A guide on how to become a billionaire with tips and strategies from the world’s richest people. Learn how to have a vision, take risks, work hard, learn constantly, diversify income, save and invest wisely, and give back to society.
Dreaming of becoming a billionaire can be the goal of many individuals, yet only some actually accomplish it. Forbes estimates there were 2,755 billionaires globally as of April 2021 with an aggregate net worth totalling $13.1 trillion – so how have these individuals achieved such greatness and what are their secrets of success?
Though there is no set formula or shortcut to becoming a billionaire, all billionaires share certain traits and habits in common: having a vision, taking risks, working hard, learning constantly, diversifying income streams, saving smartly for retirement and giving back to society.
This article will examine some of the tips and strategies employed by some of the world’s richest people to become billionaires, along with examples of how these principles are being put into action in their lives.
Vision One of the first steps toward becoming a billionaire is having a clear idea of your desired goals and why. A vision acts as a long-term goal that guides all your actions and decisions; this helps keep you focused and motivated when obstacles or setbacks arise.
Examples of billionaires who had vision are:
Jeff Bezos, founder and CEO of Amazon, had the vision to create “an everything store” which offered customers convenience, selection and competitive prices [2][2].
Elon Musk is the founder and CEO of Tesla and SpaceX. His vision for humanity was a multi-planet existence with sustainable energy sources on every planet [3].
Oprah Winfrey was inspired to establish her media mogul and philanthropist platform to inspire and enable individuals to live their best lives.
Unleashing Risks
One key element to becoming a billionaire is taking calculated risks. Risks involve uncertainty and potential loss, yet could also bring unexpected rewards. By taking risks, you are forcing yourself out of your comfort zone and trying new things that might otherwise seem intimidating or outright impossible.
Many billionaires who took risks are:
Mark Zuckerberg, co-founder and CEO of Facebook, left Harvard in order to pursue his goal of building an international social networking service that could connect people from around the globe.
Sara Blakely, founder and CEO of Spanx, invested her life savings of $5,000 to create a form-fitting shapewear that could solve women’s wardrobe woes.
Jack Ma, co-founder and former Executive Chairman of Alibaba Group, left his role as an English teacher to create an online marketplace to connect Chinese sellers with global buyers.
Working Hard
One key component to becoming a billionaire is working hard. Working hard means dedicating your time, energy, and perseverance towards reaching your goals while remaining positive despite obstacles or setbacks along the way.
Are some examples of billionaires who worked hard:
Warren Buffett, Chairman and CEO of Berkshire Hathaway, began investing at age 11 after reading several hundred business and finance books. J.K. Rowling, author of the Harry Potter series, wrote her first novel while struggling as a single mother on welfare benefits.
Michael Jordan was an iconic former basketball player and current owner of the Charlotte Hornets who endured relentless practice sessions to overcome multiple rejections and injuries during his career.
Learn Constantly
An essential factor of becoming a billionaire is being open-minded about new ideas and perspectives – this means actively seeking knowledge to help improve yourself and your business. Learning constantly means gathering new information and skills that can benefit both yourself and the organization you run, while being curious and welcoming of change.
Here are a few billionaires who learned consistently:
Bill Gates, co-founder of Microsoft and chair of the Bill & Melinda Gates Foundation, reads approximately 50 books annually across various topics.
Warren Buffett (again) spends an estimated 80% of his day reading newspapers, magazines, reports and books.
Elon Musk (once more) taught himself how to code, design rockets, build electric cars and launch satellites – an impressive accomplishment in itself!
Diversify Income
A key step towards becoming a billionaire is diversifying income. Diversifying means creating multiple streams of revenue which generate cash flow from different sources, decreasing dependence on any one income source and providing financial security and stability.
Some examples of billionaires who have successfully diversified their income are:
Richard Branson is the founder of Virgin Group and owns over 400 businesses in various sectors such as music production, travel, media, health, space exploration and space tourism. Jay-Z, on the other hand, owns businesses such as music production, streaming service subscription, clothing line line sale, sports management agency services and liquor brand ownership etc.
Kylie Jenner, an reality television star and founder of Kylie Cosmetics – which offers makeup, skincare, fragrance and fashion services – was recently in the news again for her business endeavors.
Save and Invest Wisely
One key to becoming a billionaire is saving and investing wisely. That means managing your money sensibly, making sound financial decisions that will build wealth over time, as well as avoiding unneeded expenses that eat away at net worth.
Here are a few billionaires who saved and invested wisely:
Warren Buffett (once more), lives modestly and invests in undervalued companies with strong fundamentals and competitive advantages.
Mark Cuban is the owner of the Dallas Mavericks and an investor on Shark Tank who makes sure he saves at least six months’ income in case of emergencies and invests in businesses he understands and believes in.
Jeff Bezos (once more), who invests nearly all his profits back into his businesses to foster their expansion and innovation.
Give Back to Society
A key aspect of becoming a billionaire is giving back to society through your wealth and influence, whether that’s through volunteering efforts or being generous towards those less fortunate who need your assistance.
Examples of billionaires giving back to society:
Bill Gates (again), with more than $50 billion donated towards various causes such as global health, education, poverty alleviation and women empowerment; Oprah Winfrey with over $400 million donated towards causes including education, women empowerment and disaster relief – are two examples.
Warren Buffett (once more), has pledged to donate over 99% of his wealth to various causes such as global health, education and poverty alleviation.
Conclusion
Becoming a billionaire may not be easy, but it is possible. By following some of the world’s richest people’s strategies and advice for financial success, your chances can increase considerably. To do so successfully requires having a vision, taking risks, working hard, learning continuously, diversifying income sources, saving and investing wisely as well as giving back to society.