Editor’s note: This article was first published in October 2015, when Donald Trump was hosting the TV show The Apprentice; he later served as US president, so the references to him may read differently today.
There are smart ways to try to make more money, and ways that aren’t so smart.
Thomas C. Corley, author of Rich Habits, spent five years studying the rich (people with an annual income of $160,000 or more and a liquid net worth of $3.2 million or more), and in the process he discovered some of the best ways the rich used to make more money, which in many cases grew into a profitable main business.
His 6 best tips for making more money
1. Turn something you’re passionate about into a side business
Building a side business doing something you love provides value to others and to society. According to Corley’s study, self-made millionaires who did what they loved for a living accumulated an average of $7.4 million in just 12 years.
When you do something you love, you don’t mind putting all your time into it.
The Wright brothers worked full time in their bicycle business, and when they finished they carried out their famous experiments, which eventually led to the invention of the aeroplane. Over the course of five years, the two brothers worked 16 hours a day: 8 hours in the bicycle shop and 8 hours on their great passion, the aeroplane.
When you do what you really love, you find the energy and the time to devote to your passion. What business should you start?
2. Take calculated risks with your savings
Success requires taking risks.
You have to risk some time and money in order to create wealth of some kind. This doesn’t include gambling. It’s a completely different kind of risk called calculated risk.
This kind of risk means that once you have gained some experience and practical knowledge in an area, you put that knowledge to work and take action, rather than diving blindly into something you have no experience in. It could be real estate, investing in a private business, starting your own business or pursuing another opportunity. And like every opportunity, there will be risk; the only way to minimise it is to learn more about the business in question.
See also: 38 ideas for making extra money from home with no investment
3. Develop a niche in your career or business
Among the millionaires in Corley’s study, those who had unique expertise in a particular area sold their companies for more money or were able to charge clients more than their competitors. You can develop your niche through learning, whether from other people, by taking classes or by reading.
Most of the millionaires in his study read for 30 minutes or more every day to learn, and many others went to night school to develop skills and gain knowledge that helped them build enormous wealth. Although this takes time and effort, it’s an investment in yourself that always pays dividends in the future.
(See: Warren Buffett: the best investment is investing in yourself)
4. Partner with other people
Many of the millionaires in Corley’s study had joint ventures with other individuals. Organising a team of like-minded, success-focused people makes it much easier to succeed in business and build wealth.
Many hands make light work, and you also have several brains to draw ideas from and solve problems.
Andrew Carnegie, who became the richest man in the world, set up joint ventures with other people in steel, railways and coal at the start of his business career, in order to make the most of the little money he had at the time. His partnerships created many millionaires and gave rise to the company famously known as US Steel.
5. Work part time as an apprentice
Donald Trump has a show called The Apprentice. The winners get the chance to work for him and learn from him.
If you lack the skills you need in a field you’d like to work in, find a successful person in that industry and offer your services as an apprentice or intern. This has a triple benefit:
- You get to learn from a mentor.
- You can earn extra money.
- It gives you the chance to learn the job and see whether you really like it. If you find out you don’t, you can always move on to something else.
(See: Steve Siebold: “I’m a self-made millionaire, and this is the best advice I can give you”)
6. Change careers if you don’t like the one you have
One of the things Corley found that self-made millionaires had in common was that they designed their own career path.
Many people don’t. They pursue a career or profession that their parents, teachers or other influential people in their lives advised them to follow. As a result, they aren’t pursuing their own dreams or goals but someone else’s.
Fortunately, it’s never too late to change careers
As mentioned earlier, self-made millionaires who pursued what they loved were able to build an enormous amount of wealth in a relatively short time. Changing careers may mean going back to night classes, but you can do that while you’re still working. Once you have your degree or certificate, you can leave your current job or business for a new one that offers you greater opportunities, more money and, most importantly, something you truly enjoy.
That said, many other millionaires have something in common: they are self-taught.
Further reading
- 10 things you need to do to be successful and happy, according to the advice Warren Buffett gives new graduates
- 15 billionaires and the 15 traits that made them highly successful in business
- Compound interest: the first pillar of smart saving and investing
Featured image: Wright brothers, Public domain, via Wikimedia Commons.
