Millionaires are gaining in number, but that doesn’t mean they are getting any closer to their goals. The goals are the same for all people. The only difference between the masses and the millionaires is in the methods they use to attain their goals.
There are several commonalities among these people, which also include things that separate them from the rest of us.
Do: Invent
Inventing is a tough career path to take. But if you’ve got the smarts to successfully create, patent, produce and market a product that people need (and thus, will buy in droves), you can build your future billionaire life on it. Successful inventions aren’t necessarily complicated or high-tech items but can be improvements on existing items. For example, James Dyson invented a better vacuum cleaner, and Gianfranco Zaccai invented a better mop, the Swiffer.1 2
KEY TAKEAWAYS
- Billions can fall into two classes: those who invented something new, or those who do a previously invested thing better than anyone else.
- Being a billionaire takes an extreme work ethic and for many, quite a bit of patience.
- Billionaires are always learning and if you have the chance to ask them, they will almost always say they are the student, not the teacher.
- The most common traits among billionaires are work ethic and refusing to give up.
Do: Innovate
Innovation is the fine art of considering a current mainstream market and finding a creative way to improve the current offering.https://0c4b732dab25cc41662b01325e03ff45.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
Successful innovators will identify the real needs behind customer demands and will meet them with a smarter, better, more efficient product, or with a service that provides more than its competitors. Others may develop a business that works in a way just different enough to stand out from the rest. IKEA founder Ingvar Kamprad is a great example of someone who used innovation to yield billions.3 Furniture doesn’t seem like a very exciting market, but his approach of providing modular, economical pieces with a modern flair from Sweden and other European designers and manufacturers to a global market proved fruitful.
Do: Invest
Self-made billionaire Warren Buffett is famous for his frugal ways and for his smart investments. Investing, of course, requires a little seed money and some accurate insight into which investments are smart and which could result in a loss. If you can follow in the footsteps of billionaire investors like Buffett, then this might be the route for you.
Do: Be an Entrepreneur
The third option for becoming a billionaire is in the time-honored tradition of entrepreneurial pursuits. Starting a business and taking it to success isn’t always easy, but for those with good business sense and the ability to spot start-ups that have the potential to be great, entrepreneurship can be the vehicle to great wealth.
Billionaire entrepreneurs might work in one of two ways: either by coming up with a great idea and taking it all the way, as in the case of Bill Gates and Microsoft or by spotting someone else’s good idea and investing in it early on. Both are viable ways to reach the success that can get you billions of dollars when it comes to your own net worth.
Do not think you know it all
The moment you think you have nothing left to learn is the moment you kill your potential for becoming a billionaire. Especially if you’re interested in building your wealth through inventing or innovating, you have to be curious, open-minded and always learning. Those qualities allow you to look at old things in a new way, to see the potential for change and profit where others see only what already had been done.
Do not make flashy investments
The latest and greatest investment opportunity may be fun to talk about, but one of the pitfalls of would-be billionaires is to jump in on the “next big thing,” which doesn’t always turn out to be so big. Investors who make billions from their investments avoid flashy, fun and high-risk picks and instead choose those with long-term potential to provide great returns. Real estate, energy, steel, telecommunications, pharmaceuticals, and energy are among the picks, while high-tech and intriguing but risky options may go either way.
Do not quit too soon
Entrepreneurial types who succeed realize that success rarely comes overnight. One business idea might not pay off, but the next might. It’s not easy to build something from scratch, especially when your something is a fortune of billions. Time is on your side if you don’t rush it.SPONSOREDOpen A Trading Account in Under 5 MinutesOpen a trading account in under 5 minutes and join 400,000 others globally trading long or shot on US, AU, UK and EU Share CFDs, and access 300+ other CFD products over assets like indices, gold, and forex with an award-winning broker. Trade from $6 commission a side, and access free education and trading tools with 24/5 phone support. Learn more about trading with Vantage FX and get started today.
Creating Opportunities
Study hard. Normally, billionaires don’t happen by accident. Be a billionaire by studying interest rates, tax brackets and dividends.
Study finance and entrepreneurship. Learn to identify consumer needs, then develop business models to fulfill those needs. Currently, computer science skills and new technology are lucrative careers.[1]
If you haven’t heard already STEM jobs (Science, Technology, Engineering, and Math)[2] are going to be on the rise and are already on the rise. Taking “STEM” classes to be able to increase your chances of getting a job in the future, as well as they are fields in which the pay check has almost no limit.
