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How to Get Rich: Step by Step Guide For Everyone Based on The World’s Wealthiest People

Important Disclaimers

This financial guide does not constitute financial or investment advice, and is simply for educational purposes.

In addition, your financial advisor may not agree with the information contained in this article.

We encourage you to discuss the ideas contained in this article with your financial advisor.

This guide is not endorsed nor is it affiliated in anyway with any of the names mentioned herein.

All information contained on this article is cited from high authority sources and we encourage everyone to verify the claims by following the links.

Do you want to become a millionaire? How about a billionaire?

The following guide contains lessons, tips and strategies directly from billionaires that can be applied to the everyday person making an everyday income.

In this guide, you will learn:

  • How to increase your income consistently each year;
  • How to live below your means and generate a surplus;
  • How to start a simple, easy side business that can grow into something more significant;
  • Step by Step instructions to invest your money like a billionaire;
  • Common traps that make people poor or hold you back from becoming rich.
Part 1: Lessons From Billionaires
Part 2: Foundations of Finance
Part 3: Leaving The Middle Class
Part 1:

Lessons From Billionaires

How to Get Rich: Lessons From Billionaires

How to Get Rich: Lessons From Warren Buffett

Who is Warren Buffett?

Warren Buffett is widely recognized as the most successful investor of all time.

His fortune is self-made and is one of the largest in the world, built almost entirely from investment activity.

He also holds the record for the largest charitable donation of all time.

Naturally, he tops our list of billionaires to learn from.

Lessons by Warren Buffett on How to Get Rich

Lesson Plan: Warren Buffett
  • Lesson #1 – Invest in Yourself
  • Lesson #2 – Establish Good Habits
  • Lesson #3 – Limit Tuition Cost
  • Lesson #4 – Avoid High Interest Debt
  • Lesson #5 – Invest Consistently
  • Lesson $6 – Hold Forever
Lesson #1:

Invest in Yourself

Warren Buffett says the very best investment you can make is in yourself to improve your own personal earning potential.

That means developing your skills through hands-on experience and education.

It’s virtually impossible for an unskilled worker, earning minimum wage, to become rich.

We will explore multiple ways to invest in yourself in the Part 2 & Part 3 of this guide.

Lesson #2:

Establish Good Habits

How to Get Rich: Establish Good Habits

He stresses it’s important for young people to form good habits early that can carry them through adulthood.

Good habits are important in all aspects of life, not only for your money.

The older you get, the harder it is to break habits. Be sure those habits are good; the good life can be automated.

Lesson #3:

Limit Tuition Costs

Many Ivey league schools charge over $50,000 per year for tuition alone; not factoring in any cost of textbooks, supplies, housing and other costs of living.

Meanwhile, going to your in-state community college tuition will cost you an average of $5,000 per year.

Are Ivey league schools 10 times more valuable than community colleges? Not according to Buffett.

Studies seem to back up Buffett’s theory as well.

It is true that people who attend Ivey league schools earn more on average. But it turns out, it’s about the student — not the school.

Lesson #4:

Avoid High Interest Debt

Warren Buffett’s advice to young people is to simply avoid credit cards all together.

This is good advice, as national statistics show that the lowest net worth individuals carry the most credit card debt.

You should never carry a balance on a credit card. If you must have one, it should be paid in full each month.

Never buy something on a credit card that you don’t have the cash to cover immediately.

Lesson #5:

Invest Consistently Each Month

It’s not enough to just save money each month, you have to put that money to work, immediately.

Warren Buffett’s advice? Invest consistently each month in the Vanguard S&P 500 ETF.

He famously bet $1,000,000 in 2008 that some of the countries most advanced hedge funds, over 10 years, couldn’t deliver better return for their clients than the S&P 500 ETF.

The S&P 500 ETF beat every single hedge fund. It wasn’t even close. All money was donated to charity, of course.

Lesson #5:

Hold Forever

Buffett famously said “My favorite holding period is forever.”

Warren Buffett turned about $1 billion into over $16 billion by buying shares of Coca-Cola and never selling them.

And that’s just one example of many stocks held by Warren Buffett.

To truly get rich, you shouldn’t sell wonderful assets.

