Quote:
Originally Posted by
Don Carlos 
A former titan of my particular industry put it this way: "Nobody ever got rich off a salary. No matter how high the salary." If you want to get rich -- I mean fuck-you-money rich -- then you need to own something. That can be real property, it can be intellectual property, it can be a company, it can be a monetized idea, it can be patents, it can be a personal brand, it can be privileged access to something desirable and in short supply, or whatever the case may be. But ownership confers wealth. More specifically: ownership of something others want to buy* from you confers wealth. In this sense, no, trying to maximize a corporate salary and squirrel away as much money as you can save over 30+ years is not going to make you wealthy. If you want to become really wealthy, you need to take risk and work your ass off to realize the return on that risk. *Whether literally or figuratively.
Quote:
Originally Posted by
Don Carlos Spend less. Invest more. Most people get tripped up on the "invest" part, though. Get-rich investing is not socking it all diligently into a 401k. Get-rich investing means strategically investing that money into something like a startup business.
Quote:
Originally Posted by
Manton The distinction between wealth and a high income is true, of course, and often overlooked but I think the quote is wrong, or out of date. At the top end in corporate America--and I don't just mean CEOs but also the top tier of executives--it is quite possible to get rich on a salary (plus bonus plus stock grants). These people can make millions per year, live lavishly, and still have plenty left over to amass tens of millions over a career. In banking, the money is bigger and the number of people who earn big time are more.
Quote:
Originally Posted by
munchausen The professionals that get rich buy a bunch of other professional's time and then resell it at a profit.
These quotes all capture parts of my opinions on the topic. In abstract, very general terms, small-timers convert their time into money (i.e. they earn a salary). Because everyone's time is limited, this puts a ceiling, perhaps a very high one, but a ceiling nonetheless, on wealth that can be amassed this way. It is possible to raise this ceiling and become rich by converting other people's time into money (e.g. managing others or owning your own business) or converting your own money into more money (e.g. investing, including investing in your own business). To become truly mind-bogglingly wealthy, find a way to use other people's money to make money. The further you progress toward this last model and the better your plan for implementing it, the wealthier you will become.
