How to Become a Billionaire

2.1kshares
Like Us on Facebook

One can never have enough money in this world. You are bound to find new ways
to spend all that cash. You would probably start out by upgrading the necessary
things in life to something more luxurious. A simple three-bedroom house in the
suburbs would become a mansion in the toniest neighborhood in the most expensive
part of the city. Maybe, the Crespi Hicks Estate in Dallas worth $135 million would fit
your needs.

The family car would become several high-end cars for each member of the
family, plus several luxury classic and sports cars to satisfy your modern Matchbox
collection. You could actually start a car collection to rival that of Ralph Lauren’s, Jay
Leno’s and Jerry Seinfeld’s.

You then add more things, like a flat in the Upper East Side of Manhattan, a private
beach island in the Caribbean, a ski lodge in Austria and Safari hunting grounds in
Africa. Maybe you could buy your own private yacht just like Roman Abramovich’s
Eclipse that cost an estimated $1.5 billion. A private jet to fly you off anywhere and
anytime you want should also be in the list.

And maybe, you could buy your own sports team so that you could hire the latest
players you fancy and fire the ones who just could not perform. That is what the likes
of Abramovich and Mark Cuban did.

But first things first…how exactly do you become a billionaire? Unless you get
lucky and win the lottery or get married to the likes of Tamara Ecclestone, Delphine
Arnault or Charlotte Casiraghi without their families demanding a pre-nuptial
agreement, then you better start to dig down and work yourself up. Chances for
becoming a billionaire are extremely slim, but you can never tell unless you try,
right? After all, Mark Zuckerberg and his original cohorts in Facebook got rich out of
a drunken night resulting from a failed date.

The First Steps

1. Keep calm and get smart. Never think that you could become a millionaire, much more a billionaire, in just a few nights. While there have been a lucky few
who achieved fortune that way, like the aforementioned Zuckerberg or Sean Parker
of Napster fame, the only ones who have awoken with billions at their immediate
disposal are members of royalty, oil sheiks and those whose parents did all the
hard work and are just waiting to inherit the money. So study up, learn about finance
and investments, master esoteric business topics like tax brackets, dividends, etc.
Get inspiration by reading how billionaires like Warren Buffett did it.

2. Live wisely and watch those pennies. We usually take for granted those small coins. Cliché as it may sound, but a penny saved is also a penny earned. Keep
those coins by collecting them in a jar. You might be surprised at the total amount
you collect at the end of the year.

Learn to live wisely as well. Cut out all those unnecessary expenses. Do you really
need an expensive coffee from those overcharging coffee shops when you could get
a cup for free at the office? Spend only on what is really necessary.

After deducting for all the necessary expenses, compute how much you need to
save for emergency and contingency situations. Analyze what you want to do with
the rest of your money. Should you just keep it in the bank with the rest of your
money? Or should you try investing in some business or stock? Remember, while
saving in a bank has little risk for your money, it also means earning only a small
reward. The higher the risk, the higher the reward you would earn if it succeeds. On
the other hand, if an investment proves too good to be true, like if it offers too high a
yield compared to market rates, then chances are it’s a scam.

3. Make a financial plan. Compute how much you can save for the next couple of years. Decide where best to invest your money. This will allow you to keep your eye
on the prize of becoming a billionaire.

Ways to Your Billions

1. Invent. If you are smart enough, then try to invent something that is practical and really needed. You need not invent something earth shaking. It could be something
so simple that people would wonder why they never thought of it before. This is what
James Dyson achieved through his invention of the vacuum cleaner.

2. Innovate. Maybe you could take an already existing idea and improve on it exponentially. Furniture shops have been around for a long time, but it took IKEA to
make us realize how cool it could be. Gianfranco Zaccai also found a better way of
cleaning the floor by creating a better mop. Friendster and MySpace were already
around, but Zuckerberg still found a way to innovate and improve on them when he
created Facebook.

3. Invest. Buffett’s Berkshire Hathaway has an astounding variety of investments indifferent sectors and industries. If you have an uncanny way of spotting businesses
that can make it big, then this is a good way to earn your billions. After Napster
closed down, Parker never stopped looking at new trends in the Internet. Eventually,
he got involved in Facebook and Spotify by investing in these companies.

Pitfalls to Avoid

1. Mr. Know-It-All. Nobody can ever know everything in life. Always keep an open and curious mind because these are essential to the learning process. Once you
start thinking you know it all, then you stop learning and your ability to invent and
innovate would disappear.

2. Jumping without Analyzing. Never invest on something just because it seems to be the next big thing. Learn how to analyze which business models are good
and worthy of your money. Buffett and George Soros still analyze the market
environment up to now, which was why they dumped their real estate stocks at the
beginning of the year in anticipation of an increase in interest rates and dampening
of the sector.

3. Giving Up Easily. Never give up too quickly. Gates sold an interpreter for a computer platform before he had even started developing a line of code. Cuban was
terrible in his first jobs but he persevered. Richard Branson has made several bad
investments. Yet, both are now loaded with cash.

On TheRichest.com

Leave A Comment