How do people actually get rich?
There are only a few proven paths to wealth. Learn what will work for you.
How do you become a millionaire and get rich?
What does your dream life look like? Are you enjoying spontaneous dinners out, taking incredible vacations, and starting a family, all while still supporting the causes that are important to you? It’s possible if you can build some degree of wealth.
While money isn’t everything, having enough of it frees you to focus on what truly matters—your well-being, relationships, and giving back to your community.
We’re going to focus on the paths to wealth. At the most fundamental level, there are only a few ways to get wealthy.
The Smart Money Management Option
The Real Estate Option
The Entrepreneurship Option
The One Percenter Option
The Work Forever Option
We’ll explain each of these paths and talk about why they work and who they work best for.
Key Principles for Building Wealth
Before discussing the paths, we need to discuss the core principles that apply to all of them. A few key principles will set you up for success if you want to build lasting wealth.
Invest for the Long-Term: Compounding returns are magical. They can create the dream of passive income for you. But they take patience. There are no paths to immediate riches. Avoid influencers who imply otherwise.
Live Below Your Means: No matter how much you make, you will not build wealth if you spend more than you make. We get it; saving can feel like giving up what you want. In reality, it’s not an either-or. You should both enjoy life and build wealth at the time.
Invest in Yourself: Whether it’s skills, education, or self-discipline, improving yourself is necessary to achieve success in any path.
Avoid the Risk of Ruin: Remember Warren Buffet’s first rule: “Don’t lose money.” Don’t put yourself in a position where you could lose everything in one wrong move.
1. The Smart Money Management Option
You don’t need to be raking in hundreds of thousands to use this strategy. You don’t need a finance degree or spend all your free time researching. All you need is a little bit of interest, along with some discipline and consistency.
What is it? It’s all about smart, long-term investing and optimizing your financial situation with a few key strategies.
Why it works: Compound interest. It might not sound sexy, but it’s incredibly powerful. Over time, consistently investing can turn a solid income into serious wealth.
Who does this work for? People who don’t want to work forever are willing to invest a small amount of time learning and aren’t interested in investing huge amounts of time that some of the other options require.
Key Strategies:
Invest regularly in diversified assets (think index funds or ETFs).
Get smart about tax mitigation and leverage tax-advantaged accounts (401(k)s, Roth IRAs, etc.).
Automate everything—transfers to your savings, investments, and bill payments—so your wealth grows on its own.
Maximize time in the market, and do not try to time the market. Don’t let short-term market noise mess with your long-term goals.
This path to wealth is the most reliable and accessible for any one with a middle to high income. It also combines best with other paths on this list. For those reasons, what we focus on primarily on this blog.
2. The Real Estate Option
Real estate investing has created more millionaires than almost any other strategy. It’s a more active approach to wealth-building, but it can pay off big with the right moves.
What is it? Buying properties to rent out, flip, or simply hold onto until they appreciate.
Why it works: Real estate offers more accessible access to leverage (borrowing money to buy assets) and comes with tax perks that many other options don’t have. Smart leverage and tax management can grow wealth fast.
Who does this work for? People willing to put in the sweat equity required to find the right properties, analyze deals, fix up comes, find tenants, and manage the property. People who like to work for themselves have a more entrepreneurial side. People willing to concentrate their risk more on a small number of investments.
Key Strategies:
Buy and Hold: Buy rental properties and let them appreciate while you collect rental income.
House Hacking: Live in one unit of a property and rent out the other(s) to cover your mortgage. Think of it as living for free (almost).
Fix and Flip: Buy distressed properties, renovate them, and sell them for a profit.
Other Strategies: There are many other ways to approach real estate, including wholesaling, short-term rentals (like Airbnb), and commercial real estate. These require more expertise but can offer great returns if you know what you’re doing.
3. The Entrepreneurship Option
Entrepreneurship is another option that’s easier today than probably ever before.
What is it? Building and scaling a business or a side hustle. It’s risky, but if you succeed, there’s no cap on your income potential.
Why it works: When you own a business, you control your earning potential. You also get tax benefits that regular employees don’t.
Who does this work for? Ambitious, risk-tolerant people with a knack for creativity or leadership. It’s perfect for those who prefer to be in control rather than climbing someone else’s corporate ladder.
Key Strategies:
Start a side hustle while keeping your day job to reduce risk.
Leverage digital tools and platforms to scale affordably (e.g., social media, e-commerce platforms).
Focus on high-margin industries like digital products or consulting.
As your business grows, automate processes and delegate to free up your time.
Be prepared to pivot, learn quickly, and embrace failure along the way—it’s part of the entrepreneurial game.
4. The One Percenter Option
This is the path for gunning for the top ~1% of earners. If you can land a job that pays $800k+ a year, you are in the top 1% of California and New York. With a big enough salary wealth-building becomes a lot simpler (shocker, I know).
What is it? Earning enough money that you don’t need complicated strategies to build wealth.
Why it works: At this income level, wealth-building is more about cultivating your career and avoiding mistakes than making every dollar count. Still, smart money management can help you keep more of what you earn.
Who does this work for? People in high-earning professions like medical specialists, law firm partners, and top-level tech execs.
Key Strategies:
Choose careers with high earning potential from the get-go.
Strategically switch jobs and negotiate hard for raises.
Develop hard and soft skills to stay relevant in your field and keep climbing.
Diversify investments once you hit this income level to protect and grow your wealth.
5. The Work Forever Option
Not everyone wants to retire early. If you love your work, there’s no harm in continuing to do it well into your 70s. If that sounds like you, this could be your path.
What is it? Earning a good income and working until you’re... well, really old. As long as you enjoy it and avoid burnout, you’ll be fine.
Why it works: You don’t have to worry as much about early retirement, aggressive saving, and optimal tax efficiency if you plan to keep working and earning.
Who does this work for? People who genuinely love their jobs aren’t looking for a way out.
Key Strategies:
Avoid burnout: You’ve got to keep enjoying your work to make this sustainable.
Choose jobs that balance work you love with good pay.
Pick employers and work environments that match your values, and be ready to leave if the culture turns toxic.
6. The Non-Option: The Lucky Picker
You’ve probably heard a story about someone who got in early on Bitcoin and now owns an island. But for every one of those, hundreds of people are still recovering from their loss on the ‘next big thing’. Don’t gamble on your wealth. Build it strategically.
What is it? Getting rich purely through luck.
Why it doesn’t work: This is gambling, not a wealth strategy. Yes, some people get lucky, but it's not replicable.
Who does this work for? Those 1-in-a-million types who happen to hit the jackpot—literally or figuratively.
Key Strategies (such as they are):
If you’re going to gamble, set strict limits: no more than 5% of your portfolio in speculative investments (crypto, individual stocks).
Keep your lottery spending to $25 a month, max.
Remember that while the allure of getting rich quickly is strong, it’s more often a financial trap than a winning strategy.
Combining strategies
You don’t have to choose just one path. Many people combine strategies to diversify their income and maximize wealth-building potential.
A high-earning professional (One Percenter) might also invest in real estate. An entrepreneur can practice smart money management to build wealth steadily while scaling their business.
That said, start by focusing on one strategy at a time to build momentum. Once you’ve got one working well, you can diversify.
“The successful warrior is the average man, with laser-like focus.” — Bruce Lee.
Choosing Your Path
In the end, the right path for you depends on your personal strengths, interests, risk appetite, and what motivates you. You don’t need to follow someone else’s roadmap—choose the wealth-building strategy that aligns with your life goals and lifestyle.