4. Understand the Nature of Money

Many people perceive money as a commodity. Once you have money, you just have to spend it until there is nothing left. That is the reason why many are poor and still struggling to do away with debts. The rich recognize how money works and perceive it in a different way. They also recognize the fact that it will take time to accumulate money. So when they have children, they help them learn the value of money.

They inculcate in their minds that they should start saving while they are young. Some encourage their teenage kids to learn about investment banking and the stock market in order to grow their wealth. Soon, these children become rich as their parents.

5. Start Your Own Business and Eventually Sell It

This is the most effective and proven way to become rich. If you can sense the customer needs and build a profitable business that addresses their needs, then you have created real value. It could be a cleaning business, a consultancy or an investment bank. Though it might probably take years of very hard work to build up the enterprise, it is worth the investment.

Yes, the risks are high and you need all the skills, dynamism, perseverance and diligence of an entrepreneur. But if you can pull it off, the potential rewards are huge.