How Do Millionaires Make Their Money [Top 20 Investing Habits]

Updated On: 08/21/2023 is reader-supported. When you buy via links on our site, we may earn an affiliate commission at no cost to you.

You've probably caught yourself daydreaming at least a few times about joining the ranks of the ultra-wealthy.

And who wouldn't want that? The private jets, luxurious homes, exciting travels, financial security - all it takes is one giant step up the economic ladder.

You're not alone if you're wondering how do millionaires make their money. Understanding this can be vital in altering the course of your journey toward wealth and prosperity.

It's not always a silver spoon or a lottery win that lands them into a seven-digit net worth. There's a vast diversity in their paths to accumulate their fortunes.

Is it investing wisely? Starting a successful business? Or perhaps they inherited their wealth? Your curiosity deserves some insightful answers, so let's delve into this topic and discover what it takes to join those moneyed elite circles.

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How Do Millionaires Make Their Money: Top 20 Investing Tips

Get to know the top twenty ways how millionaires make their money to guide you as you pave your path to financial freedom.

Entrepreneurship: Creating and Scaling Successful Businesses

Entrepreneurship: Creating and Scaling Successful Businesses

Who wouldn't want to be their boss while raking in the big bucks? This dream can become a reality through entrepreneurship.

It offers tremendous potential for significant wealth creation. Many millionaires and billionaires have followed this path, with Jeff Bezos, Elon Musk, and Mark Zuckerberg being some of the prominent examples.

  • Potentially high profits are a considerable draw.
  • It allows you to employ creativity and innovation.
  • It gives you control over your destiny.
  • Most importantly, there is no cap on how much money you can earn.

However, starting a business isn't all roses. There's the risk of failure, financial instability, long hours, stress, and uncertain profits in the early stages.

But if you're resilient, determined, and have a viable business model, becoming an entrepreneur could be your ticket into the millionaire’s club.

Investing: Smart Investments in Stocks, Real Estate, Startups, and More

The wealthy invest their money wisely. Investment strategies vary significantly among millionaires, but it fundamentally involves putting money into assets with potential substantial returns.

This can be stocked in publicly traded companies on exchanges like NYSE or NASDAQ or investing in real estate that could appreciate over time.

  • It allows money to grow passively - You're making your money work for you.
  • Diversification - Spreading investments across various assets helps mitigate risk.
  • Time compound effect - The earlier you start investing, the more time your money gets to grow.

Remember Warren Buffet's advice: "Don’t put all eggs in one basket," meaning diversify your investments across stocks, bonds, real estate, etc., spreading risk and creating opportunities for greater returns.

Innovations: Developing and Monetizing New Products or Technologies

Innovations: Developing and Monetizing New Products or Technologies

You've probably heard the adage: innovate or die. For many millionaires, innovations were their golden tickets to immense wealth.

This revolves around creating, refining, or going the extra mile to develop cutting-edge products or tech solutions and monetizing these ideas.

  • High potential earnings: If your product or solution meets market needs, the sky's the limit regarding earning potential.
  • Being a market pioneer: Innovators stand at the edge of discovery. They're often ahead of the curve in embracing breakthroughs in their chosen industries.
  • Filling a market gap: Unique innovations often address under-served needs, leading to substantial profits when they hit the market.

However, bringing your innovative ideas into reality requires creativity, hard work, research and development investment, and a high tolerance for risk.

Read More: How To Make $60 A Day In 2024 [15+ Effective Methods]

Real Estate: Buying, Selling, or Renting Properties for Profit

Real estate investing is among millionaires' favorite ways to grow their wealth. It typically involves buying undervalued properties and selling them at higher prices (flipping), renting them out for steady income (buy-and-hold), or developing them into more lucrative properties (development).

  • Cash flow: Rental properties can bring in consistent income.
  • Appreciation: Property values generally rise over time.
  • Financial security: Real estate is traditionally considered a stable investment.
  • Tax benefits: Certain tax deductions are available to property owners.

