Who doesn’t dream of getting rich quick from nothing? Contrary to what you might think, anyone can get rich, regardless of their situation, if they are truly motivated. However, there are no miracle recipes. So, we are going to give you some tips that can help you become financially free and become rich from scratch, while avoiding falling into traps and scams.
Nowadays, there are many activities that allow anyone to become rich. In this article, we have selected 10 serious ways to get rich from the ground up or even from practically nothing. Discover with us these 10 ways to get rich in 2022.
Create a business
Starting a business is probably one of the most efficient ways to become rich very quickly as shown by the examples of “success stories” of entrepreneurs who started from scratch and managed to build empires, such as Travis Kalanick with Uber or Elon Musk with PayPal and then Tesla.
However, to put all the chances on your side before creating your company, you should be able to validate the following points:
- It is easier to succeed when you know your field of activity.
- Sell a product or service that meets the demand: if you sell sand in the desert it will be difficult to develop your sales.
- The economic world is constantly changing, so it is important to review your strategy regularly in order to avoid having to constantly adapt.
- In order to grow successfully, it is important to hire quality teams that will drive the business forward.
What are the expected returns?
Returns on investment vary greatly depending on the company and the economic situation. But, in general, it is the option that can be by far the most profitable because it is possible to create a company from scratch with a few thousand euros that can be valued at several million or even several billion euros after a few years of existence as shown by some successful start-ups, such as Instagram, Twitter, Deliveroo or Just Eat.
Investing in publicly traded companies
You can also become rich thanks to the stock market (/10-tips-to-start-investing-in-stock-market/), by taking advantage of the success of entrepreneurs who have listed their companies on the financial markets, as shown in recent years by the increase in the stock market prices of companies such as Facebook, Apple or Netflix.
This is the strategy followed by the American investor Warren Buffett, for example, who became one of the richest men in the world, whose investment company Berkshire Hathaway, listed on the New York Stock Exchange, is now worth several hundred billion dollars.
How much profitability can you expect?
Returns on investments in listed shares vary greatly. But, historically, taking into account the dividends received by the shareholder, the annual return is between 4 and 8% per year over the long term.
Buy crypto currencies
To get rich quick, you can also buy crypto currencies, like Bitcoin (BTC), Ethereum (ETH) or Ripple (XRP) for example. Indeed, despite the multiple bad advertisements made against these assets, they are still very lucrative. The explosion of cryptos following the health crisis demonstrates the power of these assets.
Moreover, some investors have benefited greatly from it in the image of the Winklevoss brothers, who bought in 2013 for about 10 million dollars of Bitcoin, making them in 2017 the first billionaires of this crypto-currency.
How much profitability can you expect?
Even if the profitability figures are impressive, you have to keep in mind that you can be rich afterwards. Anyway, if we take Bitcoin as an example, over the last 5 years it has gone from $300 to about $13,000 today, an increase of more than 4,200%, an infinitely higher profitability than a publicly traded stock investment. And on other crypto-currencies, such as Ethereum or Ripple, the progressions have been even higher over the same period of time.
Invest in oil
To get rich fast, you can also invest in oil, following in the footsteps of the American John D. Rockefeller, who started from nothing and made a fortune in black gold in the late 19th century. A fortune estimated at more than 300 billion dollars today.
Investing in oil can be done in many different ways. However, the fastest and easiest way is to invest in oil online. This can be done either by buying shares of publicly traded oil companies (Royal Dutch Shell, BP, Exxon Mobil, Eni, Total SA, Chevron Corporation for example) or with oil related ETFs such as Vanguard Energy ETF (VDE), VanEck Vectors Oil Services ETF (OIH), United States Oil Fund (USO) for example.
How much return can you expect?
Returns on investment vary greatly depending on the company. Indeed, if you invest in a small oil company that makes a major discovery overnight, its stock price will skyrocket. But the other side of the coin is that this type of investment is riskier than investing in a major oil company, which generally posts a return in line with the stock market, i.e. between 4 and 8% per year in total return, including dividends.
Investing in gold
Gold is also an investment medium to consider for getting rich quick. As with oil, this can be done in many different ways. However, the easiest way to do it is to invest online. You can do this either by buying ETFs that replicate the price of the yellow metal, or by investing in shares of publicly traded mining companies such as Newmont, Agnico Eagle, Gold Fields for example. Moreover, as proof that it is a good investment, the investment company of billionaire Warren Buffett is invested in the number 1 in the sector: Barrick Gold.