Warren Buffett's Lessons on How to Get Rich

Charlie Munger on Becoming Rich

Charlie Munger is the Vice Chairman of Berkshire Hathaway and is well known for his witty, dry remarks and his profound wisdom in business and in life.

Munger is famous for using inversion in many aspects of life, including finance.

The following lesson is Charlie Munger’s list of things to avoid.

Don’t be stupid

“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.”

You don’t have to be smart; just avoid being stupid at all costs.

We have a comprehensive section on financial traps to avoid in Part 3 of this guide.

Don’t overspend

“Spend less than you make; always be saving something. Put it into a tax-deferred account. Over time, it will begin to amount to something. This is such a no-brainer.”

Living below your means is something that makes sense to everyone but can be hard in practice.

We will dive into this very deeply in Part 2 of this guide.

Don’t envy others

“What the hell do I care if somebody else makes money faster?” There’s always going to be somebody who is making money faster, running the mile faster or what have you. So in a human sense, once you get something that works fine in your life, the idea of caring terribly that somebody else is making money faster strikes me as insane.”

Envy is a deadly sin.

It casts it’s shadow over your judgement, your sense of well-being, even your sense of worth.

Overcoming envy is an important step to living below your means.

Focus on putting your house in order; don’t allow envy & greed to blind you.

Don’t invest with leverage

Charlie Munger says there are three ways to go broke: liquor, ladies and leverage.

Using leverage means taking out debt to buy investments. It is usually in reference to margin debt, which is buying stocks on credit.

Margin debt can result in total loss of your investments or even bankruptcy.

Buffett adds “it is insane to risk what you have for something you don’t need”.

Elon Musk on Business, Success and Life

Elon Musk is the CEO of SpaceX and Tesla Inc. He consistently ranks as both one of the most powerful and richest people in the world.

Here is a collection of advice he gives people who wish to follow in his footsteps.

Work twice as hard

“If other people are putting in 40 hour work weeks and you’re putting in 100 hour work weeks, then even if you’re doing the same thing you know that… you will achieve in 4 months what it takes them a year to achieve.”

There’s no denying that Elon Musk practices what he preaches.

Most don’t have the will, which gives the edge to anyone who does.

Read Books

Ok, this is not unique to Elon Musk.

Every way you slice it, reading more books leads to more wealth.

Elon Musk literally taught himself rocket science by reading books.

Make an effort to read books, especially non-fiction.

Consider The Worst-Case

Keep the worst case scenario in the forefront of your mind.

You could lose your job, the stock market could crash, interest rates could rise sharply, competition could beat you.

Keep terrible things in mind because many of them are likely to occur in your lifetime. You will respond better if you anticipate.


Elon’s actions speak much louder than his words when it comes to persistence.

When the Russian government wouldn’t sell Elon rockets, he decided to start a rocket company.

Many people told him not to do it, even his childhood heroes discouraged him.

When he started SpaceX, engineers didn’t want to join. So he read some books and became the chief engineer.

SpaceX had spent nearly all it’s money on failed rocket launches, and was 1 launch away from bankruptcy.

Today, SpaceX has the most advanced rocket technology in the world.

Part 2: Starting From Nothing

Becoming Rich - 40%

You should now have a basic financial framework to start your financial journey to becoming rich. Now’s let’s apply what we learned to real life.

Now the fun part, the exact step by step guide anyone can take to become rich.

The catch:

It will take hard work and a lot of patience.

Still with me?


Now, this part of the guide is geared primarily towards young people and people who earn minimum wage and have virtually no assets.

If you have a reasonably good job and a little bit of savings, please skip to Part 2: Leaving The Middle Class

Step #1: Increase your income

If you don’t have income or are earning near minimum wage, it’s essential that you take immediate steps to increase your income.

Easier said than done, I know.

Following Buffett’s advise, it’s time to invest in yourself. Here are some immediate steps you can take to work towards increasing your income:

Experiment with a side business

If you are young, unemployed and still living with the parents, there may be no better time to try to start your own business. Like Mark Cuban said, the most valuable thing you have is your sweat equity and with virtually no personal expenses, all your sweat can be devoted to your business.

Or, if you can find the time, you can start a small business that does work on evenings and weekends.

