Approximately 22 million Americans (about 1 in 15) have a net worth exceeding $1 million. accordingly UBS Global Wealth Report 2024.

For those looking to get into this club quickly, multimillionaire and “Shark Tank” alum Kevin O’Leary has some advice.

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“The fastest way to make a million dollars is to make your first $10,000,” he said. video He published it on his YouTube channel. “That’s actually how things work. But in reality, it’s just a matter of focusing on what people want and how they can solve their problems.”

In other words, his advice to anyone looking to make a quick fortune is to start a business. “Successful businesses solve people’s problems and (customers) want to pay because it saves them time and money… people don’t want to walk around barefoot, so they buy shoes.”

“Try to find a pain point that you know everyone is experiencing and then offer a product or service that solves it.”

That’s why working for yourself fastest The way to get into the seven-figure club, but not necessarily the best path.

fast way

O’Leary’s comments about making the first $10,000 and solving a “problem” allude to starting a business and making it profitable. Over time, a profitable business can grow in scale and bring wealth to its owner.

Indeed, headlines are often dominated by overnight success stories of innovative entrepreneurs.

Artificial intelligence search engine maker Perplexity AI launched in 2022 and is already valued at $3 billion as of June. accordingly CNBC. This created a huge windfall for the company’s founder, Aravind Srinivas.

But you don’t need a groundbreaking business idea to make a fortune. According to a to work According to JPMorgan Chase, 8.9% of small businesses successfully grow revenues to $1 million within the first five years of their existence.

Of course, this isn’t the experience of most small business owners; but this statistic suggests there is some truth to O’Leary’s belief that this is a fast track to millionaire status. However, it does not show how likely – even risky – this way.

An estimated one in four new businesses fail in their first year of operation, according to LendingTree data analysis From the US Bureau of Labor Statistics (BLS). Additionally, 48% of businesses fail within the first five years.

In other words: If you start a business today, you have an 8.9% chance of growing it to $1 million by 2029, but you have a 48% chance of failing in the same period.

The risk of failure is significantly higher. With this in mind, most people would be better off choosing a slower but less risky path to millionaire status.

Read more: 5 ways to increase your net worth now — Easily increase your money game without changing your daily life

slow track

If you find a well-paying job, save a meaningful amount of money each month, and invest wisely, you may have a better chance of saving $1 million. At least that’s according to Ramsey Solutions’ National Millionaires Survey.

according to questionnaire75% of millionaires said regular and consistent investing over a long period of time was the main reason behind their success.

The most common professions that resulted in millionaire status were teacher, accountant, lawyer, manager and engineer. Only 31% earned an average of $100.00 per year during their careers. Instead, most of their success came from investing wisely.

The average annual wage for a lawyer in America by 2023 was $145,760, according to the BLS data.

Saving just 15% of that and investing it in a low-cost index fund like Vanguard’s S&P 500 The fund — and using the 13.33% compound annual growth rate as an example — could help you save just over $1 million over 16 years.

Granted, 16 years is a long time, so this is definitely not a quick way to break into the seven-figure club. But your chances of achieving this goal are probably significantly higher than starting a small business, making it profitable, and growing it.

If you want to build wealth, both ways are completely valid. You can choose one of two paths, depending on your risk appetite, level of patience and business aptitude.

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This article provides information only and should not be construed as advice. It is provided without any warranty.