Building Your Wealth in 2024: Lessons From Millionaires

By MicaR | Online Venture | 2 Jun 2024


If you have paid close attention to the market, you might have noticed that 2022 and 2023 were not a great year for the market. In 2021 and even in 2020, big businesses became even bigger despite Covid Pandemic, however, since the beginning of 2022, the market was sluggish. Some saod the it was due to recession some saod it was due to war. What ever the reason might be we noticed a great loss in the stock market, crypto market, real estate, and inflation. Bloomberg reported that Elon Musk, Jef Bezos, and Mark Zuckerberg lost over $50 billion of net worth. All thanks to the panic sale.

According to one estimation, since the beginning of 2022, the world’s top 500 billionaires lost 1.4 trillion dollars worth of wealth. Elon Musk alone  lost $62 billion, Jeff Bezos lost $63 billion, and Binance CEO CZ lost $80 billion.

Most of the billionaires who lost money in 2022 are from the Tech industry and crypto industry. Coinbase CEO lost 84 percent of his wealth and is down to just $2.2 billion net worth. Binance CEO net worth fell from $96 billion to $12 billion. Crypto Company called Celsius Network has now filed for bankruptcy.

Now, people were asking is this rock bottom, or are we going further down?

What about 2024?

Want to Build Your Wealth? 2024 Might Be Your Year

Do you know how much was bitcoin in its all-time high price? In November 2021, Bitcoin crossed $68,000.

Do you know how much was Ethereum when it reached an all-time high price? In November 2021, Ethereum was $4800.

What is the price of Bitcoin and Ethereum at this moment? Bitcoin is $68K and Ethereum is $3800.

Do you know what Tesla stock price was at its all-time high and how much is the current price? In November, 2021, Tesla's stock price was $1229 and the current price is $714

The current Microsoft stock price is $254, its all-time high price was back in November when it was $343.

These are just a few examples to illustrate how the companies and assets have lost value. If you check every market, whether it is stock, equity, real estate, or crypto, you will see that the markets have substantially lost money. They even say over 1.4 trillion dollars have been completely wiped out from the purse of 500 billionaires globally.

What does this mean to the average investor? What does the market going bearish indicate for small investors? That it is a great time to flex muscles in buying assets, investing in various markets, and holding your portfolio until the bearish run ends.

How to Build Your Net Worth in 2024

Net worth is your cash, liquid asset, and fixed assets minus your liabilities. In other words, your net worth is your actual value in terms of money which can be calculated by adding your cash reserve, the monetary value of your investment portfolio (stocks, crypto, etc.), and property and then subtracting your debt other liabilities. Your net worth measures your wealth reserve, becoming rich actually means building your net worth.

So, how do you build your net worth?

In order to build your net worth, you need to use your earned income to build your portfolio and assets. For example, if you are receiving a monthly paycheck, you need to save some percentage of your monthly income and use your income to buy stocks, bonds, security of deposits, or invest in hedge funds, mutual funds, real estate, or even cryptocurrencies.

You build your net worth by removing your liabilities and adding more cash reserve, building more portfolios, and buying more assets.

You begin by paying your debt. You pay your loan, credit card bills, and mortgages, and clear all liabilities.

You then start saving money.

You don’t just let your money sit in the bank, you also start investing in various markets. You diversify your portfolio.

You then start buying properties, a house, for example.

When you receive a return on your investment, you reinvest and continue to build your wealth.

In order to build your net worth, you need three things, one, a strong income source, two, a saving habit, and three, investment. Building your net worth means building your wealth, you can do this only when you earn well.

What is the Best Way to Make Money

Generally speaking, there are three methods to make money:

Muscle power: You work for a company or an individual and you receive a salary or paycheck. This method of making money is called earned income because you work to make money.

Capital gains: You bought something and later sold it. The profit you make on this trade is called capital gain.

Passive Income: You create a product, it sells on and on and you make money; or you built a business that generates money without having you work. This is passive income.

In order to make money through muscle power (earned income), you will have to actively work. You will have to work 8-10 hours a day. You make money through capital gains by investing money. Passive income methods can make you money by building a business or creating a viral product. This is the best method to make money, however, it is the most difficult method.

You cannot become rich through earned income unless you use your money for investment to earn capital gains or build a business for passive income.

How to Build Wealth According to the Millionaires

If you want to grow rich, you will have to check how the rich people have managed to build their income. Here are some of the methods rich people have used to become millionaires.

Vision board: You need a vision board to manifest your goals. A vision board will help you see what you need to do and how you can do it.

Study stock market: You can become a millionaire by investing in the stock market but before you can do that you need to build your knowledge of the stock market.

Healthy habits: You need to eat healthy food, exercise regularly, and maintain a healthy lifestyle. When they say health is wealth, they did not say this without any reason. In order to work for long hours, you need to practice healthy habits.

Strategic trading: You can make a lot of money through trading however that will happen only when you are trading strategically. One such strategy is short selling.

Read a lot: You can build knowledge only by reading.

9 Personal Finance Tips From Millionaires

Diversify Your Income: Warren Buffet has invested in 65 different companies from Coca-Cola to McDonald's, Apple, Bank of America, American Express, etc. Elon Musk owns different companies such as Tesla for electric cars, Space X for Space Exploration, a tunneling company called The Boring Company, etc.