And it doesn’t have to be a business that changes the world.

Side Business Ideas

Simple services businesses like: landscaping, painting, moving, snow removal and residential & commercial cleaning are always in demand.

If you’re more tech-savvy: data entry, web and graphic design, social media administrator.

Yes, companies will pay you to post stuff on Facebook, and they’ll pay a lot.

You can start small by asking for pitty jobs from friends & family, slowly build your client base through referrals and free classifieds like Kijiji and Craigslist.

Since businesses in most places have lower tax rates than employment tax, you often times can earn less but end up keeping more due to lower taxes.

If it turns out you don’t like that business or it wasn’t successful, nobody was depending on you and you only invested your time.

Bonus of Side Businesses: Learn New Skills

Running a business is great because you are forced to learn skills that you never would have otherwise. Some quick examples are:

  • Accounting: Reading financial statements, processing invoices, managing budgets are all skills you will develop in the course of business.
  • Sales & Marketing: Without doing sales and marketing, your business won’t exist. The better you get, the more your business will grow.
  • Customer Service: In any business you’ll need to deal directly with customers, a valuable skill in demand at every company.

Think of it this way:

If you were a sales manager and had to hire for an entry level position which candidate would you prefer:

  • Candidate A: University Graduate in Business Administration with no work experience or;
  • Candidate B: A Small Business Owner, with no post-secondary education, who as sold and delivered services to dozens of clients over the last 4 years.

In nearly all cases, work experience is more valuable than education for a hiring manager.

Find a higher paying job

Currently, there are still jobs that can pay over double the minimum wage with virtually no skill or experience requirements. They may not be glamorous, but if you’re flipping burgers or unemployed, they are a great place to start:

  • Telemarketing
  • Waste Collection
  • Uber Driver / Courier
  • Factory & Packaging
  • Landscaping
  • Moving Services
  • Administrative Assistant
  • Reception
  • Sales Assistant

You’ll need a well designed, professional resume and some professional clothes for your interviews.

The key to these jobs is to check job boards daily and apply for jobs everyday. After hundreds of applications you’re bound to land a few interviews.


This is only temporary and by no means do you have to commit years of your life to an en entry level job. Having the extra income will allow you to invest in yourself.

Have a higher paying job find you

Hiring managers know that the best candidates don’t apply for jobs; jobs apply to them.

Put another way, the best employees are likely to already be gainfully employed, with employers spending top dollar to keep them happy.

One of the best ways to have a good job find you is to have well optimised LinkedIn profile.

In fact, 94% of recruiters say they use LinkedIn to vet a candidate and 48% say they ONLY use LinkedIn to find potential candidates.

Having your legitimate side business going adds incredible value to your LinkedIn profile and gives you exposure to the jobs you want; not simply the jobs that are available.

Optimising your LinkedIn profile is simple:

  • Ensure you have a professional picture with a big smile
  • List the jobs and experience that are relevant to the industry / trade you’re targeting
  • Connect with everyone you know, as well as all the recruiters in your area
  • List your business with a well designed logo
  • Add any education you may have completed
  • Reach out to previous colleagues and ask for a recommendation
  • Proactively give former colleagues recommendations (they will likely reciprocate)

Step #2: Live Below Your Means

If you have successfully completed step 1 and have increased your income, you now have the opportunity to develop the habit of living below your means.

Put simply, you must develop the habit of spending less than you earn.

If you are earning very low wages it can be impossible to live below your means.

Once your income approaches the national average, it becomes possible to generate a surplus, even if it’s very modest.

The goal of this step is simply to establish a habit and learn how to manage your money.

It’s extremely common for people to spend more when they earn more.

Don’t fall into this trap.

Consider the following tips if you are having difficulty generating a surplus:

  • Coffee: Make it at home. No more Starbucks (Or Timmies, sorry)
  • Car Expenses: Wash it at home. Drive in a gas-conscious way. If you have public transit available, consider ditching the car all together.
  • Telecom: Downgrade your data plan. Drop cable in favor of Netflix. Opt for a cheap phone instead of the latest gadget.
  • Hobbies: Explore low-to-no cost hobbies. Dine in with friends and family, stream movies at home
  • Utilities: Be extra diligent with turning off lights, computers, fans and appliances.
  • Groceries: Opt for the no-name brands. Bulk up on sale items.

