That’s right. To be rich at a young age, try to find a job that offers a lot of room for growth and advancement so that your income is regularly growing, even if that means working for yourself. Marry a billionaire, or perhaps even more rewarding, divorce one. Buy an index fund weighted to fundamentals. Microsoft co-founder and Berkshire board member Bill Gates, left, and Berkshire Hathaway Chairman... [+] and CEO Warren Buffett, center, appear during an interview with Liz Claman on the Fox Business Network in Omaha, Neb., Monday, May 2, 2016. Wait for inflation to rise before buying TIPS. While getting rich is by no means easy, there are a few paths that are proven to make you rich over time assuming you put in the time, effort These days, I also edit personal finance and fintech coverage in Forbes and coordinate outside tax, retirement and personal finance contributors to Forbes.com. By using our site, you agree to our. John Bogle, founder of There's no straightforward way to guarantee yourself a rich future, but these 7 strategies can help you do it while you're still young. I’m the Washington D.C. bureau chief and an assistant managing editor of Forbes. Sign a living will, health care proxy and power of attorney, even if you’re still healthy. Benjamin Graham: “Patience is the fund investor’s single most powerful ally.”. Invest globally for currency diversification. Never ignore a 1099, even if it’s wrong—the IRS won’t. Show me the short-sellers’ yachts.”. After creating 18+ successful products of our own, we’ve developed a system that guarantees your business idea will pay. Use limit orders when buying small-company stocks with low trading volume. Factor your individual health and life expectancy into your decision on when to take Social Security. Save on a master’s—for yourself or kids—by earning it in Britain in one year. All Rights Reserved, This is a BETA experience. Consider, too, what wealth means to you. Open a spousal IRA for a stay-at-home husband or wife. Review your monthly expenses and determine where you can find additional cash that you can invest. "It enlightened and triggered me more to save more than I do. You can email me at jnovack@forbes.com and follow me on Twitter @janetnovack. 1-time salary increase of $5000 invested and compounded after 40 years: 1,398,905.20! Support wikiHow by Benjamin Graham: “It is absurd to think that the general public can ever make money out of market forecasts. If you really can’t stand to see another ad again, then please consider supporting our work with a contribution to wikiHow. Add a personal items floater to your homeowner’s insurance to cover collectibles. John Neff: “When you feel like bragging, it’s probably time to sell.”, Warren Buffett: “The risks of being out of the game are huge compared to the risks of being in it.”. Insure your home for its replacement value; buy flood insurance if there’s a risk of water damage. There are two types of IRAs - a Simple or Traditional IRA and a Roth IRA. I'm in my final year of school, and I am getting a Bachelor's of Commerce. by Fred Schwed Jr. Run from a pitchman “guaranteeing” high returns. What happens to property if someone dies without one (intestate) varies by state and might not be what you would want. Approved. Do you want $1 million (or more) in annual earnings, $1 million in assets, or $1 million in net worth? Maybe you have a family member or know a community member who has done well in business. Let's start by looking at the math. Have contributions to savings automatically deducted. If you earn too much to contribute to a Roth IRA, fund a nondeductible IRA and convert it. If your spouse dies, file an estate tax return to preserve his $5.25 million estate/gift tax exemption (rising to $5.34 million in 2014) for your own use later. Usually a single income will be insufficient to help you become a millionaire, so think about varied income streams, like different businesses and investments. Invest the amount that would have been used for a car payment. You should fund your IRA throughout the year, not waiting until the April deadline. Even committed indexers should use actively managed funds to buy municipal and high-yield bonds and value stocks. You'll also get yourself a neat new hobby and gain a very useful and valuable skill. View collecting as a hobby first and investment second; psychic returns can make up for a lower average return than in stocks. Take time to consider the risks of any investment before buying. 401(k) plans are provided by private employers, 403(b) plans are provided by non-profit organizations and 457 plans are provided by government agencies. Set investing rules for yourself that block impulsive decisions. We all wish we could be wealthy. Vanguard There are no “secrets” to getting wealthy overnight. Buy companies with high ratios of gross profits-to-total assets. I'll show you excatly what steps to take to become rich… Take $500,000 per couple in gains on the sale of your home, tax free. Keep this in mind: poor people buy things from rich people and rich people buy investments to make themselves richer. Peter Lynch: “Never invest in any idea you can’t illustrate  with a crayon.”. Most wealthy individuals will tell you one of their greatest keys to success has been taking calculated risks. Warren Buffett: “Diversification is a protection against ignorance.”. During my three decades with Forbes, I've reported extensively on taxes -- tax policy, tax planning, tax shelters and tax evasion. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/c\/cd\/Be-Rich-at-a-Very-Young-Age-Step-1-Version-3.jpg\/v4-460px-Be-Rich-at-a-Very-Young-Age-Step-1-Version-3.jpg","bigUrl":"\/images\/thumb\/c\/cd\/Be-Rich-at-a-Very-Young-Age-Step-1-Version-3.jpg\/aid457456-v4-728px-Be-Rich-at-a-Very-Young-Age-Step-1-Version-3.jpg","smallWidth":460,"smallHeight":345,"bigWidth":"728","bigHeight":"546","licensing":"