Invest in Yourself: Investing in yourself means acquiring knowledge and skills to build expertise. You will have to invest in yourself to learn how to invest in the stock market, how to trade in the stock market, or other markets of your choice.

Risk Management: Building income through business and investment involves a lot of risks and you need skills to manage your risks. You will first have to know your risk tolerance level.

Don’t run with the crowd: Just because people are saying it is the best, it does not make the best. You need the knowledge to assess to know what is right and what is not. That’s how you avoid scams.

Harness motivation: Take every opportunity and situation to your advantage. If you failed at something, don’t worry, see why and how you failed and learn from your failure.

Watch/read/listen to educational content: Youtube is not just a platform for entertainment, you can find a lot of informational and educational videos. Also, read online content on the topic you are interested in and build your knowledge. Listen to podcasts and educate yourself about things that will help you build your expertise.

Go against the current: It is easier to swim when you go along with the current, however, that is not the way to progress, you need to go against the current. When most people are focusing on something that is making a lot of money lately, you need to find something that will make a lot of money in the future.

Think outside the box: Don’t take this tip literally, you need to focus on unconventional ideas.

Build skills: Enroll in courses and build your skills. The courses you choose to study should be financially rewarding and something you really want to do. Don’t enroll in any course just because you see someone doing better in the niche.

Can You Make $100-200K Per Year Online?

Making money online is a lot easier than making money offline. If you want to get a job, it is very difficult in the real world, however, in the virtual world you can get a job easily, even if you don't get a job, you can start on your own and it does not cost you a lot of time and money to get started on your own. Let's say you are a graphic designer, in the real world, you will have to apply for jobs in the ad agency and design house and it might be very difficult to get accepted. In the virtual world, you have numerous options from freelance marketplaces like Fiver and Upwork to selling your own design through Etsy and selling design services on your own website. If you are not getting as many contracts as you want, or if you are not making a lot of money as a graphic designer, you can try learning other things and enhancing your skills. For example, you can try learning social media marketing and try working as a graphic designer as well as social media manager.

However, the most important question is, "Can you make $100-200K per year online?

How Can I Make 100-200K Per Year Online?

Most of the people who work in regular jobs are making $100-$200K per year (well, I am not talking about blue-collar workers). If you work online and if you want to make as much as people are making from their offline jobs, you should also be making $100-$200K per year. So, how do you earn $100-$200K by working online?

Here are some of the common methods to work online

Freelancing

Affiliate Marketing

Vlogging

Blogging

eBook writing

Selling online, etc.

Can you make $100-$200 per year by doing the aforementioned work?

Based on my experience, it is difficult to make $100k-$200k per year by working on just one or two methods, however, if you try multiple methods, you might be able to make that amount. For example, you can do everything from freelancing, affiliate marketing, vlogging, and blogging, to ebook writing, and selling online, content creation, to make $100K-$200K. You can maximize your earnings only when you do multiple things at the same time.

You can make a lot of money through affiliate marketing, dropshipping, print-on-demand, digital products, and online courses provided you have SEO and digital marketing skills.

Affiliate marketing is the easiest method to make money as you do not need elaborate skills. If this worked, you can make a lot of money, but for a lot of people, it is difficult because they lack proper strategies.

Can Anyone Build Multi-Million Dollar Business Online

Do you know where you can make most of the money these days?

Well, if you said the world wide web, you are right.

Jeff Bezos was once the world’s richest man, thanks to Amazon. Mark Zuckerberg was once the youngest billionaire. Thank’s to Facebook.

While the world’s most valuable company Apple makes money from the offline business, a lot of big businesses actually made money online. So, the question is can anyone build a multi-million dollar company online?

While it is possible to build a multi-million dollar company online, not everyone has the capacity to do so.

In order to build a multimillion-dollar company, you need to create a product that will have millions of users. Meta is one of the most valuable companies thanks to almost 3 billion Facebook users and over 1 billion users on Instagram and Whatsapp.

Jack Ma is one of the richest people in China, thanks to his company Alibaba and Aliexpress. Do you know what these companies actually do to make money? Well, these companies only provide platforms for users to do business.

In order to build a valuable company online, you need to create something that will be used by tons of people. Your product will be used by tons of people only when they find it very valuable.

Can You Become Rich By Selling Online

There are different ways to sell online, you can sell products or services. You can from your own store, ecommerce marketplaces, freelance marketplaces, and even social media. Some of these selling methods are free, whereas some methods require some investment. When you are selling from your own store you keep the entire profits, however, when you are selling from a third-party store, you pay commissions.

By the way, how much money can you make by selling online? Can you actually become rich by selling online?

This question cannot be simply answered with YES or NO! The answer depends on a lot of things.

Research: You need the ability to research the market, product niches, competitors, etc.

SEO: You need to do SEO on your store and product page.

Designing and manufacturing: You need skills to design and create products.,

Marketing: Selling is directly linked with marketing, you need marketing skills to sell online.

Money: Some online selling methods are free to use but you still need money to run ads.

 

 

How do you rate this article?

7


MicaR
MicaR

Web Designer and Content Creator


Online Venture
Online Venture

A blog on Business, Finance, and Making Money Online. The blog offers useful and interesting articles on how to start and run a business and how to make money online.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.