Read about successful billionaires; Warren Buffett, Bill Gates or Jon Huntsman, Sr. Be wise with money to amass more.https://32dafe9f68c09841f3fd17ef2c0ee994.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html
Save money. It takes money to make money. Set aside a specific amount of money from each paycheck and put it in a savings account, to collect interest and use for future investments.
Decide what percentage of earnings to spare – as little as $20 per paycheck will make a difference over three or four years. Invest money you can afford to lose in a high-risk investment.
Start an Individual Retirement Account (IRA). Available from financial institutions, IRAs are customized financial plans, set up to save for the future. To save a billion dollars, start saving as soon as possible. Interest accrues on savings.[3]
Depending on the financial institution, a minimum amount of money may be required initially. Research options and talk to a financial advisor.
Pay off your credit card debt. It’s hard to get ahead with debts hanging over head. Student loans and credit card debt should be paid off as soon as possible. Average annual percentage rates vary between 20% and 30%, so the balance will continue growing.[4]
Make a five-year plan. Estimate how much money to save over 5 years. Decide the best way to use money, whether it’s investing, starting a business or allowing money to collect interest.[5]
Keep finances a priority. Write financial goals down and refer to these regularly. To stay interested in financial projects, write reminders and put them where they will be seen every day – for instance, on the bathroom mirror or the dashboard of your car.
Start With a Dream
“I intend to be, the richest man in the world.” – Howard Hughes
“It does not take money to make money.” – Robert Kiyosaki
Becoming a billionaire begins with a dream. One of the free gifts given to us by our creator is the gift of imagination. It costs nothing to dream. Yet, most people don’t dare to dream and those who do, dream small.
“People who dream small dreams continue to live as small people.” – Rich Dad
“Aim for the highest.” – Andrew Carnegie
On several occasions, I have shared my dream to create wealth and be a billionaire with friends and all I got were fingers pointing at me saying; “you must be a joker.” Do statements like that deter me? My answer is no. I still continue to dream big and pursue that dream vigorously. If becoming a billionaire is your lifetime goal; then allow your mind to wander; dream big and shut your ears to critics.
“I always knew I was going to be rich. I don’t think I ever doubted it for a minute.” – Warren Buffett
“You are nuts and you should be proud of it. Stick with what you believe in.” – Trip Hawkins
“All men dream, but not equally. Those who dream by night in the dusty recesses of their minds wake up in the day and find out that it was vanity. But the dreamers of the day are dangerous men, for they may act their dreams with open eyes to make it possible.” – T. E. Lawrence
Develop the Billionaire’s Mindset or Thinking Pattern
“If I lose a billion dollars, I will have it back in less than five years.” – Henry Ford
The second step to becoming a billionaire is to develop the mindset of billionaires. Do you know that the thinking capacity of millionaires differ from that of billionaires? To become a billionaire, you must develop your mindset to accommodate that status. You must think big and you must also increase your capacity to handle the corresponding risk.
“You must take risks, both with your own money or with borrowed money. Risk taking is essential to business growth.” – J. Paul Getty
Becoming a billionaire means being willing to risk failure; you must also bear in mind that achieving any worthwhile goal in life requires sacrifice. You must see possibilities in the actualization of your dreams and ultimately, you must train your eyes to see opportunities disguised as problems; you must see opportunities others don’t see.
“Someone asked me, ‘how can I find a good business opportunity? I replied, ‘go and look for adversity.’ If you can handle adversity, you will find opportunity. Adversity and opportunity are two inseparable twins.” – Ajaero Tony Martins
“A good businessman must have nose for business the same way a journalist has nose for news. Once your eyes, ears, nose, heart and brain are trained on business, you sniff business opportunities everywhere. In places where people see a lot of obstacles, I see a lot of opportunities.” – Orji Uzor Kalu
“If you want to go broke; go it big. I will prefer to lose a billion dollars than to lose a million dollars.” – Ajaero Tony Martins
Increase your Business Skills
“Skills make you rich, not theories.” – Rich Dad
Increasing your business skills is essential to the entrepreneurial process. In fact, becoming a billionaire requires more than just business skills. It require financial intelligence, strong intra personal skills and investing skill. Making money is a skilled act; making money is all about utilizing your acquired entrepreneurial skills.
“The ability to sell is the number one skill in business. If you cannot sell, don’t bother thinking about becoming a business owner.” – Rich Dad
Conclusion
You’ve probably heard a quote somewhere stating that a millionaire is someone who earns a million dollars a year. But an important thing to note is that a millionaire is not merely a person with money in the bank. It’s someone who remains financially independent, or self-sufficient, rather than reliant on others to fund their lifestyle.