Tag: wealth management

Entrepreneurship is the quickest path to wealth, offering the potential to bypass the slow grind of traditional saving and investing. I am a CPA, Certified Financial Planner and author of Rich Habits: The Routines Millionaires Use Daily That Will Help You Build Wealth.

Over a five-year period, I studied the daily habits of 233 wealthy individuals, of which 177 were self-made millionaires, and 128 people living in poverty. My Rich Habits research, along with insights from other independent third-party experts/studies corroborating my research, reveals that entrepreneurship accelerates wealth-building when paired with specific habits.

This article explores why entrepreneurship is the fast track to wealth and how my findings can guide aspiring entrepreneurs to success.

Related: 10 Habits That Separate Rich and Successful Founders From Wannabe Entrepreneurs

The entrepreneurial advantage

My research shows that self-made millionaires who pursued entrepreneurship built wealth faster than those who relied on saving and investing as employees. In my five-year Rich Habits Study, “Saver-Investors” took an average of 32 years to accumulate $3.3 million, while entrepreneurs reached $7.4 million in just 12 years. This gap highlights entrepreneurship’s potential to compress the wealth-building timeline.

Entrepreneurs can create multiple income streams, scale businesses and directly influence financial outcomes, unlike employees tied to fixed salaries. However, I must emphasize that success depends on adopting certain ‘Rich Habits’ — daily routines that set successful entrepreneurs apart.

Below are the key habits from my research, tailored for aspiring entrepreneurs.

1. Set clear, actionable goals

In my Rich Habits study, 80% of self-made millionaires set specific, long-term goals and focused on them daily. For entrepreneurs, this means defining a clear vision — whether launching a product or hitting revenue targets — and breaking it into daily tasks.

I found that successful entrepreneurs have a do it now mindset/daily mantra that encourages immediate action to maintain momentum.

Actionable Tip: Write one major business goal for the next year and break it into monthly and daily tasks. Review progress daily to stay on track.

Related: The Path to Becoming a Wealthy Entrepreneur Starts With Identifying Scarcity and Saying ‘No’ More Often

2. Commit to continuous learning

Successful entrepreneurs are lifelong learners. My Rich Habits study shows that 88% of millionaires dedicate at least 30 minutes daily to self-education, reading books on personal development or industry trends. In contrast, 77% of poor individuals in my study spent over an hour a day either watching TV, streaming, reading books of fiction, social media engagement and other online time-wasters. Knowledge keeps entrepreneurs competitive.

Actionable Tip: Replace 30 minutes of social media with reading a business book or listening to an industry podcast. or reading industry journals

3. Live frugally to re-invest

Financial discipline is critical. Saver-Investor millionaires build their wealth by being frugal with their spending in order to save 20% or more of their net income, which they prudently invest themselves or through financial advisors. Entrepreneurs are different.

While they do share the frugality habit with Saver-Investors, they don’t save like Saver-Investors. Instead, they live frugally in order to maximize the amount of profits, which they then reinvest back into their businesses — marketing, product development or hiring. In order to be able to live frugally, budget no more than 25% of net income on housing, 15% on food, 10% on entertainment and 5% on vacations.

Actionable Tip: Automate investing 20% of your company’s profits into a business savings account to help you fund growth or provide a buffer.

Related: Frugality Among the Wealthy: A Closer Look

4. Build power relationships

Networking is a cornerstone of success. In my study, I found that 93% of millionaires with mentors credited them, almost entirely, for their success in life. Mentors offer guidance, share processes that work, teach habits that automate success, teach what works and what does not work and open doors to influencers who are part of their inner circle.

Wealthy entrepreneurs also invest significant time in cultivating “Power Relationships” with optimistic, success-minded peers and mentor others to strengthen their networks.

Actionable Tip: Seek a mentor in your industry and ask for specific advice. Mentor someone else to build your network and refine your strategies.

5. Take calculated risks

Entrepreneurship involves risk, but successful entrepreneurs do their homework and make informed decisions prior to taking any risk. In my study, 27% of millionaires failed at least once in business but learned from their setbacks. They avoid reckless, speculative moves, relying on research, mentorship and market analysis to seize opportunities others miss.

Actionable Tip: Before launching a venture, conduct market research and test ideas with a small-scale pilot program in order to minimize risk.

6. Prioritize positivity and health

A positive mindset and good physical health sustain entrepreneurial stamina and energy levels. My Rich Habits millionaires practiced “rich thinking,” controlling negative emotions and staying optimistic. Additionally, 76% exercised regularly to maintain energy and focus, enhancing decision-making and resilience.

Actionable Tip: Spend 30 minutes daily on exercise like walking, yoga, weights or resistance exercises and practice gratitude to maintain positivity.

Related: How to Build a Healthy, Wealthy and Wise Life

The power of passion and persistence

I learned from my Rich Habits research that passion fuels entrepreneurial success. Passion makes work fun. Passion gives you the energy, persistence and focus needed to overcome failures, mistakes and rejection.

Passionate entrepreneurs endure long hours and challenges, while disciplined habits create a compounding effect. However, even the entrepreneurial fast track requires time — 12 years on average to reach multimillion-dollar wealth.

Addressing challenges

Critics of my work argue that systemic factors or demographic biases may influence wealth beyond habits. While barriers exist, my blind study focused on controllable behaviors. Entrepreneurs can’t eliminate external challenges, but can control daily actions, relationships and decisions to navigate them effectively.

Entrepreneurship offers the fastest path to wealth for those who adopt the Rich Habits my research highlights. By setting goals, prioritizing learning, living frugally, building networks, taking calculated risks and maintaining positivity and health, aspiring entrepreneurs can emulate self-made millionaires. Wealth-building is a two-step process — creating and sustaining it — and entrepreneurship, with disciplined habits, is the engine that drives both steps faster than any other path.

Start small, stay consistent and entrepreneurship will eventually lead you to financial success.