Have you ever wondered how rich people get richer and stay that way? Let’s not even consider those who inherited their wealth. Instead, let’s take a look at the self-made men and women who made it into the big time. What are their secrets?
In this guide...
Learn the ABC of Making Billions
1. Jack Ma – be bold
Chinese internet entrepreneur and billionaire Jack Ma says it’s all about looking for opportunities and taking advantage of them. He advises us to identify that high possibility and then take action without delay, giving it everything we’ve got.
Ma says we should look beyond our current circumstances and have the confidence to say you can achieve your goals instead of looking for reasons why you can’t. If you lack skills, find people who have them. You don’t have to do everything yourself.
He knows what he is talking about too. As the founder of e-commerce business Alibaba, just about everyone told him his dream was impossible. After all, China is not a very internet friendly country.
Jack says it’s all about positive attitude, good decision making, and guts – but he believes that courtesy and fairness go a long way. Last, but not least, he warns against chasing money to the exclusion of everything else.
“It’s about lifestyle.” – Ma says.
2. Bill Gates – learn from problems and failure
Bill Gates needs no introduction. Did you think he ‘got lucky’ and just cruised his way to the top? Think again. Gates advises us to “learn from failure” and you can be sure that not all his ventures have been successful. “Success is a lousy teacher. It seduces smart people into thinking they can’t lose.” – he says.
One of Gates’ failures was dropping out of college. Today, he advises those who want to take their careers to the next level to get an education.
Other advice from Gates? He tells us to think out of the box, and not tie ourselves to doing things in the same way that everyone else does. He’s also a big advocate of setting goals and tracking your progress. So why not think big? After all, Gates told his college professors he’d be a millionaire by 30. They must have laughed at him, but he more than achieved his goal!
3. Donald Trump – know when to cut your losses
Love him or hate him, Trump has built a lot of businesses. Not all of them have been successful – but he is still a wealthy man. His advice? Knowing when enough is enough, and when it’s time to walk away is part of his secret to success.
Having too much of an emotional investment in your business is stressful, and you won’t know when to call it a day when things don’t go as planned. Trump knows when to walk away, and he’s learned the hard way, moving from wealth to a position of extreme debt before clawing his way back up again.
Dont’t miss: 10 Rich People Who Went Broke!
4. Mark Cuban – love what you do
Cuban started out pretty ordinary, with an upper middle-class background. Today, his wealth is estimated at over 2 billion dollars. Much of that has come from building up and then selling businesses. He’s also keen on investing money to make even more money.
What does he like doing? Building businesses and investing! His advice to us is that we should do what we love and if we don’t love it, we shouldn’t be doing it. That sounds like a recipe for success we’re going to enjoy following!
5. Other points to consider
Here are some other tips from some of the richest people in the world:
- Oprah Winfrey advises us to believe in ourselves instead of limiting ourselves.
- Pierre Omidyar says that success isn’t about you, but about how you help others to succeed.
- Michael Bloomberg says it’s about hard work and getting the job done.
- Chris Koch says your goods or services should make people’s lives better if you want to be a winner.
- Tony Hsieh warns us not to lose sight of happiness. To him, that’s the only measure of success that matters.
What Do All These Wealthy People Have in Common?
- They have a goal, and they have a plan.
- They look for opportunities.
- They don’t limit themselves by thinking small.
- They have all failed at some time in their lives, but they don’t give up.
- They work hard.
- They know that money isn’t the most important thing in the world.
Turning Money into Even More Money
Have you ever heard stories about perfectly ordinary people who are found to be millionaires after they pass away? It’s more common than you might think, and it all comes down to the power of compounding.
Simply put, that means that money makes interest, and that interest gets paid on the interest. The same applies to shares. If you get dividends and reinvest them, you have even more shares and even more dividends. Good shares will also increase in value over time.
Create a Business Plan and Double Your Money
1. Avoid high-risk ‘investments’
High-risk investments MIGHT produce more income, but they also might end up being completely worthless. The higher income payouts are the only lure that can persuade people to buy them at all.
It’s better to choose stable, safe investments with lower income yields, but with the advantage of knowing your money is safe.
As for ‘playing the stock exchange’ or crazy gambles like binary options trading, stay well away. It’s a risky business. Invest in good stock and be in it for the long term.
2. Precious metals are a bad investment
A lot of people think that buying and owning gold will make them a lot of money. But Warren Buffet warns against this. Not only can your precious metals be stolen, but their prices are notoriously volatile – and people who sell gold to the public seldom buy it back for anything close to the price charged.
3. Have a balanced portfolio and ride out the market
Having a balanced share portfolio is a way of hedging your bets. You will invest small percentages across a range of companies in a variety of sectors. These include resources, financials, industrials, and property.
If we look at recent history, we see the value of resources (and share values) tumbling drastically in the last couple of years. If all your investments were in this sector, you would have lost out in a scary way!
If you haven’t got much to invest, choose unit trusts, because these are shares in a ready-made balanced portfolio. If you have more to invest, get expert investment brokers with a solid track record on your side.
Last but not least, ride out the market when things get rough. During the last financial crisis, share values dropped by as much as 60%, but they have more than recovered since then. Don’t get greedy, and never panic!
Other Advice from the Big-Time Money Gurus
- Avoid getting into debt.
- Beware of the lures of the credit card!
- Don’t accumulate a lot of unnecessary stuff.
- Don’t pay more if you could pay less for something that serves the same purpose.
- Live beneath your means.
- Start saving sooner rather than later.
- When things are going well, give back.
The most interesting about the world’s wealthiest is that they seem to have maintained their humility and their priorities, and money isn’t their biggest priority.
Success isn’t about being rich. It’s about living a full and rewarding life.
Not a billionaire yet? Don’t let it get you down. If you love and are loved and have room in your heart for joys of being alive, you have the riches that matter the most.
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