Is this how a guy becomes very wealthy?

[Anonymous]

So let’s say the father passes down 10 million to his kids. His son grows it to 100 million+ Carrying on the legacy and business

Through succession

Yes it is

No it’s not

[MrOracle]

Sometimes, but in the US, most multimillionaires built their own fortunes through business - inheritance was only about 10%.

One of the keys is to understand the difference between an asset (which is not something you HAVE, but something that generates profits) and a liability (something that depreciates and/or costs money to maintain and operate). Most people make money and spend it on liabilities - cars and boats and such, and believe that these things are assets, but they cost money instead of making money. RICH people buy very few liabilities UNTIL they have enough profitable assets to pay for them even if they aren't working. Until then, they drive cheap cars and spend little on themselves, because they would rather buy real assets.

You also need a good, knowledgeable accountant, because there are lots of techniques and loopholes that allow a person with means to make more money. For example, you might have $100M and could easily buy a big home outright, but you can actually make more money in the long run by getting a low interest mortgage (a loan you have to pay back with interest) and invest your cash in higher return investments, plus you will get tax breaks for doing so. These things aren't necessarily obvious, but knowing them can save or make you millions.

[WindAtMyBack]

That's one way. But by far the most common way is to work, save and invest. You don't need a high end job to become a multi-millionaire. All you need is a decent job that the majority of people can get. Then you need to save, with a strong preference of starting at a young age. And you need to invest it - not gamble, but actually put it into good solid safe investments. Even a super investment like CDs will work.

The important thing is to have some self discipline now, so you can let it build over the years. It's a proven formula that has worked for millions and millions of people.

As far as carrying on a business, a lot of kids inherit businesses and ruin the business because they either don't know how to run it, or because they don't want to do what it takes to run a business.

[AmeerX]

Sheer force of investment will pass down your legacy as a wealthy man. Don't buy luxury but keep a comfortable lifestyle

[Anonymous]

Yes, but you won't be able to enjoy your money, but your son can build up your family name like Trump and his ma and pa.

[Wise4myage]

Yes, of course.