Remember that real estate investing requires capital upfront, and its success leans heavily on location and market timing.

Stock Market: Trading and Investing in Stocks and Securities

Stock Market: Trading and Investing in Stocks and Securities

The stock market provides a platform where buyers and sellers trade shares of publicly-listed companies.

Millionaires use it to grow their wealth by buying stocks low and selling high or earning dividends from long-term investments.

  • Income potential: Successful trades can yield significant returns.
  • Liquidity: Stocks can be quickly bought or sold.
  • Accessibility: Modern technology has made participating in stock markets easier.
  • Diversification: Opportunities abound in this avenue of investment.

While risks exist as markets fluctuate daily, diversifying your portfolio and research-driven decision-making can guide you toward lucrative investments.

Use financial advice carefully; while past performance does not guarantee future success investing wisely certainly improves chances of securing impressive returns on investment.

Don't be afraid to seek help from professional financial advisors who keep tabs on industry trends – their advice might make your journey toward millionaire status smoother and faster!

Entertainment Industry: Acting, Music, Writing or Sports

If you have ever dreamed of seeing your name in lights or hoisting a trophy high above your head, the entertainment industry may provide just the ticket to the wealth you seek.

The initiative encompasses various sectors, including acting, music, writing, and sports. Success in these mediums can be highly competitive but also immensely rewarding.

For those who thrive in the limelight and possess an innate talent or honed skill, investing time and effort into entertainment industry sectors could be worth taking.

  • A wealth of opportunities: There’s progression at many levels - starring in small local theater shows could lead to massive Hollywood productions.
  • The abundance of disciplines: No need to limit yourself; you can do acting, singing, producing - or all three!
  • High earning potential: Once established, earnings can skyrocket – think Hollywood A-listers and top athletes!
  • Understanding creativity value: Intellectual properties mean getting paid for your unique contributions.
  • Global reach: Thanks to globalization and technological advancements working on worldwide projects is possible.

However, remember that this path requires talent supported by training and relentless dedication even during repeated rejections. Grit will often lead you to success in this challenging yet fulfilling playing field.

Tech Startups: Building and Selling Tech Companies

Tech Startups: Building and Selling Tech Companies

Silicon Valley is not the only place where tech startups thrive. Around the world, tech-savvy innovators are building software solutions across various domains, from AI-based tools to eCommerce platforms.

  • Growing demand: As the world becomes more digitalized, opportunities increase exponentially.
  • High exit opportunity: Successful startups frequently attract potential buyers by offering lucrative deals.
  • Promising returns on investment (ROIs): Technology companies often yield significant returns over time.
  • Industry influence: Startups are crucial in driving technology innovations shaped by consumer demands.

However, successful tech ventures require ingenuity, a deep understanding of market trends, financial acumen, and business development skills.

And as with other entrepreneurial paths, a startup holds its fair share of risks, given the fast-moving nature technology industry.

Finance and Banking: High-Level Positions in Financial Institutions

If an affinity for numbers, analytical thinking, and problem-solving skills are up your alley, high-level finance banking positions might be your path to affluence.

Take Wall Street example financiers, bankers, hedge fund managers business moguls who make a fortune climbing the corporate ladder and reaching senior-level positions where they manage multi-million dollar accounts, oversee strategic finance operations, and bankroll big-ticket mergers and acquisitions.

Each carrying potential hefty bonuses, profit shares herein lies financial wheeling-dealing based on sharp analytics strategic risks thinking outside the box hugely affecting bottom line companies but adds up individual's wealth too!

  • High earning potential: With a rise in position comes an increase in income, including salary bonuses and performance incentives.
  • Industry prestige: Opportunities to rub shoulders with power players in world finance economics open doors to influence respect prestige.
  • Financial literacy advantages: Navigating the finance industry equips you with savvy money management skills that serve life beyond the professional sector!

This journey typically begins with a solid education in finance and economics, followed by years of diligent work climbing the corporate ladder.

