Best way for a normal person to become a multimillionaire?

Two step process:

1. Buy gold

2. Wait for Fed to print money, igniting hyperinflation

Taking the Investment banker track is solid if you can make it through the burn out period and do well to keep moving up to Department head.

90k/year - First year analyst

300k/year- Third year associate

2m+/year- Department Head (5-8 years avg to get here)

From there live within your means and invest intelligently.

Just going to be honest wrote:

Either way I guess if it was easy everyone would do it.

Most if not all things in life are easy. People just lack self control and are lazy. That's the only "uneasy" part

Leveraging. Borrow money and invest it at a rate which exceeds the interest on the borrowed money. Pledge the investment as security for the loan. Eventually you will generate millions of dollars if you borrow enough.

Mr. Doritos thank you for your input.

Very high risk, high reward method.

Mr. Doritos wrote:

Leveraging. Borrow money and invest it at a rate which exceeds the interest on the borrowed money. Pledge the investment as security for the loan. Eventually you will generate millions of dollars if you borrow enough.

generally these guys do great during uptrends and get killed during any shock event.

Barrons actually did a study here. Most multimillionaires have good but not great jobs and are frugal and careful in their investing, making sure to protect their principal.

most of the superrich made their money from a few lucky investments or ownership of a specific company, not from diversification. the genius investors like buffett or soros are the exceptions, and plenty of people have made money siphoning money from others.

Considering salaries really don't guy that high, investing seems to be the only way to go.

Creating a business that is a homerun seems along the lines of being a professional athlete is is so unlikely should not be considered.

Thoughts?

90%+ of the people you are referring to were born in to wealth. You best chances of being rich is if your daddy is loaded, oil man,corrupt defense contractor, etc. etc.

Save enough money to start a training camp in East Africa (Kenya, Ethiopia, Somalia, or Rwanda) at altitude. find already established runners and convince them you are the world's greatest track coach.

Follow sound, already established distance running principles. Once you produce world champions, take 20% of their income, and also get a percentage from all the athletes you refer to managers.

Ta da...millionaire

Oh? It has already been done?

There still is a 10% chance. This post has nothing to do with running kenya coach.

I think it is doable. There are people below the age of 30 right now that within the next 30 years will hit the 100m mark and be SELF MADE.

It's possible.

Saying that you need to inherit such a fortune or get extremely lucky ie. lotto,investment

...is a copout IMO.

You can do certain things in your younger years to better your chances. That should start with smart decisions at the teenage years.

1) Investment banking ponzi scheme

2) Run a company into the ground and take lucrative severance package

The only way anyone makes that kind of money is by being far smarter average.

Just going to be honest wrote:

What is the best way for a "normal" person to increase their net worth to over 100 million?

Someone said leverage from borrowing a ton of money-- this is absolutely correct.

The only thing I'd add is that you want to make sure that they can't come after your other assets. If you are young and have no assets-- you can take out personal loans and declare bankruptcy if it doesn't work out.

If you have some assets-- you need to set up a limited liability entity, have the entity borrow the money, and then make huge bets with the borrowed money.

If the bets work, you get rich. If the bets don't work-- you get to walk away.

If you get into the actual statistics, a vast majority of millionaires (about 70%) are actually business owners. They either start or purchase a business, then work it for years and years, growing more successful along the way. Most of these millionaires are very unassuming and don't want to publicity of many of the rich people of whom we are aware.

Read the Millionaire Next Door and other books by Thomas Stanley, who has been studying the traits of the rich for over thirty years now. It will give you a lot of cold, hard facts that will open your eyes.

Just keep in mind that the process of becoming a millionaire involves a ton of hard work and rarely do you get much publicity in the process (or even afterward). Good luck.

[quote]Millionair Next Door wrote:

If you get into the actual statistics, a vast majority of millionaires (about 70%) are actually business owners. They either start or purchase a business, then work it for years and years, growing more successful along the way.

This. And y'all need to keep in mind that a million dollars doesn't really represent a lot of security any more, especially if you have a family. Ten million, maybe. All it takes is one kid with an issue, physical or mental, to suck it dry. Or an accident happens and you get sued. Or you have your first heart attack at 35. Or any number of other fun things that happen every day.

So, work hard at what you love and life will be worth living. Money just makes it a little more fun.

Just going to be honest wrote:

Taking the Investment banker track is solid if you can make it through the burn out period and do well to keep moving up to Department head.

90k/year - First year analyst

300k/year- Third year associate

2m+/year- Department Head (5-8 years avg to get here)

From there live within your means and invest intelligently.

You obviously know nothing about ibanking, or the culture.

It is amazing how many people on here think they are really smart and have all the answers. Most do not have a clue.

1. Work hard

2. Be passionate about what you do

3. Never borrow money

4. Live well below your means

5. Save

6. Invest wisely

Do this your for 25/30 years and you will all be worth millions. But most Americans are selfish, surviving on CC debt, because they want to impress people they do not know or even like - then they complain and vote for Obama because he will give them stuff that he stole from others.

drunk wrote:

It is amazing how many people on here think they are really smart and have all the answers. Most do not have a clue.

1. Work hard

2. Be passionate about what you do

3. Never borrow money

4. Live well below your means

5. Save

6. Invest wisely

Do this your for 25/30 years and you will all be worth millions.

Your recipe is correct is you just want to get 1-2 million after a lifetime of work.

However, I do believe that the original post said "100 million or more."

The people with real money aren't hard-working savers. The people with real money borrowed other people's money and took huge risks with it.