How can I become rich?

amother

Stonewash

Mon, Oct 02 2023, 11:42 am

PBY wrote:

I have 2 little kids and I own a house already and bh we are doing well enough that we still have an extra 50k a year to put away.
Is there a tried and tested way to use that extra income to became rich or is it just investing wisely and getting lucky with an investment?

There really isn’t a get rich quick non risk idea. However if you consistently put away 50k for the next 20 years with a 7% annual avg return in a solid investment you will have 2.2 mil.

amother

Cerise

Mon, Oct 02 2023, 12:07 pm

Invest in the s&p year to date has been up 11-15% even throughout recessions and dips in the long term it has been going up
choose an investment advisor to use your extra savings into a portfolio, you can diversify into high and low risk for good returns
Government bonds are very attractive now, you can do short term with good gains
It’s not about a get rich quick scheme (doesn’t exist, fake)
Only other way is hard hard work and that’s almost impossible with little kids around and if you don’t have strong financial support

amother

Turquoise

Mon, Oct 02 2023, 12:07 pm

Becoming rich is not a race, its a marathon! Dont try to get rich fast because chances of losing everything are really high

All the brothers of my dad received the same amount of money that my dad did when my grandparents passed away. My dad invested in two stores that took 5-6 years to reach break even point and after 10 years since he opened he was really thriving!

Now its been 30 years and we have a very nice patrimony

Oh, my uncles are all broken because they invested in high risk options

PBY

Mon, Oct 02 2023, 12:18 pm

Thank you for all the responses. I understand how to build wealth over a long period of time. I was asking more in the short term. When they say "it takes money to make money" is that for short term or long term. Can I make money in real estate in short term, buy another business or does anyone have other ideas?

amother

Feverfew

Mon, Oct 02 2023, 12:25 pm

amother SandyBrown wrote:

I believe the S&P

Historically the S@P has always gone up. But in the last 2 years it's been flat. Also, the market will have to absorb and adjust to the highest interest rates in 15 years. I'm not confident the S@P will be higher in 2 years from now.

Another thing to consider is that the S@P has fallen an average of 20% in the last 7 recessions. We are very (very very very) likely headed into recession right now.

amother

Ultramarine

Mon, Oct 02 2023, 12:26 pm

PBY wrote:

Of course you can. You just need far more luck.

amother

Buttercup

Mon, Oct 02 2023, 12:37 pm

Please look into an S&P 500 or total stock market index fund.

The US stock market (the SP-500 is a good proxy for the whole stock market and contains the 500 largest companies in the stock market) has had an average annualized return of about +10% over the last 75 years or so. This does not mean it will continue to do so, but it is your best bet for growth. Yes, you will have inflation eating away a portion of your returns (so your real return may be around 7%), but you will be better off than sitting on cash. Keep in mind that investing in the stock market is for the long term. If you need the money for short term goals (say about 0-5 years out) you will be better off keeping the money in cash equivalents.

To invest in an S&P 500 index fund, you first need a brokerage account. A brokerage account is just like a checking or savings account, but it allows you to hold investments. You can open one of these in minutes at any of the big firms. I recommend Vanguard or Fidelity. Once you have an account, link your bank account and you can transfer money into the brokerage account.

Then you want to buy an S&P 500 index fund. These are funds that invest in all the companies in the SP 500. For Vanguard, select VFIAX (this is the ticker symbol for this specific fund) or you can go with VTSAX (this fund invests in all the companies of the US stock market). For a Fidelity account, you can use FXAIX or FSKAX.

It is highly recommended that you set up automatic transfers/investments to these funds every month. In the beginning, you may not see a lot of growth, especially in a down market, but over time, the account will grow and mushroom bs"d.

This is not investment advice and I am not a financial advisor. This is just what I do and it is working B"H.

amother

Smokey

Mon, Oct 02 2023, 12:47 pm

amother Turquoise wrote:

And plenty of people invest in stores/businesses like your father did, and they also go broke. 90% of them fail.
Your father had better Mazel.