Almost everyone dreams of being rich. Whether that means having enough money to travel the world, buy your dream house or quit your 9-5 and live life on your terms. Its a dream that everyone chases but it seems like no one knows the exact way to get there.

I have spent the last 5 years learning all about how to make money, build wealth, and achieve that ‘rich’ life.

I have learned that there are 5 main ways that rich people become rich AND this doesn’t include forex trading, multi level marketing schemes, or dodgy business propositions!

These 5 proven methods have helped millions of people around the world become ‘rich’ and achieve financial freedom. In this post, I’m going to share exactly what these 5 methods are, how to start them and who they are most suitable for.

Below, I will shed light on 5 methods that are used by millionaires to become ‘rich’ in 2024. It is important to mention here that a lot of ‘becoming rich’ comes down to your own motivation and consistency to work hard.

See also: How to hold yourself accountable when you start an online business

1. Become rich through dividend stocks

One of the most old-school ways of becoming rich is to invest in dividend-paying stocks. This involves investing in stcoks that pay interest (known as a ‘dividend’) on a regular basis.

The dividends that are paid by these stocks are often much higher than interest that you might get from a traditional savings account, which is why they area popular option for building wealth.

Furthermore, investing in dividend stocks is a good way to generate passive income. If you diversify your portfolio, it is possible to receive dividend payments at regular intervals throughout the year, such as each month.

Most dividend stocks pay four times per year and the average dividend yield (the percentage of interest that you will receive) is between 2% and 5%.

That means, if you invested £10,000, you could receive £200 -£500 in dividend payments.

Becoming ‘rich’ through dividends is a long game. But it is worth the wait!

Rich people invest in dividend stocks for years and reinvest the dividends that they earn to increase their wealth. This is called compounding.

I used a dividend compounding calculator to work out how much I could earn per year through dividends if I invested £10,000 into a stock that had a 5% yield for 20 years. In the last year I would make over £16,000.

Now, imagine if I topped up my initial investment by a further £5000 each year. Well, then the dividend earnings for the last year would reach £52,000 (which is the same as a good salary!).

2. Start your own business

Another method of becoming rich that is used by a lot of millionaires is starting your own business. A lot of people know that starting a business can make you rich yet, a lot of people are too afraid of failure to start.

In truth, owning a business is one of the most popular methods of getting rich. When you own your own business, there is no limit to how much money you can make AND you can scale your business to generate passive income - this means that you can make money without directly working for it.

Anyone can start a business, you just need a plan.

I am a big believer in the fact that anyone can start a business, you just need to plan of action that will keep you on track.

I created The Ultimate Guide To Starting an Online Business. This is a 30-step plan that will walk you through each stage of the process. My the end of the guide, you will have the foundations of a sustainable and scalable online business that will continue to grow in value over time.

Contrary to popular belief, you do not need a business degree, a wealthy family or a huge social following to become a successful entrepreneur.

Starting a profitable online business requires 5 main components:

• An idea that will SOLVE a problem (check out these 39 online business ideas!)

• A clear target audience

• A source of traffic

• A strong marketing campaign

• Consistency

The last one if the most important! Most businesses don’t make a profit until at least one year which means that you will need to stay consistent even when you don’t seem to be getting any reward for your efforts.

3. Invest in startups to become rich without your own business

If you want to returns of starting a business without actually starting a business yourself, this could be a good option for you!

Investing in startups involves investing in new businesses that need funding for development. You can think of it a bit like Dragon’s Den (but on a smaller level and Deborah Meaden isn’t there!).

Investing in a startup promises big rewards for those who risk wisely. The UK is full of new businesses aiming to make it big and returns can be quite lucrative for early investors.

But, before jumping into startup investments, do thorough research. Look for startups with a great vision, a business plan that can grow, and a solid team.

• Assess the startup's leadership – A strong leadership team is crucial for success. They should be passionate, have a clear plan, and know how to achieve it.

• Evaluate the market potential – A great product needs a market that wants it. Make sure there's a need for what the startup offers and room to grow.

• Diversify your portfolio – Don't put all your money in one place. Spread your investments to lower risks.

True, investing in startups is risky and not for everyone. Yet, high risk can come with high returns. All high-reward ventures need patience and investing in startups won’t make you rich quick.

If this sounds like an appealing option for you to build your wealth, you can find startups that need investors on sites such as Crowdcube, or the Angel Investment Network.

You can also invest in startups directly by going straight to the business founders and offering your support. If you choose this option, make sure to secure a written agreement and have this signed and in writing.

