15 Most Common Ways Rich People Get Rich

Hey there, Alexa! Now, doesn't it feel like sometimes there's like a secret sauce to how the rich make their fortune? It's kind of frustrating watching other people climb the earning ladder while you struggle just to keep steady in one place. Maybe there's another path you haven't considered before. Maybe you've heard of it, but it hasn't been framed in a way that makes you think that it could be for you.

Well, we're here to tell you that not only is there space for you at the top, but also that there are enough different ways to get there that you can find what works for you. If so many people have gotten rich through these methods, why shouldn't you be in on the fun too? Here are 15 of the most common ways rich people get rich.

Starting off at number one: they buy a cheap home and they hold it while it appreciates. Twenty-four years ago, the median cost of a home was around 150k. Sounds cheap to you now, right? Well, that's not what most people thought at the time; that was expensive for them. But now that home is worth 450k. The people who bought those homes didn't do anything else with it besides live in it. They sat on it, lived their lives, watched their TV shows. So if you think apartments, homes, and real estate are too expensive right now, you should see what they'll be like 24 years from now. Then you'll be kicking yourself for not buying anything sooner.

Number two: they sell other people's time. Every rich person knows they'll never have enough of their own time to make the money they want. They have to sell other people's time. They have to sell your time. Think about Amazon; it's not just a company; it's a giant clock powered by 1.5 million employees whose hours translate directly into massive revenue streams for those at the top. They build systems, companies, and networks that sell the time of thousands of people. This time is then converted into data, which they can further use to scale. Every minute an employee works feeds into understanding what their customers want and delivering those wants in the most efficient way.

Number three: they steal wealth through disruption. The taxi service industry is seeing an annual decline of 10 to 20% globally. Global revenue from music downloads has also declined by 10 to 20%. Why? Well, because their industries were totally disrupted by Uber and Spotify. Those companies innovated and stole customers and their money from older outdated industries. Streaming services flipped the music and film industries. Renewables are reshaping the energy sector. This isn't mere competition; it's a full-scale heist of market share and influence, executed not with malice but with sharp forward-thinking innovation.

No matter what business you're starting—a coffee shop, a co-working space, or the next big thing in tech—you have to know that it's up to you to steal the wealth. And you do that by giving consumers something that everyone else isn't giving them. Give them ease, convenience, or an experience. Give them something that aligns with their values or saves them time. People get rich not just by joining the market; no, they get rich by redefining it.

Number four: their money makes money. Rich people have taken the time to learn about the stock market, and then they've invested another 30 to 50 minutes of that time to buy stocks that profit off the companies that you consume. They own a piece of the company that you're enriching while you're buying the latest iPhone that only you can use and that depreciates in value. They're buying stocks in Apple. Money under your mattress stays the same; in fact, it loses value. But money invested wisely can grow. The rich know they can't just save; they have to multiply their investments, and they program their financial assets to work around the clock to create a compounding effect.

Number five: they buy things that other people want. In the 1980s, Israeli businessman and art collector Jose McGravy bought artist Andy Warhol's "Ma" for $177,000. In 2016, he sold it for $17.4 million. In 1984, an unknown buyer bought Jean-Michel Basquiat's "Untitled" for $19,000 and sold it for $110.5 million in 2017. When you own something that other people want, something with a limited quantity, it drives the price way up. Collectibles appreciate over time because of their rarity and demand. They're also tangible assets, so they hedge against inflation and are a safe haven asset that can really stand the test of time and changing economic climates.

The top three collectible industries are art, rare coins, and vintage cars. And you know getting started in collectible investments in the past has seemed pretty intimidating and complex, right? But this is changing thanks to companies like Masterworks, who are also the sponsor of today's video. Even if you don't have the time, energy, or knowledge to invest in art all by yourself, you can still do it because Masterworks does all the heavy lifting for you. They do the research, they invest in quality and authenticity, they preserve the condition, and they do the networking with other collectors and dealers to facilitate the sale. Since 2019, they've exited 23 paintings all at a profit and have distributed back more than $60 million to investors.

And with previous investable offerings from art icons like Picasso, Basquiat, and Banksy, it's easy to see why shares of some Masterworks' previous paintings have sold out in minutes. So how can you start that journey? Well, you can still skip the waiting list by scanning the QR code on screen or by going to masterworks.io.

But are they the most talented? Well, probably not. There's always someone better out there, someone with more talent. But those people are still sitting in their office chairs because they didn't douse their talent in gasoline and light it on fire. They just allowed it to exist, allowed it to coast along. And you know why? Because we humans tend to get really embarrassed by stuff. We get embarrassed by wanting to be successful, for wanting recognition, and for wanting to be the best. We're scared that if we do put in the work, we'll fail, and if we fail despite the hard work, well, there's no hope.

But once you forget about being embarrassed and keep on fueling your obsession with training, laser focus, and the idea that success is your only destination, well, hey, you will get there.

Number seven: they buckle down to the education grindstone. People with a college education earn around $40,000 more a year than those with just a high school diploma, and Ivy League graduates earn about $60,000 more than non-Ivy League graduates. Now, the tuition fees are exorbitant; sure, the average Ivy League education costs about $90,000 a year. But if you choose to study something like law, then you're looking at a potential starting salary of $90,000 a year.

So, by the middle of your career, you're making around $260,000. The initial costs are high, but so is the return on investment. The chances of you making that amount of money if you choose to study archaeology or history are very slim. So it's not just about getting an education and going to just any college; you have to choose the right field and get into the best institution. And for that, you need focus, discipline, and a very detailed vision and plan of action.