At the same time, investing self through continuous learning and networking hands-on experience cannot be underscored enough.

Achieving significant success here takes patience, hard work, discipline determination, all of which are traits shared by successful millionaires–knowing how to make money but, more importantly, learning how to keep growing that money!

Inheritance: Receiving Substantial Wealth from Family

Inheritance: Receiving Substantial Wealth from Family

In some cases, millionaires don't need to work a day in their lives to join the high net-worth club.

Some are fortunate enough to inherit substantial wealth from their family or loved ones. But it's not just about receiving an inheritance - how you handle that sudden inflow of riches sets the stage for sustainable future wealth.

  • Financial Security: A large inheritance can provide a financial safety net.
  • Grow Your Wealth: Invested wisely, an inheritance can compound into a larger fortune over time.
  • Diversification Opportunities: An adequate sum allows you to invest in diverse assets and create a balanced portfolio.
  • Endless Possibilities: The freedom to pursue dreams or passions without worrying about income can be life-transforming.

However, remember that handling inherited wealth should not be taken lightly. Consider hiring financial advisors for assistance in managing inheritance in a manner that provides lasting returns.

Intellectual Property: Earnings from Patents, Copyrights, and Royalties

Another unique way of earning money is leveraging intellectual properties. Many millionaires capitalize on creating and commercializing original work, resulting in patents, copyrights, and royalties.

Successful inventors, authors, musicians, and businesses earn consistent revenue streams through this method. Some benefits include:

  • Residual Income: Licensing your IP guarantees consistent income whenever someone uses your work.
  • Establish Industry Authority: Having patented inventions or creative works improves credibility.
  • Protect Your Ideas: Registering for IP rights ensures no one else can claim ownership of your creations.

Remember that while exciting and potentially lucrative, earnings via Intellectual Property come with issues such as protection enforcement costs and risk of infringement.

Professional Services: Medical, Legal, Consultancy Services

Professional Services: Medical, Legal, Consultancy Services

Millionaires are often found in occupations that offer professional services like medicine, law, or consultancy, commanding high fees due to their specialized knowledge, years of training, skills, experience, credentials, etc.

  • High Earning Potential: These professions often come with an above-average salary.
  • Job Safety: A relatively stable career path promising a steady income stream.
  • Authority: These respected professions provide an influential platform as industry experts, which can be verified outside the professional sphere through writing, public speaking coaching, etc.

However, let’s not forget entering these professions requires substantial investment in education and time to achieve the necessary qualifications and build a successful practice.

Hence, it’s a long journey that demands dedication and perseverance, but rewards can be substantial in the end, making it worthwhile.

As you ponder this pathway, remember achieving millionaire status does not have overnight. It takes persistent action, patience, strategic planning, discipline investment proper channels.

Read More: How To Make 20K A Month In 2024 [20 Side Hustle Ideas]

Art and Collectibles: Buying and Selling Valuable Artworks

Looking to diversify your investment portfolio in a more creative, personalized direction? Placing your bets on art and collectibles might be the strategic move you're seeking.

Investing in artwork, rare collections, vintage cars, or antique furniture delivers aesthetic pleasure and potentially profitable returns.

Offering a unique blend of sophistication and financial growth, art and collectible investment has a series of advantages:

  • Hedging against market volatility: Art investments often yield stable returns unaffected by stock market fluctuations.
  • Pride of ownership: Beyond monetary value, art gives investors personal satisfaction and social prestige.
  • High potential returns: A masterpiece can skyrocket in price over the years.
  • Tax advantages: Depending on your jurisdiction, you may accrue tax benefits from owning artwork.

Investing in art requires a keen eye for detail, understanding of trends in the art scene, patience since returns can materialize, and ready counsel from seasoned art professionals or advisors.

Online Ventures: E-Commerce, Affiliate Marketing, Content Creation

Online Ventures: E-Commerce, Affiliate Marketing, Content Creation

The digital world offers opportunities for millionaires in the making unlike anything before. E-commerce ventures enable buying and selling goods with global access.

