By <a href="https://www.cnbc.com/tom-corley/">Tom Corley</a>



Unless you were born into a rich family,&nbsp;<a href="https://www.cnbc.com/2019/04/04/5-traits-that-separate-millionaires-like-jeff-bezos-mark-zuckerberg-bill-gates-from-those-who-never-succeed.html" class="">building wealth</a>&nbsp;can be very hard — depending on the path you choose.



Many people look at&nbsp;<a href="https://www.cnbc.com/2019/05/24/self-made-millionaire-5-biggest-money-mistakes-that-are-making-american-millennials-poor.html" class="">multi-millionaires</a>&nbsp;and desperately want to know: What’s their secret? How did they get there? What does it&nbsp;take?



Those are the things I wanted to know back in 2004, when I began my&nbsp;<a href="http://richhabits.net/rich-habits-study-background-and-methodology/" class="">“Rich Habits”</a>&nbsp;study, in which I spent five years interviewing and researching the daily activities, habits and traits of 233&nbsp;<a href="https://www.cnbc.com/2019/03/26/money-mistakes-millionaires-like-warren-buffett-bill-gates-google-eric-schmidt-never-make.html" class="">wealthy individuals</a>. All of them had at least $160,000 in annual gross income and $3.2 million in net assets.



During my research, I found there are four predominant paths toward accumulating wealth. The “Savers-Investors” path is the easiest, while the other three involve much more risk.



<h2 class="wp-block-heading">1. The Saver-Investors path</h2>



Just less than 22% of the millionaires in my study chose to take the Saver-Investors path. Not only is it the easiest way to build wealth, but if you&nbsp;<a href="https://www.cnbc.com/2019/05/15/self-made-millionaire-this-is-the-no-1-way-to-get-rich-ramit-sethi.html" class="">start early</a>, it almost always guarantees a lot of money.



The Saver-Investors in my group reached their first $1 million around their mid-to-late 30s, and accumulated an average net worth of $3.3 million by their mid-50s.



They also had four things in common:



<ol class="wp-block-list"><li>They typically had a middle-class income (many reached a six-figure salary early in their career, and if they didn’t, they lived&nbsp;<a href="https://www.cnbc.com/2019/08/28/i-saved-100000-in-3-years-at-age-27-here-are-my-money-saving-tips.html" class="">very frugally</a>.)</li><li>They had a low cost of living and preferred to save, rather than spend lavishly.</li><li>They saved 20% or more of their income.</li><li>They started investing their savings early in life and continued to do so prudently for many years.</li></ol>



No matter what their day job was, this group made saving and investing part of their routine; they were constantly thinking about smart ways to grow their wealth.



The Savers-Investors path isn’t for everyone. It requires enormous financial discipline and long-term commitment.



<h2 class="wp-block-heading">2. The Dreamers path</h2>



This is perhaps the&nbsp;<a href="https://www.cnbc.com/2019/04/26/how-to-raise-money-smart-children-who-grow-up-to-be-successful-wealthy-financially-literate.html" class="">hardest path</a>&nbsp;to building wealth because it requires the pursuit of a dream, such as starting a business, becoming a successful actor, musician or&nbsp;<a href="https://www.cnbc.com/2019/03/28/harry-potter-novelist-jk-rowling-famous-advice-to-harvard-students-is-dark-but-so-brilliant-and-true.html" class="">author</a>.



Approximately 28% of the folks in my study were Dreamers, and they accumulated an average net worth of $7.4 million — far more than any of the other groups — over a period of about 12 years.



All of them told me that pursuing their dreams was one of the most rewarding things they had done in their lives. They loved what they did for a living, and their passion showed up in their bank accounts.



Those who want to take this path, however, must be willing to work long hours and able to handle financial stress. The Dreamers in my study worked more than 61 hours per week before finally achieving their dreams. Weekends and vacations were almost non-existent.



Trying to make ends meet was not easy. At first, getting a steady paycheck was “nearly impossible,” one Dreamer said. It was even harder for those who had families to support. To finance their dreams, some decided to put off buying a home, while others dipped into their retirement savings.



If you’re risk-averse, this path may not be for you.



<h2 class="wp-block-heading">3. The Company Climbers path</h2>



Climbers are individuals who work for a big company and devote all of their energy into climbing the corporate ladder until they land a senior executive position.