Number eight: they secure and exploit untapped resources. The global oil industry is worth around $3.3 trillion. This might seem like a legacy business now, reserved only for the ultra-wealthy who inherited their wealth through their grandparents' good decisions, but it wasn't always that way. At one point, all of the biggest resources were untapped: oil, gas, gold, minerals. And people got rich by securing them.

Now we've got different types of resources that you can secure: data, renewable energy, and the attention economy. The attention economy is especially exciting because there's such a low barrier to entry for it. Anyone can do it as long as they've got a phone. If you can figure out how to capture people's attention and keep it there for as long as you can, well, you can secure it, and then you can sell it.

Number nine: they replicate success in underserved areas. Now, the Harvard Business Review said that entrepreneurs who have seen a successful model work in one place and then take that model into an area that's underserved see a 50% higher return than the saturated market. Why face off with competition and fight for market share when you can take that exact model and dominate with it in another place?

Look at Facebook and VK. Facebook dominated the social media landscape for their early years, but they didn't really focus on localizing their services. They didn't factor in the different culture, language, and even regulatory factors. They left the door wide open for VK, Russia's answer to Facebook, that used their model but tailored it to meet the needs of its users.

Number ten: they create something that outlives them. The Lord of the Rings books have sold 150 million copies. Winnie the Pooh and his friends have become a beloved franchise, with book sales, merchandise, and adaptations that have been generating income long after the writer's death. Creating something that outlives you isn't just about writing a book or a song; it's about packaging an idea and a world that you can sell across different industries.

Enduring ideas will have adaptations and more products, and they can be acquired by bigger companies later on. And when someone creates something that outlives them, they pass that wealth onto their children, so it's always kept in the family.

Number eleven: they use first mover advantage in waves of disruption. The rich know that first movers in new markets can capture up to 70% of the profit. The faster you move, the more money you can make, but you have to be at the front for that, and you can't be tame about it, which is the risk they're willing to take. First movers never know for sure if it's going to work out, but they're willing to hedge their bets.

They're the people who invested in crypto when it was a mere idea, and that paid off, didn't it? The first movers also determine the entry barriers for everyone else, so they have the power to keep others out if they want, which leaves more profits for them.

Number twelve: they capitalize on other people's addictions. The richest people know that the most loyal customers don't just want your product or service; they need it. Someone else's addiction helps them accumulate more money without much work or marketing. It's like a consistent built-in consumer. We see this with a number of people who are rich because of big pharma.

We see it in food industries where sugar and junk food dominate the market. We even see it in tech. TikTok is a billion-dollar company because they have millions of users who are addicted to that scroll. The crossword puzzles, Candy Crush, and any number of games you play on your phone are all creating a pipeline that is powered by your addiction, and the pipeline ends in the pockets of the people who created those apps. Find the easiest, most low-cost, and low-effort way for someone to get a dopamine hit, and my friend, you will have loyal customers.

Number thirteen: they've worked out how to scale. Only 9% of small businesses make over $1 million in profit. A small business can support you, but if you want to be rich, you need to scale. From the moment they start the business, the rich start making plans for how they can capture a greater market share. They look at how they can be more efficient and where they can cut out costs and increase prices to improve their profit.

They start investing in top talent to join them. Studies have shown that companies that focus on growth and scale end up making over three times more money in just three years. Scale is imperative to success, but you've got to work out how to do it for your company.

Number fourteen: they work on commission. The insurance industry is worth around $6.3 trillion. The real estate industry is in the trillions too, and the people working within that industry, no matter what level they start at, can get a piece of that pie. Commission directly rewards hard work and success. They give people the potential to earn more, unlike the glass ceiling of regular salaries.

With commission, your income grows as your skills and network expand. The more deals you close, the higher your earnings, and that is a great motivator.

And number fifteen: they use other people's money to make money. Because why use your own money when you can use someone else's to increase your returns? They can borrow the money from the bank to invest in real estate. They apply for grants and funding to gain capital for their businesses. They approach fellow investors to join in on projects with them.

Elon Musk didn't use 44 billion of his own money to buy Twitter; no, he secured 13 billion in loans and then got funding from different equity investors. Warren Buffett uses the float generated by Berkshire Hathaway's insurance operations as a source of capital. He invests the float in different funds to generate returns; that's his job. Okay? He makes a lot of money from it, and he's using other people's money to do so.

Now, Alexa, since you stuck with us until the very end, of course you're getting a bonus! Today's bonus is: they get rich together. They don't achieve success in isolation. Okay, nobody does. They leverage the power of networks, partnerships, and collaboration to build wealth collectively. This way, they can pool resources, share risks, and capitalize on their diverse skill sets.

Steve Jobs and Steve Wozniak combined their marketing and technical skills to found Apple. Their skills were very different, and they knew they complemented each other. The wealthy will form investment clubs to pool their capital, which gives them access to better deals. Think about the PayPal Mafia; it was made up of former PayPal employees like Peter Thiel, Elon Musk, Reid Hoffman, and a range of other people. They invested in each other's ventures and pooled their money to invest in different projects.

What was it that President John F. Kennedy said in one of his speeches? "A rising tide lifts all boats." Well, if you can establish a successful network, together you can elevate everyone's opportunities and wealth.

And that's it for today, Alexa. We hope you found this one valuable. We'll see you back here next time. Until then, take care, my friend. [Music]