One can never have enough money in this world. You are bound to find new waysto spend all that cash. You would probably start out by upgrading the necessarythings in life to something more luxurious. A simple three-bedroom house in thesuburbs would become a mansion in the toniest neighborhood in the most expensivepart of the city. Maybe, the Crespi Hicks Estate in Dallas worth $135 million would fityour needs.
The family car would become several high-end cars for each member of thefamily, plus several luxury classic and sports cars to satisfy your modern Matchboxcollection. You could actually start a car collection to rival that of Ralph Lauren’s, JayLeno’s and Jerry Seinfeld’s.
You then add more things, like a flat in the Upper East Side of Manhattan, a privatebeach island in the Caribbean, a ski lodge in Austria and Safari hunting grounds inAfrica. Maybe you could buy your own private yacht just like Roman Abramovich’sEclipse that cost an estimated $1.5 billion. A private jet to fly you off anywhere andanytime you want should also be in the list.
And maybe, you could buy your own sports team so that you could hire the latestplayers you fancy and fire the ones who just could not perform. That is what the likesof Abramovich and Mark Cuban did.
But first things first…how exactly do you become a billionaire? Unless you getlucky and win the lottery or get married to the likes of Tamara Ecclestone, DelphineArnault or Charlotte Casiraghi without their families demanding a pre-nuptialagreement, then you better start to dig down and work yourself up. Chances forbecoming 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 ofa drunken night resulting from a failed date.
3 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 fewwho achieved fortune that way, like the aforementioned Zuckerberg or Sean Parkerof Napster fame, the only ones who have awoken with billions at their immediatedisposal are members of royalty, oil sheiks and those whose parents did all thehard work and are just waiting to inherit the money. So study up, learn about financeand 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. Keepthose coins by collecting them in a jar. You might be surprised at the total amountyou collect at the end of the year.
Learn to live wisely as well. Cut out all those unnecessary expenses. Do you reallyneed an expensive coffee from those overcharging coffee shops when you could geta 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 tosave for emergency and contingency situations. Analyze what you want to do withthe rest of your money. Should you just keep it in the bank with the rest of yourmoney? Or should you try investing in some business or stock? Remember, whilesaving in a bank has little risk for your money, it also means earning only a smallreward. The higher the risk, the higher the reward you would earn if it succeeds. Onthe other hand, if an investment proves too good to be true, like if it offers too high ayield 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 eyeon the prize of becoming a billionaire.
2 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 somethingso simple that people would wonder why they never thought of it before. This is whatJames 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 tomake us realize how cool it could be. Gianfranco Zaccai also found a better way ofcleaning the floor by creating a better mop. Friendster and MySpace were alreadyaround, but Zuckerberg still found a way to innovate and improve on them when hecreated 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 businessesthat can make it big, then this is a good way to earn your billions. After Napsterclosed down, Parker never stopped looking at new trends in the Internet. Eventually,he got involved in Facebook and Spotify by investing in these companies.
1 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 youstart thinking you know it all, then you stop learning and your ability to invent andinnovate 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 goodand worthy of your money. Buffett and George Soros still analyze the marketenvironment up to now, which was why they dumped their real estate stocks at thebeginning of the year in anticipation of an increase in interest rates and dampeningof 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 wasterrible in his first jobs but he persevered. Richard Branson has made several badinvestments. Yet, both are now loaded with cash.