4. Save Yourself Rich

You don't need a huge income to start getting rich. Instead, you can slowly grow your wealth by saving small amounts of money each day.

Begin with effective saving strategies and watch your savings grow. It's all about being regular and disciplined in how to save money for wealth accumulation.

To make the most of your efforts, consider saving into a high-yield savings account. This is a type of account that offers a high interest rate.

Can you really ‘save yourself rich’?

The topic of saving money to become rich is a hot one! A lot of people argue that you can’t really save yourself rich because once you spend the money you have saved, it will be gone.

However, if your goal is to be able to afford travel or your dream house, saving can certainly get you there! Remember, everyone’s idea of a rich life is different.

How to save for a rich life

The art of saving money is all about planning and budgeting.

Picture having a budget that shows what you earn and spend. This helps spot areas to save on. Making a budget is your first step. Then, keep track of your spending. Knowing where your money goes is key for saving more.

• Look at your spending to find where you can cut costs.

• Stop spending on things you don't need to save more.

• Set aside a part of your income for savings as soon as you get paid. This makes saving a must-do in your budget.

• Think of the future benefits of saving over spending now. Saying no to today's wants helps grow tomorrow's riches.

• Use an automated savings app to make saving easier

Follow these steps to make saving a regular habit. Your savings will grow, letting you invest and secure your finances. Remember, saving today is like planting seeds for a future full of prosperity.

1. Make savings goals that match your dreams of getting rich.

2. Have an emergency fund to protect your savings plan from unexpected costs.

3. Use automatic tools for consistent savings.

4. Check and adjust your budget as needed to keep up with financial changes.

Starting can seem hard, but keep at it. Your savings will build up, helping you create more wealth. Being proactive in saving is key to your strategy, making you financially stronger and pushing your efforts further.

5. Secure a 6-figure salary

Another way to become technically ‘rich’ that works is to secure a 6-figure salary. This means working in a job that is paid well above minimum wage.

Traditional six-figure salary jobs, such as becoming a surgeon, dentist, accountant, or lawyer, require years of education and experience. Furthermore, the jobs themselves can be very taxing!

Luckily, there are other ways to earn 6-figures from your day job in 2024.

If you want to bag a high salary but you don’t want to spend 7 years at medical school, you need to learn a high-paid skill that is in demand. These are skills that people, or companies, are willing to pay a high rate fore because they are relatively rare or niche.

Some examples of high-paid skills that you can learn without going to university include:

• Coding

• Technical writing

• Web design

• Social media SEO

• Digital marketing

• Copywriting

• Data analysis

You can find a range of great courses online to learn these skills and much more. Once you have learned everything you need, consider creating a portfolio or personal website to showcase your skills.

Then, you can apply for full-time roles or work as a freelancer. From my experience, freelance work comes with higher rates because you can charge per job or per hour rather than agreeing on a set salary.

When I worked as a freelance technical writer, I was able to earn £150 per hour.

Turning your freelance job into a small business

You can increase your income even further by turning your side hustle into an online business. The best way to do this as a freelancer is to start your own agency. This involves forming a team of other skilled people and booking clients. You can make a profit by charging the client a higher price than the rate that you pay your employees.

What Is Considered 'Rich' in the UK?

So, how much do you actually need to be considered ‘rich’ in the UK?

The answer is not straightforward. But looking at wealth benchmarks offers some insight.

The Times points out that being in the top 2% usually means earning over £100,000 per year. But being rich isn't just about numbers.

Being ‘rich’ comes down to how financially comfortable you are. If you earn £100,000 per year but have nothing left at the ned of each month, you probably won’t feel ‘rich’. On the other hand, you could earn £50,000 and have money left to pay for holidays, new clothes and meals out and feel much richer!

For a lot of people, being ‘rich’ is also about freedom. This could mean the freedom to work how you want to, live where you want to or travel where you want to.

A good idea is to write down what you mean by ‘rich’ and then choose a path, from the options above, that will lead to your long-term goal.

For example, if being rich to you means being able to afford regular holidays and having spare cash for weekend activities, learning a high-paid skill and increasing your salary could be the way to go.

Whereas, if you looking to generate passive income, be your own boss and live a life of luxury, starting your own business might be the best path.

Final Thoughts

A lot of people dream of becoming rich. However, only a few people actually take the steps that are need to get there.

In this blog post, I have highlighted five proven methods that are used by rich people to earn their wealth. If you are serious about becoming rich and achieving your dream life, now is the best time to start! Don’t let your lack of action be the reason that you don’t succeed.