How profitable can you expect to be?
It is very difficult to answer this question because everything depends on when you buy and sell gold. However, we can take an example, with an investment of 100 dollars made at the beginning of 2020.
Gold started the year at around $1,550 per ounce, and is currently trading around the $2,000 per ounce mark, an increase of almost 30% in less than a year.
Becoming a Forex trader
Trading in Forex, the foreign exchange market, is also recognized as one of the fastest ways to accumulate financial wealth in a short period of time. The potential for profit generation offered by the foreign exchange market is virtually unlimited, due to the possibility of using high leverage (over 100) to multiply the amount of one’s investment.
Some Forex traders have managed to earn real fortunes in a short period of time by brilliantly using this financial technique of leverage, like the American billionaire George Soros. That being said, the currency market remains a dangerous game because it is still difficult for individuals to accurately anticipate the future evolution of exchange rates. Moreover, if you are wrong, using leverage can be devastating as you can lose more than your initial stake.
How much profitability can you expect?
The profitability is very variable and depends above all on the quality of your trading because everything will depend on the price at which you buy and sell your currencies. We can however take an example, with an investment of 100 dollars made at the beginning of the year 2020 in the EUR/USD parity.
The EUR/USD started the year around 1.11 and is currently trading around the 1.17 mark, up just over 5% in less than a year. But, if you had invested using a leverage of 10, you would have seen a 50% increase and even 500% with a leverage of 100.
Invest in real estate
To get rich quick, you can also choose to invest in real estate. This is the path that Donald Trump chose to become a billionaire in the United States. It is even more accessible as you can use the leverage of real estate credit to buy properties without having all the necessary capital at the beginning.
Some of these companies include: Equinix, Digital Realty Trust, American Tower Corp, Prologis, Mercialys, Unibail-Rodamco, Argan, Tour Eiffel, Immobilière Dassault, Covivio and Carmila.
Although REITs and SIICs are listed shares, they do not always move in the same direction as the stock market. In addition, their dividend yield is higher than the market average.
How much profitability can you expect?
According to the IEIF institute, the profitability of real estate companies listed on the stock exchange has been more than 11% per year, including dividends, over the last 10 years, which is much higher than a traditional investment on the stock market.
To illustrate this, if we take the example of an investment of 10,000 euros, after 10 years, your final capital would today be slightly more than 28,000 euros, i.e. a multiplication by a ratio close to 3.
Investing in private equity
Another way to get rich is to bet on private equity, also called venture capital, which has made the fortune of many American financiers, such as Jerome Kohlberg, Henry Kravis and George Roberts, who created the company KKR.
How profitable can you expect to be?
Returns on investment vary greatly depending on the management qualities of the managers at the head of this type of company, but also on the evolution of the economic situation. But, generally speaking, according to a study by the professional organization France Invest, average annual returns on private equity oscillate around 10% over the medium and long term, which represents a doubling of your invested capital every 7 years or so.
Investing in wine
Another way to get rich is to invest in wine, as some very rich people do, like the Rothschild family in the Bordeaux vineyards in France with their Lafite Rothschild or Mouton Rothschild wines.
The classic wine investment is to buy bottles of wine and store them, waiting for them to increase in value. However, this is far from being the most practical way to invest in wine.
How profitable can you expect to be?
The profitability for this type of investment depends on many parameters. Nevertheless, investing in wine is profitable, as long as you invest in a long term logic. According to Liv-Ex, the leading wine index, over the last 5 years, the average performance of the wine indexes has increased by almost 30%, i.e. a performance of about 6% per year. This means that a €10,000 investment in wine 5 years ago would be worth €13,000 today.
Investing in art
Investing in art can also be very profitable. But you still need to know how to go about it. Some French billionaires have taken the risk, such as the Pinault family, owner of the luxury group Kering (Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen and Brioni), with the auction house Christies or Patrick Drahi with Sotheby’s.
However, not everyone, including most rich people, can afford such companies, which are essential in the art world.
However, rest assured, it is still possible to invest online in art, through shares of companies specialized in online auctions. We can for example quote Art Price listed on the Paris Stock Exchange on Euronext or eBay in the United States on the Nasdaq.
How profitable can you expect to be?
According to the global price index calculated by Artprice, by investing in art, one can expect an average annual return of about 10% over the long term, i.e. for a minimum holding period of 10 years. In other words, an investment of 10,000 euros made a decade ago would be worth about 26,000 euros today.