While there’s no one-size-fits-all solution to building wealth, lessons could be learned from listening to the advice of self-made millionaires. Some investors swear by real estate, while others are proponents of starting a business to build wealth. Either way, there’s a different journey for everyone looking to reach the millionaire status.
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We reached out to a few self-made millionaires to learn about the best investments they’ve made to get to where they are right now.
Best Investments These Self-Made Millionaires Made
Various roads could lead to riches, so we spoke with self-made millionaires who shared what investments helped them build momentum when trying to build wealth. Check it out.
Investing in Business Coaching
“One of the best investments I’ve ever made was also among the most intimidating due to the significant amount involved and my unfamiliarity with the venture,” remarked Jeff Rose, CFP and founder of Good Financial Cents. “I invested approximately $8,000 in a business coaching program. Despite my initial skepticism about the concept of coaching, I trusted the recommendations from others.”
While you could turn the money from your 9-5 into real wealth, you can fast-track the process by starting a business that produces real income. In this case, Rose spent the money on taking his blogging business to the next level by learning from those who did it before him.
Investing in business growth is daunting because so many unknown variables are at play. When asked about how long it took him to see any return on his investment in the business coaching program, Ross replied, “It took more than a year to see a return on this investment. However, after investing over $24,000 in the program over three years, my annual revenue nearly tripled, netting me over $500,000.”
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We also spoke to Gabby Wallace, a business coach with over two million YouTube subscribers and a real estate investor, about becoming a self-made millionaire. She echoed a similar sentiment when it comes to investing in business coaching.
“Time invested in observing and learning with people I consider successful because their experience and examples as role models is better than any business class,” she said, praising her first business mastermind for helping her take her ventures to the next level. She felt she had what it took to grow her business, but she just needed to be around the right people to stay focused.
Real Estate Investment
“Money invested in the right real estate because it’s given me the freedom to make choices based on what I want to do, not just what I need to do,” Wallace further elaborated when sharing tips on her best investments.
She realized that she could purchase real estate in the Midwest that would allow her to build passive income while she focused on her other business ventures. By funneling her business profits into real estate projects, she accelerated the process of building wealth.
Simple Index Funds
While social media can be filled with ridiculous success stories of people who took risks on meme coins and other investments, the truth is that many self-made millionaires rely on safe investments to grow their funds. Michelle Schroeder-Gardner from Making Sense of Cents shared how investing her business income in simple index funds has helped her grow her net worth while focusing her energy on her business ventures.
“One of the smartest investment decisions I’ve made over the years was choosing to invest in easy Vanguard funds (such as VTSAX). The simplicity of Vanguard funds aligns perfectly with my financial philosophy of setting it and forgetting it (instead of spending a lot of time analyzing stocks). These funds have given me easy diversification, and they also have low fees.”
Even though we tend to glorify risky and bold investments, there’s something to be said for simple investments that allow you to focus your energy on building wealth with your business. “This allows me to spend more time growing my business while my portfolio grows in the background.”
Investments Worth Making
If you’re wondering how to invest your money to get to the next level of wealth, here are a few options worth considering based on advice from self-made millionaires.
Making Connections
Many self-made millionaires will point to their professional networks when discussing what has helped them get to where they are. Wallace shared that she spent $5,000 on a mastermind to learn more about growing a business as she grew her YouTube channel. Rose spent $8,000 per year as part of his growth. These are significant investments that were made to get to the next level.
Making connections will be different for everyone, but attending conferences, joining a professional network, and emulating those who are where you want to be will always be a valuable investment.
Education
You could feel stuck at your current level because you haven’t yet acquired the knowledge to upgrade your income. So what kind of education can you invest in? Here are a few options:
- Reading a book on a new topic
- Taking a weekend course to learn something new
- Joining a mastermind in an industry you’re new to
- Earning a certification to add to your expertise
- Upgrading your current skills so you can finally start that business
Investments You Understand
While it’s tempting to risk all of your money on crypto or some speculative asset because you saw a viral social media post, it’s important to remember that boring works. Sometimes, you’re better off investing your money in simple index funds while focusing on growing your business.
Closing Thoughts
Becoming a self-made millionaire isn’t out of the realm of possibility. The good news is that the blueprint is out there, and you could learn from others who came ahead of you.
If you start channeling your energy on building wealth and making the right connections, you can put yourself in a position to one day become a self-made millionaire.
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