While the average American has to work at least 40 hours a week to survive, rich people generally know how to stay rich and become richer with little effort. It’s one thing to increase personal wealth by working hard; it’s another to increase wealth passively and literally let the Money roll in. 

The most impressive part is how the rich easily increase their wealth. They do so in various ways, and each approach can be a valuable financial lesson for the rest of us. You may not have that plush life yet, but following in the footsteps of the affluent might help you get there a little sooner. 

1. Multiple Revenue Streams

One thing many rich people have in common is they have multiple streams of revenue. Instead of relying on one source of income, they make sure they have money coming in from different sources. 

For the average person, having multiple revenue streams means working multiple jobs or stringing together more than one gig. For the wealthy, diversifying their investments means bringing in as much money as possible.  

2. Invest in Technology

Technology has become an important part of our everyday lives. We can’t imagine going without it, even though smartphones didn’t exist 30 years ago, and no one had a laptop or desktop computer in their home 60 years ago. 

With advances in Artificial Intelligence (AI) and augmented and virtual reality, it’s safe to say technology is here to stay. The wealthy invest in tech because of its longevity and profitability, making them a ton of money. 

3. Buy Dividend Stocks

Dividend stocks are business stocks that pay dividends when the company profits. Companies typically pay dividends to shareholders every quarter.

You don’t have to be a millionaire or billionaire to purchase dividend stocks, but they have the means to buy them in large quantities. The more stock they hold, the bigger the dividends they receive. 

4. Own Popular Franchises

Buying into a Franchise is expensive but potentially profitable, especially if it’s popular and in the right location. The rich have the capital to own franchises without managing the day-to-day operations. 

Some of the most lucrative franchises rich investors buy include pizza joints, fast-food restaurants, and gas stations. Owning several of these places can bring in serious money on a consistent basis. 

5. Commercial Real Estate

Commercial Real Estate has the potential to be highly profitable when it comes to property Investing. The wealthy can buy one or more commercial properties and rent them out long-term. 

After paying maintenance costs, property taxes, and the mortgage, any money left over from the rental is pure profit. Multiply that by several properties, and the incoming revenue is substantial. 

6. Intellectual Property Rights

Superstar performer Michael Jackson famously bought the Beatles’ music catalog rights in the 1980s. That was one of the most financially rewarding investments in history.

The affluent know buying intellectual property rights can earn them a decent passive income. The types of intellectual property rights purchased include copyrights, trademarks, and patents. 

7. Become an Angel Investor

Wealthy people are aware of promising small and startup businesses, especially in the tech sector. When the rich find a startup they want to invest in, they do so usually in exchange for a small ownership stake in the company. 

Their investments in the startup can be a one-time cash infusion or an ongoing flow of money to support the business. Angel investments are high-risk, high-reward propositions, but the rewards can be tremendous.

8. Self-Storage Business 

Believe it or not, self-storage companies are an incredibly profitable business venture. You likely know at least one person who keeps property in a self-storage unit. 

Self-storage businesses are low-risk, high-reward investments. Renters pay a monthly fee to store their property, bringing in a monthly income. If the renter fails to pay, the business auctions off leftover items, minimizing losses. 

9. High-Yield Savings Accounts

Most traditional banks offer savings accounts with an annual percentage yield (APY) of 2% or less. On the other hand, many online banks have savings accounts with an APY of at least 4%. 

The more money deposited in a high-yield savings account, the more interest it earns. The wealthy can deposit significant sums of money and receive healthy returns.

10. Real Estate Investment Trusts (REITs)

Affluent people who are not interested in assuming all the risks of owning an investment property can join a real Estate investment trust (REIT). A REIT works by pooling the money of multiple investors to purchase commercial real estate.

Since most REITs are traded publicly like traditional stocks, they’re easily bought and sold. Properties usually bought as REITs include shopping malls, hotels, office buildings, and warehouses. 

11. Mutual Funds

Mutual funds work a lot like REITs: instead of one person assuming all the investment risk, a group of investors pool their money together. Mutual funds are generally part of a diversified portfolio. 

This diversification allows wealthy investors to profit from different business sectors instead of a single one. Certificates of deposit, money market funds, and Treasury bills are some examples of mutual funds. 

12. Venture Capitalism

Venture capitalists (VCs) are like angel investors: both invest in small or startup businesses they believe have the potential to succeed. The big difference between them is that VCs work for companies investing other people’s money. 

Angel investors are more likely to be directly involved in company operations, but VCs are usually not. VCs tend to invest more funds in a company to acquire a greater ownership stake. 

13. Luxury Residential Rentals 

Traditional home rentals can be risky for landlords owning a few properties. However, wealthy people owning more than one luxury property can rent their spare homes for tens of thousands a month. 

Celebrities and other wealthy folks may decide to live in a mansion without the commitment of ownership. For the owners, after paying the mortgage, property taxes, and maintenance, the remainder of the rent is pure profit.

14. Branding 

One trait of some of the most affluent people today is their ability to brand themselves successfully. They frequently connect their public image to a specific product or service, earning a tidy sum along the way. 

From computer software to social media sites and cosmetics to shapewear, some of the richest people in the world add to their already enormous wealth with branding. Only some people can pull this off; when they do, it pays dividends. 

15. Autobiographies 

If you look at the bestselling autobiographies at any given time, they are likely about someone already rich and famous. They’re not writing (i.e., having a ghostwriter) their life story for free. 

The royalties earned from their books add to their already overflowing coffers. Autobiographies are a great way for the rich and famous to earn money and garner publicity for themselves and their businesses. 

16. Endorsements 

A powerful marketing approach to creating interest and generating business is having a wealthy person endorse a product. It’s like they’re giving the company a stamp of approval. 

Rich people already have power and influence and can use them to persuade consumers. They can earn upwards of millions of dollars by adding their name and likeness to a product or service, which is a win-win for both parties.

Want to be a Millionaire? Invest in These 3 Vanguard ETFs for a Comfortable Retirement

Vanguard has been revolutionary in the creation of low-cost funds for investors. They were the first to create the index fund and then started to develop low-cost ETFs to compete with companies like Blackrock, which owns iShares ETFs. 

Want to be a Millionaire? Invest in These 3 Vanguard ETFs for a Comfortable Retirement

10 Habits of Self-Made Millionaires That Can Make You Rich

Looking to live the millionaire Lifestyle? It’s not as far-fetched as you might think – in fact, the daily habits of self-made millionaires can set you on the path to wealth. These are not complex secrets or magic tricks but simple, straightforward routines anyone can adopt. So, if you’re curious about how the wealthy got where they are and how you can follow in their footsteps, you’re in the right place.

10 Habits of Self-Made Millionaires That Can Make You Rich

Originally Published on https://thefrugalexpat.com/

Steve Cummings Journalist, Traveler, and Personal Finance Enthusiast

Steve Cummings is a traveler, writer, and personal finance enthusiasts that has taken an adventure to leave his home country to travel and live around the world with his family. Through many years of learning he seeks to help those to save more and travel better. He has been featured in MSN, The Associate Press Wire, and various other content outlets with his writing and publications through his website The Frugal Expat. In the last six years, He has traveled to all seven continents, over 30 different countries, and has lived abroad learning and teaching others about good financial habits and travel hacks.

As an ex-English Teacher, he hopes to provide good tips and education on money and travel to help people think outside the box and achieve the impossible.