This is the second-hardest path to becoming a millionaire, and about 31% of the rich people I studied fell into this group. It took them an average of 22 years to accumulate a net worth of $3.4 million or more. In most cases, their wealth came from either stock compensation or a partnership share of profits.



To be a Climber, you must have strong relationship-building skills. Networking and making lasting connections with powerful people in your industry is essential.



Like Dreamers, however, Climbers also have long work hours. The ones I interviewed all arrived at the office early and left late. Many were required to travel frequently and even had to sacrifice a lot of their vacation time.



Profitability is a huge factor in determining a Climber’s success. If their company struggles financially, their time and investment there might not be rewarded to the extent they had expected.



<h2 class="wp-block-heading">4. The Virtuosos path</h2>



Roughly 19% of the participants in my study chose this path. Virtuosos are among the best at what they do in their profession. They are paid a high premium for their knowledge and expertise, which sets them apart from the competition.



It took the Virtuosos in my study about 20 years to reach an average net worth of $4 million. Some worked in the medical field, while others worked in law. A handful either worked for large, publicly-held corporations, or they were small business owners with highly profitable enterprises.



Of course, Virtuosos aren’t necessarily born with natural intelligence. They must spend many years continuously studying and learning. Formal education, such as advanced degrees, is usually a requirement.



This means investing an enormous amount of money and time before seeing any payoff at all. Not everyone has the ability to devote significant hours every day practicing their skill or the financial resources to pursue advanced degrees.



<a class="" href="http://richhabits.net/">Tom Corley</a>is an accountant, financial planner and author of <a class="" href="https://www.amazon.com/Rich-Kids-Raise-Children-Successful/dp/1626529868">“Rich Kids: How to Raise Our Children to Be Happy and Successful in Life”</a> and ”<a class="" href="https://secure.mybookorders.com/Orderpage/160">Rich Habits: The Daily Success Habits of Wealthy Individuals.”</a>



This article first appeared on CNBC <a href="https://www.cnbc.com/2019/09/27/4-main-paths-to-becoming-millionaire-here-is-the-easiest-way-says-money-expert.html">https://www.cnbc.com/2019/09/27/4-main-paths-to-becoming-millionaire-here-is-the-easiest-way-says-money-expert.html</a> and is republished with its permission.

There are 4 main paths to becoming a millionaire—and this is the easiest one, says money expert

By <a href="https://www.cnbc.com/ramit-sethi/">Ramit Sethi</a>



Change is a constant and continuous process in life. As we grow older, we change how we dress, what we eat, where we live and who we become friends with.



Yet when it comes to how we use our time and money ― especially for&nbsp;<a href="https://www.cnbc.com/2019/03/26/money-mistakes-millionaires-like-warren-buffett-bill-gates-google-eric-schmidt-never-make.html" class="">high earners and wealthy individuals</a>&nbsp;― we tend to be more resistant to change.



Here’s a little scenario to illustrate my point: I have a friend who earns more than $750,000 a year. He loves his job, but if you asked him how he’s doing, his biggest complaint would be:&nbsp;<a href="https://www.cnbc.com/2019/04/25/stop-saying-im-busy-harvard-study-reveals-how-successful-people-say-no-and-protect-their-time.html" class="">“I’m so busy.”</a>



So imagine my surprise when I visited him one day and pointed to the bags sitting on his kitchen counter.



“Oh, I just got back from the grocery store,” he said.



After a quick pause, I asked, “Have you ever considered having someone else do your grocery shopping?”



He looked at me like I was crazy.&nbsp;Pay&nbsp;to have someone do his grocery shopping? What kind of elitist would do that?



Here was an adult earning $750,000 a year, but behaving as if he still earns $50,000.



<h2 class="wp-block-heading">The hidden paradox of money vs. time</h2>



The concept of buying back your time is one of the most powerful productivity concepts I’ve learned as a business owner.



Buying back your time is all about convenience: By spending on things like Lyft rides, pre-cooked meals or a housekeeper, you’re actually&nbsp;savingmoney because you get back the hours that you’d normally spend doing things that don’t make you happy.



Most high earners fail to recognize the effectiveness of buying back time. Maybe it’s because growing up, their parents didn’t have more money than time, which changes the calculus of how they make decisions. As a result, those high earners never end up changing their approach to work and their personal lives.



This is a huge paradox of earning more money: Many people claim they value time over money, but if you look at their calendars, you’ll find that the opposite is true.



