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3 Ways To Build Wealth At An Early Age

By Mark Riddix

EntrepreneurI was recently reading a Forbes article about young people who have made over $1 million dollars before they graduated from college. These young people were adept at identifying problems and then creating companies to solve those problems. They were ambitious, and they shared many common traits. The article takes about “their common thread: singular focus, preternatural financial savvy and the optimism and confidence to wrest financing from seasoned investors.”  

 Listed below are the 3 best ways to build long term wealth:

Entrepreneurship

Starting your own business not only provides you with a great sense of accomplishment, it also allows you to take control of your financial future. You control how much money you make depending on the time, energy, and effort that you put into your business. Becoming an entrepreneur is hard work, but the rewards are excellent. The world’s largest companies (Walmart, Nike, McDonald’s) were built by individuals with an entrepreneurial spirit. Who says that wealth is only for the Sam Walton’s and Phil Knight’s of the world? Jamie Wells started Glasses Direct after having trouble finding affordable eye glasses. Glasses Direct generated over 2 million dollars in revenue in its 1st year. Ashley Qualls started WhateverLife.com which offers pictures and graphics for online websites. WhateverLife.com is now worth well over 1.5 million dollars. If you want to be an entrepreneur, just find a business idea that you are passionate about and get started!

Innovation

Innovators are the inventors and re-inventors. You don’t have to invent the wheel to be an innovator, just find a way to improve upon the existing one. Innovators like Steve Jobs and Pierre M. Omidyar built their fortunes by developing new uses for technology. Jobs has become a household name by integrating digital technology into everyday life with the iMac, iPod, and iPhone. You may be wondering, who is Pierre M. Omidyar? Omidyar created a small online auction website from his home known as Auction Web. He changed the name from Auction Web to eBay in 1995. Today, eBay is valued at over 30 billion dollars. You too can be an innovator. Do you have a new concept, idea or invention? Do you have an idea that will improve upon an old way of doing things? You can become wealthy coming up with ideas that help to make peoples lives easier.

Investing

Becoming a successful investor involves being disciplined, committed and having strict patience. Investing involves using your best resources (money, energy, effort) to create a profit. Investing relies heavily on the power of compounding. That’s why the earlier that you start, the greater your potential return will be. Warren Buffett, the world’s greatest stock investor, started investing at a very early age. He invested in his first stock at the age of 11 and bought a 40 acre Nebraska farm at the age of 14. Famed real estate investor, Donald Trump, invested in his first real estate project with his father while he was still in college.

So, what are you waiting for? Get started today! You may be the next great entrepreneur, innovator or investor. If you are already past your college years, don’t be discouraged. It’s never too late to start building your fortune.

Do you have any good entrepreneurial stories? Any qualities that you think are important in addition to the 3 mentioned in this post?

(photo editor: Search Engine People Blog)

Mark Riddix
Mark Riddix is the founder and president of an independent investment advisory firm that provides personalized investing and asset management consulting. Mark has written financial columns for Baltimore and Washington, D.C. area newspapers and is the author of the book, Your Financial Playbook.

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Comments

  • gina

    I don’t know if everyone can be an entrepeneur or invent something, but certainly EVERYONE can invest. Better to start when you are young, but for those of us who did not, it is not too late!!

  • http://madsaver.com Mac

    Good go-get-em advice for people who need a little push in the right direction. Though inventing exactly what is always the problem…

  • http://www.youngandthrifty.ca youngandthrifty

    Real estate is another good one! The housing prices here in Vancouver is a good example.. about 5 years ago (when I was in my early twenties) the housing prices here were standard, and now they have really skyrocketed (doubled in my neck of the woods…)

    Entrepreneurship is the way to go, wish I was computer savvy enough to be the developer of facebook, or plenty of fish =)

    • http://madsaver.com Mac

      House prices…skyrocketed? Wow, that would have been nice. Not so much south of the border. My house (owned 7 years) is going on the market in a few weeks and will list at a price lower than when I purchased. And that’s after putting in an extra $20K+ in upgrades.

      Real Estate can be a good investment, but not as much as it once was.

      • Mark Riddix

        Real Estate is a good investment as long as the property is desirable and it is held for the long term.

  • http://www.yourfinances101.com/blog David/Yourfinances101

    I think anyone an be an entreprenuer if they want to.

    We ALL have some sort of God-given talent. Its just a matter of harvesting whatever that may be into something that other people are willing to pay money for.

    This is over-simplified, but true.

    • Mark Riddix

      David, I agree with that statement. Everyone has some God give ntalents that they can use start a business.

  • Winston C

    Only successful people are remembered and their stories are passed on as examples of success that can be achieved in their perspective fields. But while they succeed, millions have failed. Right now, I aspire to be a half-decent investor, particularly in real estate. Once I have saved enough money, I want to buy a property in Chinatown of NYC. Apartments that used to be undesirable are now very hot properties thanks to thousands of immigrants coming to NYC every year, some have tripled in value over the course of ten years.

  • Matthew Butensky

    How about trying cloud computing software which can keep you organized and working pretty efficiently. Remember in business, efficiency=more money:)

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