There are thousands of ways to save money each month.

If you follow just a few of these tips, you should be able to easily generate a surplus of between $20 – $50 per month, which is more than enough to establish your habit of living below your means.

Step #3: Invest your Surplus

For a lot of people, especially those who have never saved before, let alone invested before, this can be a very scary topic that seems very scary.

And for good reason: Stocks, Bonds, GIC, High-Interest Savings, Options, Futures… the list goes on.

It seems like there is so much to learn and so easy to make the wrong choice.

The great news is, the best way to invest also happens to be the simplest one.

When it comes to investing, doesn’t it make sense to follow the advice of the best investor of all time, Warren Buffett?

Why read and listen to thousands of so called “financial gurus” when you can listen to the best of the best, who offers the most simple strategy?

He tells his own family to invest in low-cost index funds, which is a a fund that holds a large variety of stocks and charge virtually no fees.

And just like all of Buffett’s claims, they are backed up by fact.

Following Buffett’s strategy, you will earn the same return as the stock market overall, which outperforms the average investor by a tremendous amount.

The ETF he specifically mentions is the Vanguard S&P 500 ETF (VOO). It owns stocks of the 500 biggest companies in the US, and only charges 0.04% fee to do so.

Getting started is very simple:

  1. Open a cash investment account with a discount brokerage, such as E-Trade or Questrade, or you local retail bank
  2. Each month, transfer the surplus from the month from your checking account to your investment account (some have automated systems for this)
  3. Use your surplus to buy shares of VOO and the market price for that day.
  4. Forget about it!

It’s so simple it seems like it must be wrong. Nothing can be further than the truth.

There are two very important things that need to happen for this strategy to work:

  1. You can’t sell your shares. This strategy only works over a very long term. If you ever sell, you might be “selling low”, which is a mistake.
  2. You have to buy consistently. Consistent investment makes it so you can buy at low prices to make up for when you buy at higher prices.

Avoid these common traps that so many of us fall into:

  1. Get scared by sharp declines in price, or get excited by some other stock and sell your existing shares. This strategy doesn’t work if you sell your shares.
  2. Check your portfolio value frequently. The more you look at your portfolio, the more likely you are to make an emotionally charged mistake.
  3. Investing tremendous amounts of time to stock analysis, day trading and more complicated forms of investment. Even the professionals can’t beat the overall market in the long run, what makes you think you’re so special?

That’s really all you need to know about investing. Keep it simple, and focus your energy on improving your earning potential, not your investment return.

What’s the point of investing if I can’t ever sell?

Good question and fair point.

Selling only makes sense if you need the money to truly better your life, such as to pay for a home, start a business or pay for education that will improve your earnings potential or that of your family.

Buying a car, paying for a wedding, renovating your home are all examples of something people think are important enough to sell your shares.

Well that’s your own personal choice, but if your goal is to get rich, this will hold you back.

That said, you do get a “spendable” reward in terms of dividends. Dividends are cash payments that are automatically deposited into your investment accounts that are separate from the price appreciation of the fund.

Look, your investment returns will be better if you re-invest all your dividends to purchase more shares.

That said, rewarding yourself on the passive income you generated from your diligent investment of your surplus, it can be a great way to reinforce these good habits, which are critical in our next step: Leaving the Middle Class.

In summary: If you want to reward yourself, only use your dividend payments. If you can, re-invest your dividends into more shares of the fund, or setup automatically reinvestment plans with your investment broker

Part 3: Leaving the Middle Class

Becoming Rich - 60%

You have better financial habits than most people, even if your income is still relatively modest. With compound interest on your side, let’s try to ramp up even further.

If you worked hard to follow our Part 2 guide, you should at a minimum be earning an average income and have an average net worth, but hopefully slightly better.

To recap:

  • You should frequently apply for new jobs, and have a strong professional online presence that has head hunters reaching out to you for new jobs.
  • You should be either be enrolled in a formal education or running a side business to build your skills.
  • You should generate a surplus each month and invest it in your low cost ETF.

So now what?