<h2 class="wp-block-heading">Buying back your time isn’t an act of arrogance</h2>



I used to scoff at people who flew first-class and think,&nbsp;Why would anyone spend an insane amount of money something so pointless? We’re all getting to the same destination.



But more often than not, those people were not stupid. They were high earners who understood value in a different way than I used to.



If you earn $40,000 a year, for example, spending $5,000 on a first-class flight is crazy. But if you’re a CEO who earns $450,000 a year, it makes perfect sense.



In business, misaligned beliefs on time and money can cost you dearly ― while getting aligned can become a force multiplier.



Sometimes, people who buy back their time are seen as showing off. But guess what? Many of us already do it:



<ul class="wp-block-list"><li>Eating at a restaurant instead of cooking at home</li><li>Getting the car oil changed instead of doing it yourself</li><li>Taking an Uber instead of walking or taking public transportation</li><li>Paying retail price instead of looking for a good deal</li></ul>



I’d bet that some of you do these things every week and don’t consider it as “buying back your time.” But you actually are because you’re spending on convenience so you can focus on getting results and move on to more important things.



I’m really into fitness, for example, and Theoretically, I could read a ton of material on bodybuilding, structure my diet and fitness routine ― and stick to it.



But I know I’ll never be as efficient as my trainer, who lives and breathes fitness. By paying him, I can trade money for time and get the best results. (Again, I could be doing it all on my own, but I don’t have to; I’d rather spend that time on my business and with my family.)



<h2 class="wp-block-heading">Give it a shot―it might change your life</h2>



I still find it difficult to know when it’s “right” to spend money or time on something ― and I’m not alone.



Think about all the wealthy and successful people, like my friend who earns $750,000 per year, who are uncomfortable with the idea of delegating tasks to others. But if you’re working hard, you should be able to buy back your time.



The key is to ask yourself:&nbsp;What do I get out of it?



What do you get if you got three hours of your time back every week? Do you get to fly your parents out and put them up in an amazing suite? (If you’re Indian like me, the answer is no: They’ll be staying with you.) Do you get to do things you really enjoy, like cooking your own meal or composing music?



If you’re making more money than ever, aim to save at least one hour per week. Think about all the responsibilities that you hate (e.g., doing the laundry, grocery shopping, managing your finances) where there are great solutions available to outsource or systematize the work.



Then, as you get more advanced, you can tackle trickier topics like scheduling, email management and entire project management.



<a href="http://iwillteachyoutoberich.com/" class="">Ramit Sethi</a>,&nbsp;author of the New York Times best-seller&nbsp;<a href="https://www.amazon.com/Will-Teach-You-Rich-Second/dp/1523505745" class="">“I Will Teach You To Be Rich,”</a>&nbsp;has become a financial guru to millions of readers in their 20s, 30s and 40s. He became a self-made millionaire at a young age thanks to his&nbsp;<a href="http://www.iwillteachyoutoberich.com/" class="">website</a>&nbsp;(which he started as a Stanford undergraduate in 2004), book and personal finance courses.



This is an adapted version of a post that originally appeared on <a class="" href="https://urldefense.proofpoint.com/v2/url?u=https-3A__www.quora.com_What-2Dis-2Dthe-2Dgreatest-2Dparadox-2Dof-2Dbecoming-2Dwealthy-3Futm-5Fsource-3Dquora-26utm-5Fmedium-3Dawareness-26utm-5Fcampaign-3Dcnbc-2Dparadox-2Drepost&amp;d=DwMFaQ&amp;c=LO_8KzsOlAGvgA6hdGI4v02U_XLiES0sR51Zca0yIy4&amp;r=fnb6sKq7SKN8iiAQiVc8NQSbL93Ztb9TeGwNUoj2-0Y&amp;m=2n9dCazpBKNeP0sZNLEWPLc0xX64x1aJMuex4HNZRU0&amp;s=C44tttzUAhsbXoPxK8ckmvpylc5UfocO2HdM3gtkpaE&amp;e=">Quora</a>.



This adapted version first appeared on CNBC <a href="https://www.cnbc.com/2019/08/08/self-made-millionaire-this-is-the-greatest-paradox-of-getting-rich-people-fail-to-recognize.html">https://www.cnbc.com/2019/08/08/self-made-millionaire-this-is-the-greatest-paradox-of-getting-rich-people-fail-to-recognize.html</a> and is republished with its permission.

