Shortcuts to wealth are not a recent invention.
Take a Ponzi scheme, for example, which has been around for more than a century. Many people question traditional approaches to wealth, such as having a well-paying job, running a small business, or investing in index funds.
They often see these methods as being too slow, and only providing financial freedom later in life, such as in their 60s. I get where they’re coming from.
Wanting to have it all now is a common feeling. With that in mind, here are some legitimate and proven ways to get rich quick that actually work.
1. Investing in land
I know quite a few people who have invested in land more than once, often with inside information about upcoming infrastructure projects like highways, railways or airports. This type of knowledge typically comes from contacts within the real estate industry or local government.
It allows them to predict how these developments will enhance the value of the land. Their approach goes beyond mere luck. It’s about being informed and strategic.
They devote time to understanding local development plans and zoning laws, and their network of contacts becomes invaluable in identifying potential land investment opportunities.
2. Investing in initial public offerings
Investing in IPOs, such as Amazon’s in 1997, shows the potential for significant returns. If you invested $1,000 in Amazon, by 2020, you would have more than $50,000.
Today, that investment is worth approximately $1,946,689.06, given stock splits in June 1998 (2:1), January 1999 (3:1), September 1999 (2:1), and June 2022 (20:1), for 18.55 shares. To 13,334.4.
With Amazon shares reaching $145.99 on November 20, 2023, that initial investment has multiplied many times over. While this sounds like an easy way to get rich quick, it is not. If that were the case, everyone would be doing it.
3. Working in a startup before the IPO
In the early days of Facebook, up until late 2005, some entry-level employees in basic office or site support roles received between 1,000 and 5,000 posts. Thanks to various stock splits over the years, these shares increased to 80,000-400,000 by the time of Facebook’s IPO.
At Facebook’s IPO price of $38 in 2012, these shares were worth between $3,040,000 and $15,200,000 before taxes, assuming employees held on to their shares until the IPO.
This scenario created 600 millionaires in Facebook’s IPO. The New York Times even reported that there are “thousands of millionaires” thanks to the company’s stock.
4. Lottery
Well, that’s obvious. The lottery is probably the most famous get-rich-quick scheme.
While it is often a legitimate process run by governments, I would call it more of a poverty tax than a true path to wealth. The chances of winning a big jackpot are incredibly low, making being struck by lightning more likely than winning the jackpot.
5. Marriage
While the lottery is the most popular get-rich-quick scheme, marriage is perhaps the most popular. As for how easy it is to get rich this way, I haven’t tried it, so I can’t say.
6. Early adopter
In recent years, we have witnessed the rise of Bitcoin millionaires. The truth is that while some made money from this, most did not. To me, cryptocurrencies, non-fungible tokens (NFTs) and similar trends seem to operate on the “biggest fool” theory.
Those who were the first investors made huge profits, with each subsequent wave of investors generally seeing a lower return. The second wave of investors made smaller gains, the third even less, and so on.
7. Event management
You may find this surprising, but it comes from personal experience. About 20 years ago, I got involved in event management as a side hustle. We decided to organize a New Year’s Eve event. Our initial investment was only $1,000 as a deposit into the hall, and we covered the rest through ticket sales.
By January 1, after all expenses, we had raised $42,000. It took three months of intense work on our part, and while the financial reward was great, the stress level was something else. The responsibility of managing a large crowd, something you can’t fully control, was almost exhausting.
8. Having the right product in stock at the right time
You probably know someone who had a stockpile of masks when the coronavirus hit, just like I do. I’m not suggesting they have inside information; It was a stroke of luck.
On the flip side, I also knew people who expected high demand during events like solar eclipses. But they overestimated the market and ended up with thousands of unsold glasses in Amazon’s warehouse.
Sometimes being in the right place at the right time with the right product can lead to unexpected gains, but it can also go the other way if market demand is not as high as expected.
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