You came here to learn how to be rich, not how to be average.

Now, the average person makes a lot of financial mistakes.

Using Charlie Munger’s philosophy of inversion, you should start by knowing and avoiding very common financial mistakes.

How to not go broke infographic

To exit the middle class, there are 3 basic ways to accomplish it:

  • Work Harder and/or Smarter than the average person – leading to better jobs or a stronger business.
  • Save more than the average person – leading to larger streams of passive income and more assets/wealth.
  • You experience a windfall due to external factors – inheritance, insurance settlement, winning lottery, anonymous donation

For the purposes of this article, we’ll only focus on the working hard, working smart and generating bigger surpluses and increasing our passive income, which is 100% in our control.

Step #1: Work Smarter and Harder

Many employees think they work hard, when they often times don’t put in the extra hours or the extra thought into their jobs.

If you think just putting in time and “paying your dues”, you’re mistaken.

Buffett describes this as “Most people walk around in sort of a haze”.

Maybe you recognize this in yourself, you get comfortable with a routine and you don’t seem to be moving forward.

Here’s the secret to getting promoted or big raises at work:

Save the company money, or make more money for the company.

Again, simple idea. And easier said than done.

On the job

If you go into nearly any job at a big corporation, you will notice many of them run on old technology, processes that haven’t been changed in decades and people doing data processing jobs that can be replaced with software and automation.

Other times, they are doing business with vendors and agencies that overcharge the company significantly for basic services.

Actively sniff out these opportunities, in addition to performing your duties with excellence, and propose them to your manager.

You will need to do your research on how to make a business plan, make a good presentation. Again, this is the extra work people aren’t willing to put in, and why you’ll escape the middle class and they won’t.

All of the sudden, instead of being the person who is doing what they are told — you are the person who strengthens the company without being told what to do.

Every manager’s dream.

When you manage a company, the most important numbers are: Revenue (sales), Expenses and Profit.

If an employee can move the dial on any of these numbers in a measurable way, that employee should expect rewards.

And if you don’t get the reward, there will be plenty of companies who would be happy to have you move the dial for them.

In your business

If you are happy with how your business is going and would rather focus extra time there, that’s great!

As you are probably aware, nearly all the richest people who’ve ever existing in capitalism, have been business owners.

But even if you don’t aspire to be the richest, business owners are significantly ahead of the middle class in both income and assets by a significant margin.

Of course, all these potential rewards come with risk.

Business is highly competitive, and if you aren’t ready to put in more work than the next company, you might end up wasting time and losing money.

There’s no one way to run a business correctly and no one guide can tell you how to run your business.

Assuming you are running a simple services business, there are some general principles you can follow:

  • Focus on sales and marketing, having more sales than you can handle is generally considered a “good problem”
  • Find ways to reduce expenses on supplies, equipment, wages, transportation, taxes and vendors.
  • Strive for positive cash flow every year, where appropriate

Your goal in business should be to slowly, but surely, automate as much as possible and hire great people to manage the business on your behalf.

You want your business to be as passive as possible, which leads to the next step in this part.

Step #2: Grow Your Passive Income

Hopefully with your prudent investing, you are starting to see your passive income grow each year through your dividend payments.

It’s a simple idea:

We all have a limited time on this earth. There’s only so much of your time you can trade for money.

Wealthy people know that you can also trade money for more money.

And if time is money, then more money means more time for you.

Passive Income is a about lifestyle choices

The biggest difference between those with passive income and those without, is the types of things they buy.

Basically, wealthy people spend most of their money things that appreciate in value and return income, such as:

  • Stocks, Bonds & other Financial Assets
  • Real Estate (and rent out to tenants)
  • Businesses

Whereas, less wealthy people spend most of their money on:

  • Monthly Payments (Mortgage, Car Payments etc)
  • Interest Payments
  • Gadgets & Electronics
  • Expensive dinners, vacations, bar tabs and the like.

Even if all you have to spare is $5, you can still spend it buying stocks or other financial instruments. There are no minimums!

Delayed Gratification & Keeping up with the Jones’

Don’t get the wrong idea:

You shouldn’t hoard all your money, live in dirty clothes and deprive yourself in the name of generating a surplus.