Self-made millionaire: This is the greatest paradox of wealth—and most people fail to recognize it

By <a href="https://www.cnbc.com/kathleen-elkins/">Kathleen Elkins</a> 



Before wealth manager and author <a class="" href="https://davidbach.com/">David Bach</a> made his first million, he was a brand new financial advisor in his early twenties, he tells <a class="" href="https://www.cnbc.com/make-it/">CNBC Make It</a>: “We had someone come and talk to our training class, and as he walked out the door, he handed us this chart.”



Ultimately, the chart “changed my life,” Bach says.



The chart shows two different scenarios:



<ol class="wp-block-list"><li>You start investing at 19 and contribute $2,000 to your account every year until you reach 27. From 27 to 65, you contribute $0.</li><li>From 19 to 26, you don’t invest anything. You start investing at 27 and contribute $2,000 to your account every year until you turn 65.</li></ol>



In the first scenario, you’re only saving and investing for eight years; in the second, you’re saving and investing for 39 years. Still, the person who starts at age 19 would end up with more money in their portfolio in the long run.



Assuming a 10% rate of return, the first person would have $1.02 million by 65, while the second person would have $805,185, a difference of more than $200,000.



<figure class="wp-block-image"><img decoding="async" src="https://www.cnbcafrica.com/wp-content/uploads/2019/07/cnbc-picture-1110x539.png" alt="" class="wp-image-340296"/></figure>



As the chart shows, the sooner you can start putting your money to work, the more you’ll benefit from <a class="" href="https://www.cnbc.com/2019/02/11/how-compound-interest-works-and-how-it-can-help-you-save-money.html">compound interest</a> and the less you’ll have to save to reach your retirement goals.



In terms of where to set aside your dollars, “You have to have this money invested for growth,” Bach says. “You cannot put this money in a money market account or a CD, where it grows at 1% or 2%. You’ll never build wealth.” Instead, Bach recommends putting your money to work in a tax-advantaged&nbsp;<a href="https://www.cnbc.com/2017/08/09/definitive-guide-to-retirement-savings-accounts.html" class="">retirement account</a>, such as a 401(k), Roth IRA or traditional IRA, where it will grow over time.



Retirement-specific accounts offer tax benefits, but there are other ways to invest your money: You can look into low-cost&nbsp;<a href="https://www.cnbc.com/2014/05/06/what-is-an-index-fund.html" class="">index funds</a>, which&nbsp;<a href="https://www.cnbc.com/2017/06/14/index-funds-are-the-smartest-way-to-invest-your-money.html" class="">Warren Buffett recommends</a>, and online investment platforms, such as&nbsp;<a href="https://www.ellevest.com/" class="">Ellevest</a>&nbsp;or&nbsp;<a href="https://www.betterment.com/" class="">Betterment,</a>&nbsp;known as&nbsp;<a href="https://www.cnbc.com/2017/03/13/man-vs-machine-how-to-figure-out-if-you-should-use-a-robo-advisor.html" class="">robo-advisors</a>.



No matter how you choose to invest, the most important step is to open at least one account and start contributing to it consistently.



“Start investing today,” says Bach. “Because the miracle of compound interest starts working the day you put it in place — but the key to compound interest is that it takes decades. It doesn’t get done in days. When you try to get rich quickly, you stay poor forever. This is about building wealth for your lifetime.”



This article first appeared on CNBC <a href="https://www.cnbc.com/2019/07/08/self-made-millionaire-david-bach-a-chart-changed-the-way-i-think-about-money.html">https://www.cnbc.com/2019/07/08/self-made-millionaire-david-bach-a-chart-changed-the-way-i-think-about-money.html</a> and is republished with its permission.

Self-made millionaire: A simple chart changed the way I think about money

By <a href="https://www.cnbc.com/kathleen-elkins/">Kathleen Elkins</a> 



Investing is one of the most effective ways&nbsp;<a href="https://www.cnbc.com/2018/12/19/early-retiree-chris-reining-quit-saving-your-money-and-put-it-to-work.html" class="">to build wealth</a>. Some experts even say that&nbsp;<a href="https://www.cnbc.com/2019/02/26/ramit-sethi-saving-isnt-the-key-to-building-wealth.html" class="">the only way to “truly grow” your money</a>&nbsp;is to put it to work.