Affiliate marketing generates income by promoting others' products or services. Content creation monetizes through advertising revenue and direct payments depending on audience size/'likes' clicked.

Investing your time -and sometimes initial capital- into online ventures brings significant benefits:

  • Minimum entry barriers: Starting an online business requires less capital than traditional brick-and-mortar establishments.
  • Unparalleled scalability: Successful online businesses can grow exponentially within short timeframes.
  • Flexible work arrangements: You have control over when and where you work.
  • Global market reach: The internet allows business interactions beyond geographical limitations.

Though promising, every start-up faces challenges; do thorough research before walking this path. Identify reliable partnerships for eCommerce or affiliate marketing; create valuable, engaging content attentive to legal guidelines around copyright use advertising SEO tags, etc.

Venture Capital: Funding Promising Startups for Equity

Venture Capital is another route many millionaires follow. They invest funds into promising startups; in exchange, these venture capitalists acquire equity stakes providing potential high-yield exits when these small companies grow or go public.

Incorporating venture capital into your wealth-building strategies comes with significant benefits:

  • High return potential—The payoff can be enormous if the startup succeeds spectacularly.
  • Ownership stake—You get a say in company operations owing to your vested interest.
  • Intangible rewards—There's fulfillment involved in helping new companies launch or expand while sharing their financial journey,

However, venture capitalism isn't free from risk. If startups fail to thrive, investors may suffer losses, whereas success promises substantial monetary rewards.

Experience is valuable here, as is having resources to hedge against potential losses – consult with expert advisors who've tread this road before making such commitments.

Angel Investing: Providing Early-Stage Funding to Startups

Angel Investing: Providing Early-Stage Funding to Startups

If you're sitting on a nice pile of savings and have the itch to bypass traditional investment channels, angel investing might be right down your alley.

This is where you provide financial backing for early-stage startups in exchange for equity stakes. Think Shark Tank but in the real world!

  • Lucrative Potential Returns: If your investments perform well, the returns can be exponential compared to conventional investment assets.
  • Influence Over Business Direction: As an investor, you often get a say in business matters, which could amplify your returns.
  • Diversified Portfolio: Diversification is essential, and startups bring a new flavor to your mix.
  • Supporting Innovation and Job Creation: By funding startups, you promote novel ideas and contribute to job growth.

Remember that should you opt to follow this path of providing funding for startups, there are risks involved.

Ensure that every startup venture you back up aligns with your risk tolerance level, sector preference, and geographical location.

Franchising: Expanding Established Businesses

Entering the world of franchising can serve as a pathway to wealth accumulation. It involves buying into a franchise model - leveraging an already established brand name while reaping profits from sales generated.

  • Proven Business Model: Franchisors have a tried-and-tested playbook for running their brand.
  • Brand Recognition: Being part of a well-known brand can attract customers without much effort.
  • On-going Support from the Franchise HQ: Training, recruitment guidance, marketing assistance—the franchisors extend multiple support avenues.

Franchising isn't without its challenges. Location is key! Be sure to scout adequately before establishing your unit.

Consulting: Offering Expertise in Various Fields

Consulting: Offering Expertise in Various Fields

Looking for wealth creation opportunities outside traditional job confines? Consulting could be right up your alley.

If you're an expert in any field—be it IT solutions or knowing how best one could manage their finances—you can offer bespoke services.

  • High earning potential: Businesses are willing to pay top dollar for skilled advice.
  • Independence: Offering consulting gives professionals freedom from traditional employment setups.
  • Exposure: Consulting jobs expose professionals to diverse industries and people, enhancing their skill sets.

Remember that building reputation takes time! Your earning potential accelerates as more satisfied clients spread the word about the excellent service offerings.

When embarking on investment ventures like angel investing, exploring franchising, or becoming an independent consultant, doing due diligence before making commitments is imperative.

