No adult would say no to the prospect of adding a bunch of zeros next to his or her net worth. If you’d like to be a millionaire or a billionaire, you don’t necessarily have to be born into an ultra-rich family. In fact, most of the success stories of today’s billionaires are literally rags-to-riches. If you would like to become a billionaire and more importantly, stay that way, what are you supposed to do? That’s what we will try to learn about here.
The Top 10 Billionaires in the World for 2015
According to Statista.com, the top ten billionaires in the world for 2015 are as follows:
- Bill Gates = $79.2 billion
- Carlos Slim Helu = $77.1 billion
- Warren Buffett = $72.7 billion
- Amancio Ortega = $64.5 billion
- Larry Ellison = $54.3 billion
- Charles Koch = $42.9 billion
- David Koch = $42.9 billion
- Christy Walton = $41.7 billion
- Jim Walton = $460.6 billion
- Liliane Bettencourt = $40.1 billion
We all could learn a thing or two from the success stories of the richest people in the world, and take inspiration from what they have accomplished. But if you’re starting from scratch, is there really a way for you to earn your first million, and work your way from there towards becoming a billionaire? Definitely!
What are the 10 Smartest Ways to Become a Billionaire – and Stay that Way?
So what are the smartest ways for you to become a billionaire – and stay that way? Take a look at our top ten list:
1. Start paving the path towards becoming a billionaire.
According to Inc.com, there are two paths towards becoming a billionaire. As you may already know, entrepreneurs answer a need or fulfil the wants of the general consuming public through the products or services that they offer.
In order for you to become a billionaire, you can take the first route which is to fulfil a want or answer a need which billions of people will be willing to pay a small amount for.
Or, you can take the second route which is to fulfil a want or answer a need of a smaller percentage of the population. Only this time, your target audience will be willing to pay a huge amount for it, so you can still achieve your goal of becoming a billionaire. To start paving the path towards adding multiple zeros at the end of your net worth, take your pick from these two routes and get inspiration from them.
2. Learn how to budget.
Next, learn how to budget. Even those who are already millionaires or billionaires are still living within a budget – and if you’re an average earner, you can never boost your net worth if you do not know how to budget. If you’re part of a married couple, get your spouse to do the budgeting if you are hopeless at it.
You can even download an app or hire the services of an accountant who will do the budgeting for you. This leads us to the next step which is that if you want to become a billionaire, always spend less than what you actually earn.
3. Spend less than what you earn.
If you are living way beyond your means, you can never earn your first million – no matter how many businesses or investments you start. If you keep on spending money the minute that you start earning it, how can you make your funds grow? If you keep on relying on your credit card to support a lifestyle that you cannot actually afford, how can you start growing your money?
When creating your monthly, bi-weekly or weekly budget, make sure that your expenses are less than the total income coming into the household. If it seems as if you are spending too much, find ways to cut back. Or, look for an additional income so that you can adjust your budget accordingly and spend less than what you are actually earning.
4. Save to invest.
One of the biggest misconceptions that people have is that they should save money just for the sake of saving.
If you have $20,000 in a savings account which is earning less than 1% in interest annually, you are not maximizing the earning potential of the funds that you already have. Once you have saved enough money, put the funds into secured account which earn more interest than a regular savings account – and it should not be easily accessed.
It could be a time deposit account or something similar. Make sure not to touch the funds on your safe investments so that you can make the most out of your money’s earning potential.
5. Make regular investments.
Make compound interest work to your advantage. Some of the options that you have are 401k or Roth IRA accounts, especially if you would like to have plenty of funds to retire on. No matter what kind of business venture it is that you are in, you should always spread your wings by making regular investments out of the money that you earned from it.
If you’re an independent worker, you can still make such investments and boost the earning potential of the funds that you saved up.
6. Once an investment earns, monitor its performance and repeat the process all over again.
If you already jump started the process of saving, investing and earning money, all you have to do is repeat the process all over again.
Let’s say that you decided to invest a portion of your savings account in stocks or bonds. The money that you earned from your first investment can be used for a second investment, and so on. Or, you can simply reduce your fixed monthly expenses so that you can increase your savings. Once you manage this feat, you can put the money towards an investment account, monitor its performance and wait for it to earn.
7. Don’t be afraid of making mistakes.
Even millionaires like Donald Trump have investments which are considered a bust. But do you see them making a big deal out of it? Not necessarily. The rich and famous who know how to manage their money are aware that mistakes will be made along the way.
It’s even more common to commit a mistake if you are just starting out. What you need to do is learn from these mistakes and use the lessons so that you will not make the same error next time. Once you commit a major blunder, accept your losses and move on.
8. Get rid of debts that will not make you any money.
Next, make it a point not to acquire debts that will not make you money. If you will buy a fancy car just because it fits your image as the CEO of your start-up company, is it worth purchasing at all? Of course, image will play a big role in your success but you can acquire all the fancy stuff later on, after you have managed to earn your first million.
While you’re still starting up, get rid of any debts that will not make you money and focus on growing the funds that you already have.
9. Get a mentor.
Take your pick from the top ten billionaires in the world. Which among them would you like to choose as a role model? Learn about the success story of Carlos Slim Helu, for example, and find out how he earned his first million. What are his business interests and how did he actually become a millionaire? Even a simple quotation from such individuals will inspire you to become a billionaire someday – and stay that way.
10. Make your money work for you.
More importantly, make sure that you are making your money work for you and not the other way around. If you’re dabbling in real estate, will a property make you earn a good profit over the next three to five years? If yes, it is surely worth investing in. Instead of slaving away in the office just so that you can earn a small amount of profit, make your money work for you so that you can enjoy everything that life has to offer.
It will also help if you will think big in terms of goals. Instead of aspiring to earn $1million, go for the jugular and strive to earn $1 billion. Once you have managed to earn your first million, you can work towards growing your funds to a billion or more by striving to maintain your wealth.
Diversify your portfolio and investments; make smart financial decisions; know when to get out; and delegate if you need to – especially if you’re running and growing your own business. You can also work smarter and harder than your direct competitors to make your own business stand out.
Paving the path towards earning your first million might prove to be a huge challenge but once you have managed it, working your way towards becoming a billionaire will be a lot easier – and well worth the wait.
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