,
  • Carlos Slim,
  • Bill Gates,
  • Larry Ellison,
  • Jeff Bezos,
  • Amancio Ortega.

Investing

Investing is a special case of business and a great way to become a wealthy and successful person. Serious investor practically does not differ from the businessman.

I can become a more successful investor, because I am a businessman, and I can achieve better results as a businessman, because I am an investor

Warren Buffett

An investor does not create a new business from scratch, but invests in already established companies or assets. By investing in a company, an investor becomes a co-owner and shareholder. The company can pay to shareholders a portion of the profits in the form of dividends, reinvesting the rest of the profits into themselves.

Reinvestment increases sales and profits, provides access to new markets, increases production capacity, etc. Without reinvestment, the growth of the company is impossible and, therefore, the growth of stock prices is impossible. The investor becomes richer, becoming a wealthy and successful person if the company and its intrinsic value grows.

An investor can withdraw from the shareholders by easily selling the purchased stocks at a profit. For example, stocks have grown in price and become overvalued. It makes sense to sell them and invest into another successful company, whose shares are now undervalued.

Choosing candidates, investors read the consolidated financial statements, which contain valuable information. Use profitable investment strategies based on analysis of profits, cash flows, assets, management, etc.

Examples of people who have become wealthy and successful through investing:

  • Warren Buffett,
  • Charlie Munger,
  • Peter Lynch,
  • Philip Fisher,
  • John Bogle,
  • Carl Ichan,
  • Bill Ackman.

Trading

Traders trade financial instruments (stocks, bonds, futures, currencies, funds) on the exchange and over-the-counter markets, following the signals of a profitable trading strategy or a variety of strategies.

For example, every day, before the opening of the exchange, the trader checks whether today it is necessary to buy or sell assets according to the rules of the trading strategy. Sends the appropriate buy or sell orders if necessary to buy or sell. Orders are sent through the trading terminal at the broker. Manually or automatically, with the help of trading robots, if the trader trades algorithmic trading strategies.

Trading is also a good way to become a wealthy and successful person. A trader statistically predicts the future movement of prices and earns on the difference between the prices of buying and selling. A single transaction can be profitable or unprofitable, but the final total profit gives many transactions.

For example, buying stocks of a company, the trader does not care what the company does, whether it will earn profits or go bankrupt. The trader expects the price of the purchased stocks will rise and he will sell them at a profit. What are the reasons for the rise in prices – it does not matter.

Some traders who have become successful and wealthy by trading:

  • Paul Tudor Jones,
  • Richard Dennis,
  • William Eckhardt,
  • Ed Seykota,
  • John Paulson,
  • Steven Cohen,
  • Salem Abraham.

Conclusion

Considered 3 ways will help you become a wealthy and successful person, in contrast to hired work or bank deposits. Which of these three methods is more suitable – decide by yourself. You can combine them together.

Investing and trading can be combined with the main work and this is an advantage. You do not risk with hired work to create a business from scratch and dedicate it to working time.

Working on hired work, you can invest and trade, gradually making personal capital. When capital becomes big enough, you can quit from hired work and fully dedicate yourself in investing or trading, or devote your time and energy to other vital interests.

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