But in the same breath, unless you plan to work for the rest of your life and never get ahead, you have to delay some of those purchases.

And it’s tough — when your neighbors and peers are buying big houses, driving fancy cars and traveling to exotic destinations, it’s hard to ride the bus to your modest dwelling and opting for a simple camping trip as your getaway.

But here’s the difference

In the not-too-distant future, you can have enough passive income to pay for that fancy car, or those exotic travel adventures and you don’t have to trade your time for it.

In fact, the best way to become rich is to have all of your expenses paid for through passive income, meaning you don’t have to work to support yourself.

Even if you aren’t making millions of dollars, having true financial freedom is what many people consider being rich.

Step 3: Advanced Money Management

Before we dive into this step, let’s recap where you should be with your finances by this point:

  • You should be earning more than you spend
  • Your income should exceed the average where you live
  • Your passive income should increase each year
  • Your assets should be increasing in value each year

The four points above are the basics that have to be achieved before moving into more advanced techniques.

Rewards Credit Cards

Now that your assets and income outstrip your debts and expenses, it’s much easier to be responsible with credit cards.

As long as you never carry a balance, and never pay interest, you earn free rewards for nearly all your purchases.

Nearly all credit card options have automatic payments for full statement balances, meaning you can set it up to never pay interest and only reap the rewards.

Depending on the card, you can effectively get 1% – 2% back on everything you purchase on credit cards, which really add up each year.

For many households, this can be anywhere from $500 – $1500 per year in rewards.

If you also run a business that has inventory turn-over, the rewards can sky rocket to thousands of dollars in rewards every year.

Make Your Home an Income Property

In general, if you take out a mortgage and live in your home, you won’t profit from it in the long-run.

After maintenance expenses, mortgage interest, property taxes, labor, inflation and realtor fees, you are unlikely to see profit when you finally sell the house.

However, if you can rent part or your entire house, it produces rental income that can vastly outweigh the costs in the long run.

If you currently live in a house you own, you should consider whether you can turn a floor of the house into a dedicated apartment that can be rented out.

Borrowing money on a home equity line of credit for such a renovation is an example of good debt – that is debt used to generate income and increase the value of your asset.

Borrowing money to renovate your kitchen for your family is an example of bad debt – those kitchen appliances will deteriorate over time, and if you don’t plan to flip the house immediately, you are not actually increasing the value of your home.

If you currently rent and have enough money saved for a reasonable down payment on a home, you should strongly consider purchasing a house that is already tenanted to immediately start collecting rental income.

You can choose to either live in one of the units and rent the other, or purchase the unit and let the tenants pay the mortgage off.

Minimize Your Taxes

Notice it says “minimize”, not “avoid”.

Paying your fair share of taxes is your responsibility as a citizen.

Governments use taxes to both encourage and discourage certain behaviors in a population.

If you want people to start businesses, give business low tax rates.

If you want people to stop smoking, increase taxes on cigarettes.

These are two simple examples of how governments use taxes to influence behavior.

Depending where you live, your government might have various tax incentives that you could be taking advantage of, including:

  • Writing off legitimate business  and/or employee expenses, including a portion of gas, internet, cell phone, insurance etc
  • Writing off medical expenses
  • Donate to charities and political organisations to reduce your net income
  • Apply for tax credits for home energy efficiency and appliances
  • Apply for tax credits for using public transportation
  • Keep money in your business instead of paying yourself a high salary
  • Maximize your retirement savings (401k / RRSPs)

It becomes more important the more wealthy you become to enlist the help of a professional accountant. While they may expensive up-front, the savings they can find for you in your taxes can be tens of thousands of dollars per year.

In addition, if they find all these savings for you, you can do taxes yourself in the following years to save money on accountant fees.

Part 4: Working is Optional

Becoming Rich - 80%

Most of the world would now love to trade places with you (financially speaking, at least). You no longer have to work for money, since your money works to cover your expenses.

Congratulations, once you’ve reached this step, many people will call this “financial freedom”.

Many others call this being rich.

You may not have the most wealth in the world, but you don’t have to spend your time for money any more.

At this point, you may also be approaching the elusive 1% club, meaning having a higher net worth than 99% of the population where you live.

