I spent ten years analyzing how other buyers of time became rich people in our society and found there are generally four paths we all have taken.
Path 1: Dreamer-Entrepreneur Path
The Dreamer Path requires the pursuit of a dream. This might be starting a business. It might involve becoming a successful author, musician, actor, or artist. Or it might be the creation of an app, product, or some unique service that they can leverage their company in the market to extract cash from added value to a significant number of people.
Path 2: Saver-Investor
The Saver-Investor Path is one that almost any person can take. It has only two rules you must follow:
- Save 20% or more of your income by living off of 80% or less of your income, and
- Consistently and prudently invest your savings.
According to government statistics, this chosen path took 32 years to accumulate an average of $3.3 million. This path is not for everyone. It requires enormous financial discipline and a long-term commitment.
Path 3: Big Company Senior Executive
Working for a big company and climbing the ladder into senior management is another path to riches. In most cases, the wealth these self-made millionaires accumulate comes from either stock compensation or a partnership share of profits. This path is also not for everyone. You must devote yourself to one company for a long time. And there are risks: The most significant risk is that you could lose your job.
Path 4: Virtuoso
Virtuosos are people who are the best at what they do or possess knowledge that sets them apart. Becoming a Virtuoso requires an enormous investment in time and often money. Skill-based Virtuosos devote themselves to many years of Deliberate Practice and Analytical Practice. Analytical Practice usually requires the services of a coach, mentor, or expert who can provide immediate feedback. This feedback, in most cases, costs money. Knowledge-based Virtuosos must spend many years in continuous study. Often this requires formal education, such as advanced degrees (Ph.D., medical degrees, law degrees, etc.).
After analyzing my research, I determined there were generally four paths to wealth, which often overlap: the Saver-Investor, the Big Company Senior Executive, the Virtuoso, and the Dreamer-Entrepreneur. You can see there’s more than one way to build wealth — but none of them are easy. Which path will you pursue? Share your thought below in the comment section.