Shortcuts to wealth are not a modern invention.
Take for example the Ponzi scheme, which has been around for more than a century. Many people are skeptical of traditional approaches to wealth, such as finding a high-paying job, running a small business or investing in index funds.
They often find these methods too slow and do not provide financial freedom until much later in life, such as in their 60s. I understand where they are coming from.
The desire to have everything right now is a common feeling. With that in mind, here are some proven, legitimate get-rich-quick schemes that have actually worked.
1. Investing in land
I know quite a few people who have invested in land more than once, often with inside information about upcoming infrastructure projects such as highways, railways or airports. This type of knowledge usually comes from connections within the real estate sector or local government.
It allows them to predict how these developments will increase the value of the land. Their approach goes beyond mere luck; it’s about being well informed and strategic.
They spend time understanding local development plans and zoning regulations, and their network of contacts becomes invaluable in identifying these potential land investment opportunities.
2. Investing in IPOs
Investing in IPOs, such as Amazon’s in 1997, shows the potential for significant returns. If you invested $1,000 in Amazon, you would have more than $50,000 in 2020.
Today, that investment would be worth about $1,946,689.06, given the June 1998 (2:1), January 1999 (3:1), September 1999 (2:1), and June 2022 (20:1) stock splits. which became 18.55. shares in 13,334.4.
With Amazon shares worth $145.99 on November 20, 2023, that initial investment has multiplied many times over. While this may seem like an easy way to get rich quick, it is not. If it were, everyone would be doing it.
3. Working in a startup before the IPO
In the early days of Facebook, until late 2005, some entry-level employees in basic office or on-site positions received between 1,000 and 5,000 shares. Thanks to several stock splits over the years, these shares rose to 80,000-400,000 by the time of Facebook’s IPO.
At Facebook’s $38 IPO in 2012, those shares were valued between $3,040,000 and $15,200,000 before taxes, assuming employees held onto their shares until the IPO.
This scenario led to the creation of 600 millionaires in Facebook’s IPO. The New York Times even reported that there were “thousands of millionaires” thanks to the company’s stock.
4. The lottery
Okay, this is an obvious one. The lottery is probably the best-known get-rich-quick scheme.
While it is a legitimate operation often carried out by governments, I would call it a poverty tax rather than a real path to wealth. The odds of winning big are incredibly low, meaning you’re more likely to be struck by lightning than to hit the jackpot.
5. Marriage
Although the lottery is the best-known get-rich-quick scheme, marriage is probably the most popular. How easy it is to get rich this way, I haven’t tried it, so I can’t say.
6. Early adopter
In recent years, we have witnessed the rise of Bitcoin millionaires. The reality is that while some made money from this, most did not. To me, it seems like cryptocurrency, NFTs, and similar trends are working toward a “greater fool” theory.
Those who were the first investors made significant profits, with each successive wave of investors generally seeing smaller returns. The second wave of investors earned less, the third even less, and so on.
7. Event management
You may find this surprising, but it comes from personal experience. About 20 years ago I was involved in event management as a side job. We decided to organize a New Year’s event. Our initial investment was just $1,000 for a venue deposit, and we paid the rest through ticket sales.
By January 1, after all expenses, we had made $42,000. It took three months of intense work on our part, and while the financial reward was significant, the stress level was something else. The responsibility of managing a large crowd, something you don’t have complete control over, was almost overwhelming.
8. Having the right product in stock at the right time
Chances are you know someone who, like me, had a stockpile of masks when COVID-19 hit. I’m not suggesting they had prior knowledge; it was more of a stroke of luck.
On the other hand, I also knew people who anticipated the demand spike during events like the solar eclipse. But they overestimated the market and ended up with thousands of unsold glasses in Amazon’s warehouse.
Sometimes being in the right place at the right time with the right product can lead to a windfall, but it can also go the other way if market demand is not as high as expected.
Do not miss it: 11 jobs that pay more than €200,000 per year without a diploma
Checking out: How to invest $100,000 to make $1 million