To recap, your financial situation will look like this:

  • Your passive income is approaching or has exceeded your overall expenses
  • The annual net worth increase is almost a small annual salary on average
  • Nearly all your wealth is in assets like Stocks, Bonds, Real Estate or Businesses

At this point, if you simply continue what you’re doing for the next 10-20 years, you will have tens of millions of dollars.

So you really have to ask yourself, do you want tens of millions down the line, or do you want more free time now?

Financially Free or Extraordinary Wealth?

This is a personal question that someone seriously needs to ask themselves at this point in life.

If you reached this point, you’ve probably already learned that “buying stuff” is not fulfilling and doesn’t really make you any more happy in the long run.

Your could also be bigger and have nicer things in it.

Your car could always be faster and more exotic.

You should strongly consider investing your time in the things you love and have your money work for you.


  • Spend more time with your family, children, spouse and friends.
  • Spend time volunteering in organizations you support
  • Work a job purely for interest, not money
  • Quit your full-time job and pursuit your business full time
  • Go back to school and pursuit your interests

Having this optionality in life is something most people could never imagine, you shouldn’t squander such an opportunity.

In most years as the economy grows, you can expect:

  • Your passive income to grow
  • Your asset prices to increase

For many, this can be a very successful end to wealth accumulation phase of life.

If the competitive side of you is set on becoming wealthy, then continue reading.

Becoming Big Business

If you want to be extremely wealthy, the best way is to own a large business where you are the majority shareholder.

You can either grow a business or buy a business, and if you are at this stage of life, either is an option for you.

You’d be surprised too — many businesses you’d never heard of make millions of dollars in profit each year.

Take your current business to the next level

If you have been running a side business and it is slowly but steadily been growing, it might be time to take things to the next level.

Aside from quitting any other employment and dedicating 100% of your working time to your business, there are several investments  you can make in your business to take it to the next level:

  • Hire a highly skilled (and expensive) executive or outsourcing agency to manage a part of the business where you’re weak. ie Sales & Marketing, People Management, IT & Software Automation etc
  • Seek a partner and/or investor with experience in your niche to help you grow your business
  • Expand into new territories
  • Expand your produce offering
  • Upgrade your customer experience

Buy an Existing Business

This can be a risky move and should only be done with proper experience and due diligence.

That said, there are no rewards in life that come without risk.

Considering at this point you have significant assets, you can choose to sell them and use the capital to purchase somebody else’s business.

Often times, if you sell all your passive income assets in favor of active business income, your income can increase significantly.

Of course, the income is no longer passive and requires an investment of time.

If you are feeding your competitive side, there is no higher stakes game than the global free market.

Infographic on how to become wealthy

Part 5: The 0.1%

Becoming Rich - 100%

You are rich. Well done.

Once you reach this stage of wealth, you will become one of the richest people in the world.


At this point, there is nothing more this guide can teach you about becoming rich.

Sorry we could only take you this far.

We strongly recommend at this point in your life you consider The Giving Pledge.

The Giving Pledge is a campaign to encourage the wealthy to give away over 50% of their wealth.

If you have made it here through your own hard work, sacrifice and patience, you will likely know the following things to be true:

  • Not everyone was as lucky to have all the opportunities that you did;
  • Not everyone was as smart as you to take advantage of the opportunities presented;
  • Not everyone is capable of running a successful business;
  • There are billions of people in the world who need help, and your direct family is likely already well taken care of financially
  • Your wealth has the ability to have a large, positive impact on the world for years to come
  • Nothing feels better than helping others and seeing your impact directly

The only question you have to ask yourself is when you want to start giving back.

If you love your business and you can grow your wealth by keeping money in your business, then you should delay giving the money away.

If you’d rather get directly involved with philanthropy while you are younger, then that is great as well.

No matter how hard you worked or how smart you are, you are successful at least in part to society, that gave you customers, infrastructure and laws to build your business and protect your assets.

Another part was also pure luck, either by being smart, healthy, born in a great country, have good parents, got a good public education which are things you had no control over.

We can all agree that at least some part of your tremendous wealth should be given back to society to help others reach their potential, just as you did.

Matthew Armstrong

Matthew Armstrong

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