We all dream about what we’d do if we hit the jackpot — mimosas on a private island is the dream.
But the truth is, most of us won’t win the lottery (and we probably shouldn’t count on it for our retirement plan). The good news? You don’t need a lucky ticket to build serious, life-changing wealth.
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In fact, there are smarter, more sustainable ways to grow your money that don’t involve scratch-offs or Powerball numbers.
“Have your appreciating assets, automate your contributions, and don’t let taxes and fees eat compounding,” said Dennis Shirshikov, professor of finance at City University of New York. “If you can steadily steer 20% to 30% of your earnings into productive assets, time does most of the heavy lifting.”
Here are some real-world strategies to help you create lottery-level wealth–no magic numbers required.
Tax Shelters Speed Up the Timetable
“View the IRS as a grumpy silent partner, reduce its stake,” said Shirshikov.
He recommended maxing out the big four: 401(k)/403(b), Roth IRA, or, if you are a high earner, just say backdoor Roth, health savings account (HSA) triple tax-advantaged.
And for high earners, a mega backdoor Roth or solo 401(k) if you have side income.
“Every dollar that you don’t have to compound pre-tax or tax-free reduces the distance.”
How Real Estate Comes In
According to Shirshikov, real estate is the only asset class most people can leverage that much on sane terms. In other words, you can borrow a lot of money to buy a valuable asset — and if you play it right, someone else (your tenants) helps pay down that loan.
Business Insider stated in an article that house hacking is the most inexpensive way to buy real estate.
The trick? Focus on cash flow and durability. That means buying properties where the rental income covers your mortgage, taxes, insurance, and reserves at today’s interest rates — not based on some dreamy refinance scenario down the road.
If the numbers don’t work now, keep looking.
“House hacking, renting rooms or a duplex unit, is the stealth wealth entry-level kit,” Shirshikov said. It’s one of the most accessible ways to dip your toes into real estate investing. Live in one part of the property, rent out the rest, and let your tenants help fund your path to wealth. It’s not just a roof over your head — it’s a long-term strategy for financial freedom.
Think of Owning or Buying Into a Business as a Non-Founder
“Absolutely, think small, profitable, and boring,” said Shirshikov. “Purchasing a $300,000 in [revenue] business at two to three times earnings, where you can get SBA financing, will beat a decade of index funds if you can run it lean.”
He added that nontraditional paths include search funds, micro private equity and “acquire-then-automate” playbooks.
In other words, skip the flashy tech startups and look for local service businesses with solid cash flow — think laundromats, storage units, cleaning services or small e-commerce stores. These types of businesses may not sound glamorous, but they can generate consistent income and build real wealth over time.
These strategies are gaining popularity among savvy professionals who want to skip the grind of building from scratch and instead focus on optimizing operations, increasing margins and using technology to scale. You don’t have to be the founder — you just have to be smart about finding undervalued assets and turning them into cash machines.
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This article originally appeared on GOBankingRates.com: 3 Ways To Build Lottery-Level Wealth Without Winning the Lottery
