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TOM@RICHHABITS.NET
What if I told you that you can become wealthy while taking very little risk?
In my five-year Rich Habits Study of the daily habits of the rich and poor, I learned that self-made millionaires created their wealth in one of four ways:
#1 Saver-Investor Path – Save 20% or more of your Net Income and consistently/prudently invest those savings. In my Rich Habits Study it took on average 32 years to accumulate an average of $3.3 Million.
#2 Big Company Climber Path – Devote your career to climbing the ladder of one or two large companies. In my Rich Habits Study it took an average of 20 years to accumulate an average of $3.4 Million.
#3 Virtuoso Path – Become one of the top experts in your field and in your industry. Virtuosos may be Knowledge-Based or Skill-Based. Virtuosos receive a premium for their knowledge or skills. In my Rich Habits Study it took an average of 21 years to accumulate an average of $3.7 Million.
#4 Dreamer-Entrepreneur Path – Pursue some dream or business you are passionate about. In my Rich Habits Study it took an average of 12 years to accumulate an average of $7.5 Million
Lowest Risk Paths
#1 Saver-Investor Path – Although you do have to invest your savings, if you do so prudently, you can diversify your holdings and minimize your risk. Prudent investing can be done either by yourself, which requires investing time in becoming knowledgeable about investing, or by higher experts, such as Certified Financial Planners.
#2 Virtuoso Path – The primary risk Virtuosos must take to become experts in their field and industry are taking on debt for advanced degrees or for coaches/mentors. The risk, however, is minimized due to the fact that Virtuosos are paid a premium for their knowledge or skills and that premium in income they receive is so significant they are able to pay off that debt within a few years.
Tom Corley is an accountant, financial planner and author of “Rich Kids: How to Raise Our Children to Be Happy and Successful in Life”, “Effort-Less Wealth”, “Change Your Habits Change Your Life”, “Rich Habits Poor Habits”, “Rich Habits: The Routines Millionaires Use Daily to Build Wealth” and “Rich Habits Wealth Academy.”