Always weigh the pros against potential risks - let not blind optimism guide decisions as getting millionaire status may not be easy, but it's surely achievable with a careful approach.

Oil and Gas: Exploration, Production, and Distribution

The world economy hinges heavily on the oil and gas industry. It is a multi-trillion-dollar industry that explores hydrocarbon reserves, extracts these resources, and then distributes them to consumers. Becoming one of the industry's stakeholders might be your ticket to a fabulous fortune.

  • High profitability: The oil and gas sector has high-profit margins.
  • Stable demand: Global energy demand doesn't wane regardless of market price fluctuations.
  • Portfolio diversification: Investing in this sector can help diversify your financial portfolio.

However, seeking expertise or professional advice before diving into this venture is advisable due to geopolitical dynamics and environmental policies affecting this industry.

Fashion Industry: Clothing Lines, Modeling, Design

Fashion Industry: Clothing Lines, Modeling, Design

Runways, designer labels, lavish fashion weeks- these are more than just gloss. They represent an industry that's proven its worth in minting millionaires.

The fashion world offers opportunities at every turn- creating clothing lines under your label, scouting modeling talent, or contributing designs to the repertoire.

  • Profit potential: With appealing products and marketing strategies, profits can skyrocket.
  • Diversification: From affordable retail to high-end luxury boutiques - opportunities are vast.
  • Creativity welcomed: There’s room to make your mark with unique designs or concepts.

The industry must stay current on consumer trends while balancing creativity and commercial viability.

Be prepared for competition; garnering attention in a crowded space might take time but could bring extravagant rewards.

Gaming and Esports: Professional Gaming And Related Industries

Interest turned profession is what fuels success stories in gaming industries today. Investing in eSports grants you entry into one of the fastest-growing sectors worldwide.

Whether you choose ownership stakes within existing eSports franchises or invest directly into gaming tech developments - it's time your love for games pays off!

Reasons why investment in Gaming industries brings good returns, are:

  • Growth Potential: According to a report, the eSports market is projected to grow at a compounded annual rate of over 18% between 2021–2027.
  • Massive Audience Base: Driven by Millennial and Gen-Z consumers passionate about gaming.
  • Innovation-fueled: Constant innovation implies there’s always something new grabbing consumer attention.

However, successful investing here requires a thorough knowledge of what's trending and an understanding of what gamers are interested in experiencing next.

FAQs About How Do Millionaires Make Their Money

What is the primary source of wealth for most millionaires?

Most millionaires garner their wealth through entrepreneurship and intelligent investments in assets like stocks and real estate.

Does innovation contribute to becoming a millionaire?

Many individuals have become millionaires by creating and monetizing innovative products or technology.

Can the stock market help me become a millionaire?

Yes, savvy investments in stocks and securities can accumulate wealth over time.

Is investing in the oil and gas industry profitable?

The oil and gas sector is an attractive investment prospect due to its high-profit margins and stable demand.

Does the fashion industry provide opportunities for becoming a millionaire?

This industry has numerous avenues with potential high profits, ranging from retail outlets to high-end luxury boutiques.


The journey to becoming a millionaire is no small feat. It requires resilience, strategic decision-making, creativity, consistent efforts, and - just as crucially - a sound understanding of the numerous paths leading toward achieving that dream.

While it's fascinating to learn how millionaires make their money, remember what fits one might not suit another, as all paths harbor unique challenges and rewards.

But here's the silver-lining punch: You're not restricted to following just one path. As you've learned from the various strategies mentioned earlier, diversifying your investments or business interests can help spread risk and potentially pave multiple streams of income leading right into the Millionaire Land.

Experiment with entrepreneurship, put your stakes in promising industries like oil and gas or eSports, spot innovation opportunities, or become a trendsetter in the fashion industry - mix strategies wisely based on your passions, capabilities, and market feasibilities. It's your journey to the script.

Michael Restiano

I support product content strategy for Salt Money. Additionally, I’m helping develop content strategy and processes to deliver quality work for our readers.

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