If you have an extra $500 to $1,000 and are ready to dip your toe into the markets, “you should put your money in just one thing: the S&amp;P 500,” certified financial planner&nbsp;<a href="https://creativeplanning.com/peter-mallouk/" class="">Peter Mallouk</a>&nbsp;tells&nbsp;<a href="https://www.cnbc.com/make-it/" class="">CNBC Make It</a>.



The S&amp;P 500 index fund holds 500 of the largest companies in the U.S., from Google to Disney to ExxonMobil. It allows you to take advantage of the success of major corporations without the risks associated with buying individual stocks.



“It’s the lowest cost investment that exists,” says Mallouk, who is the president of wealth management firm Creative Planning. “You can buy it at a discount custodian, like a TD Ameritrade, Fidelity or Charles Schwab, where the trading fees are exceptionally low. And with those 500 stocks, you now own about 80% of the market capitalization of the entire United States.” In other words, an S&amp;P 500 fund covers about 80% of the U.S. stock market, so it’s an easy and affordable way for investors to capture core U.S. stock market performance.



Plus, “you have global exposure,” Mallouk says, “because these companies get a lot of their earnings overseas: McDonald’s has shops in China, and Walmart has locations in Europe. So you wind up with a low cost, diversified portfolio that’s invested in the global economy.”



Chairman and CEO of Berkshire Hathaway Warren Buffett agrees with Mallouk’s recommendation.



“It has been a tough time to beat the S&amp;P,”&nbsp;<a href="https://www.cnbc.com/2019/04/25/buffett-says-investors-would-be-served-equally-well-by-sp-or-berkshire.html" class="">he told CNBC earlier this year</a>, adding: “I think it’s the best investment — because most people don’t know how to pick stocks. And, most of the time I don’t know how to pick stocks.”



<a href="https://www.cnbc.com/2017/11/09/mark-cuban-index-funds-are-the-best-way-to-invest-your-money.html" class="">Mark Cuban also champions index funds</a>: In a 2017 interview with Hayman Capital Management founder Kyle Bass, the business titan&nbsp;<a href="https://www.marketwatch.com/story/mark-cuban-tells-kyle-bass-ai-will-change-everything-weighs-in-on-bitcoin-2017-11-04" class="">said</a>that if you don’t know much about markets, the best way to invest your money is to put it in a cheap S&amp;P 500 fund.



At the end of the day, an extra $1,000, if managed correctly, can go a long way, Mallouk says: “If you put $1,000 in the S&amp;P a little over 10 years ago, today, you’d have more than $3,000. Even if we go back before the 2008 crisis — if we go back 11 years — still, you’d have more than tripled your money.”



This article first appeared on CNBC  <a href="https://www.cnbc.com/2019/06/03/wealth-manager-invest-your-money-in-the-sp-500.html">https://www.cnbc.com/2019/06/03/wealth-manager-invest-your-money-in-the-sp-500.html</a> and is republished with its permission.

The smartest way to invest your first $1,000, according to a wealth manager

<div style="display: block; position: relative; max-width: 640px;">
<div style="padding-top: 56.25%;"><iframe style="width: 100%; height: 100%; position: absolute; top: 0px; bottom: 0px; right: 0px; left: 0px;" src="//players.brightcove.net/1571595826001/default_default/index.html?videoId=5596641521001" allowfullscreen="" border=0 frameborder=0></iframe></div>
</div>
According Ade Bajomo, Executive Director, Market Operations and Technology, NSE, the market data workshop which begins on Wednesday will help investors to maximise wealth creation opportunities. He joins CNBC Africa for more.

Wealth Creation

There are 4 main paths to becoming a millionaire—and this is the easiest one, says money expert

Self-made millionaire: This is the greatest paradox of wealth—and most people fail to recognize it

Self-made millionaire: A simple chart changed the way I think about money

The smartest way to invest your first $1,000, according to a wealth manager

NSE set to hold market data workshop

News Tips

Advertise With Us

Wealth Creation

There are 4 main paths to becoming a millionaire—and this is the easiest one, says money expert

Self-made millionaire: This is the greatest paradox of wealth—and most people fail to recognize it

Self-made millionaire: A simple chart changed the way I think about money

The smartest way to invest your first $1,000, according to a wealth manager

NSE set to hold market data workshop

News Tips

Advertise With Us

Newsletters