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10 Things You Need To Know About Getting Rich Quick

by Feb 24, 20220 comments

Have you ever wondered what happens to people who get rich quick? Do you think they just buy million-dollar homes and cars and retire on the spot?

The truth is that 70% of lottery winners end up broke within seven years of winning. A common trend in their stories is that they use their winnings to buy whatever they want. Cars, designer clothes, and even a soccer team are all things lotto winners have lost money on. This is just what happens when you give money to people that don’t know what to do with it.

Getting rich quick is possible, but it certainly isn’t easy. If you think you want to try your hand at it, here are:

Five Ways People Are Getting Rich Quick

1. Winning the lottery

The lottery is what most people think of when they hear the words “getting rich quick.” While your odds of winning the Powerball are incredibly slim, you’d be set for life if you win the jackpot. 

That being said, are you willing to part with $2 for a 1 in 290,0000,000 chance of winning?

2. Getting lucky on stocks

If you look back to the first quarter of 2021, you’d remember that Gamestop (GME) stocks were making international headlines. In 2019, the stock was trading for just under $4, but in January 2021, it jumped to $325. If you invested $50,000 in the stock, as a certain trader did, then you would have been a multi-millionaire. Unfortunately, putting thousands of dollars on cheap stock and hoping it skyrockets rarely ever works. 

That’s not the only way people get rich off the stock market, though. Some people have taken to day-trading, buying, and selling stocks as a full-time job. While this can be a lucrative venture, it takes time and research to see a profit. For most people, that time would be better spent at a 9-5.

Unlike other investments, stock trading requires a lot of work. While it can help you get rich more quickly, you may also lose your capital just as fast. If you’re trading stocks, do your research, and don’t invest money that you’re not ready to lose.

If you want to learn more about investing, you should read my guide to investment books for beginners.

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3. Cryptocurrency

Speaking of volatile yet potentially lucrative investments, there’s cryptocurrency. In the past decade, there’s been much buzz around cryptocurrency. You probably already know how Bitcoin used to be worth less than the cost of a pizza but is now worth thousands of dollars. The real people who got rich quickly from Bitcoin were the ones who bought it when it was cheap.

That being said, there is still a lot of potential in cryptocurrencies. Even after numerous attempts to crack down on crypto, they’re still reaching all-time high prices. If you’re willing to take on a bit of risk, you might want to consider hopping onto the crypto bandwagon.

4. NFTs

There’s a lot of buzz around NFTs (non-fungible tokens) these days. Everywhere you look, from Twitter to Instagram to Reddit, people are talking about them and profiting off them. If you don’t already know what they are, think of them as a digital receipt proving ownership of something. NFTs tend to be images, photos, artworks, videos, and more. What gives them value right now is that they are one-of-a-kind and can’t be replicated.

NFTs can be bought, sold, and traded just like stocks and cryptocurrencies can. Since they can be anything, some people have turned their own faces into NFTs and become millionaires. With enough research, it can be profitable.

However, you should know that NFTs have many doubters. Some experts claim that it’s even a bubble waiting to burst. Hop on at your own risk.

5. Inheritance

If you were born to a wealthy family, you might receive an inheritance. Many people get rich quickly because they are born into the right family. They get money, land, even businesses just because of luck.

Unfortunately, this isn’t an option that everyone has. Being born into a rich family with an inheritance all but guaranteed is an immense privilege. 

The Truth About Getting Rich Quick

Did you notice a trend, sis? Getting rich quick is mostly about luck. If you want to become a millionaire from almost nothing, then you better have the luck to back it up. 

There’s no such thing as an easy shortcut to getting rich. Even if you spend thousands of dollars on lottery tickets, there’s no guarantee that you’ll ever win. The best way to get rich is through years of hard work, research, and sacrifice. This will teach you to build healthy financial habits to grow your wealth even more. This is something winning the lotto could never teach you.

That isn’t to say that you shouldn’t try getting rich quick. I’m just saying that if you do, then you should have a plan. If you get rich quickly, you need to make sure you stay that way. Here’s how:

Five Ways to Stay Wealthy After Getting Rich Quick

1. Get a Certified Public Accountant (CPA)

Most people aren’t prepared to handle a huge influx of money in their bank accounts. This is why most lotto winners end up going broke. 

That’s why, if you do end up getting rich quick, you should get yourself a CPA. This person can help you best utilize your money, budget it for you, and make your wealth last. They can also help you calculate your taxes. Speaking of…

2. Pay your taxes

What do Al Capone, Martha Stewart, and Wesley Snipes all have in common? They were all convicted for tax evasion. That’s right, they may all be rich and famous, but that doesn’t excuse them from paying taxes. You have to pay your taxes; otherwise, the government can seize your assets like your house and car.

There are certain retirement accounts that you can invest in that are tax-free, though. Check out my article on them if you want to learn more.

3. Live within your means

The biggest enemy of people who got rich quickly isn’t a new tax bracket but lifestyle inflation. Just because you have a huge influx of money, make sure that you’re still living within your means. Otherwise, you could deplete that sum faster than you may realize.

If you want to know how to beat lifestyle inflation, check out my article on beating the biggest budget challenges.

4. Invest

If you have a huge sum of money, it’s best to keep it all in a bank account. While holding that money in your bank will earn you interest, it won’t be enough to beat inflation. You should put most of that money in stable investments if you want to protect it while still growing it.

With a considerable amount of money, it’s probably better to hire someone to manage all of it for you.

5. Be careful who you trust

This last tip is a critical one—many people who get rich overnight end up telling their family and friends all about it. At times, this doesn’t change much, but at other times, this can be catastrophic for their relationships.

Just look at MC Hammer as an example. Over the course of his career, he amassed over $33 million. However, he spent $500,000 a month giving friends and family money and other assets as members of his entourage. His circle was needlessly large, as it was about 200-people strong. If Hammer had kept his circle tight, then maybe he wouldn’t be where he is today.

But you can always trust me and my advice. That’s why you should join my financial fam. As a member, you’ll receive personal finance tips from me every week. Sometimes, I’ll even throw in a freebie to let you know how much you mean to me. The best part? Signing up costs you absolutely nothing. So what are you waiting for? Sign up today!

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