Becoming a billionaire is more than just a bunch of zeros in your money. The world of investing and capital is a chaotic and strange thing for most “ordinary people”, but that doesn't mean there are any obstacles for you to become a billionaire. Trying to rise from the bottom or zero to a life of luxury is a classic story, but you must learn to create opportunities for yourself, invest wisely, and safeguard your wealth in order for you to succeed. See Step 1 for further instructions.
Step
Method 1 of 3: Creating Opportunities
Step 1. Learn
People don't become billionaires by accident. Describe as many variables as you can before making a plan, such as interest rates, tax ranges, dividends and so on. Take classes on the internet or at university about finance, read books about investing and know the rules.
- Study finance and entrepreneurship to learn how to identify market and consumer needs and develop business models based on those needs. Strengthening sought-after skills such as computer science and technology is an important way to reach the doorstep of new media and money.
- Read about successful billionaires and how they made their fortunes, such as Warren Buffett or Jon Huntsman, Sr. Being wise with your money is the surest way to collect even more.
Step 2. Start saving money
To make money, you need money. Take a certain amount of money out of your paycheck as soon as you get your paycheck and keep it in a savings account, to use as a future investment or just to collect interest.
Determine the percentage of your income that you can spare and start from there – as little as $200 off one paycheck will make a difference in three or four years. If you decide to put the money into a high-risk investment, then your risk is only as much as the money you are willing to give up
Step 3. Start an Individual Retirement Account
Available at most financial institutions, the Individual Retirement Account is a customizable financial plan that you can set up to start saving for the future. If you want to save money until the zero is nine, you need to do this as soon as possible. Your interest will accrue on your savings and take the amount of risk in the investment to make money on the money you have.
Depending on the financial institution, you may need to invest the smallest amount of money to get started, or you won't be able to. Study the options and talk to your financial advisor
Step 4. Pay off your credit card debt
It's hard to get ahead if you have debt looming over you. Education loans and credit card debt should be paid off as soon as possible. The average annual percentage rate can vary between 20% and 30% which means your debt will grow if you don't settle it soon.
Step 5. Make a five-year plan
Calculate manually how much money you can save over 5 years. Depending on the amount, decide what your money is best used for, whether investing, starting a business or simply letting your money continue to grow interest.
Make your plans urgent. Keep your ideas at the forefront of your mind by writing them down and looking at them regularly. If you're having trouble staying interested in a project, write a reminder of your plan and put it somewhere you see every day-for example, on your bathroom mirror or on the dashboard of your car
Method 2 of 3: Invest
Step 1. Buy a property
A common way to make more money is to invest in property. Property values will generally grow over time, and will probably pay off a good return on your investment. Your investment can be exchanged, rented or expanded.
Be careful investing in artificial inflation markets, and make sure you can pay your monthly mortgage easily. If you don't know much about the 2008 subprime mortgage crisis in the United States, it might be worth reading up on it and learning some of the stories as a warning
Step 2. Invest in the business
Starting your own business or buying a business can be a powerful way to make money in the long run. Create or choose a company that offers a product or service that you would like to buy yourself, and put your time and money into promoting it. Be knowledgeable about the industry you want to be in and learn to differentiate between good and bad business investments.
Investing in green energy and computer technology is a good plan for the future. The businesses below are predicted to grow in the next 10 years, which means starting now is a smart investment
Step 3. Buy and sell shares
The stock market can be an excellent place to grow your wealth. Look at the market carefully before you start buying and see which stocks add value; Gathering this information will help you make smart purchases in the future. Once you invest, understand that most stocks go up in the long run. If you can, stick to stocks that are going down a bit and take the risk once in a while.
Dividend investment plans and direct stock purchase plans are not made through brokers (and their commissions) by being purchased directly from the company or their agents. It is offered by more than 1000 large corporations, and you can invest as little as IDR 200,000,00-Rp300,000,00 per month and you can buy small shares
Step 4. Deposit your money in a Money Market Account
This account has a higher minimum than a regular savings account, but the interest rate will be double that of a savings account. A high-yield money market account is a bit risky-your ability to withdraw the money and your ability to influence the investment is limited-but it's a great way to let your money, at its core, grow by doing nothing.
Step 5. Invest in government bonds
A bond is a certificate of interest issued by a government agency, specifically the Ministry of Finance, that offers a no-risk default. Because the government controlled the printing press and could print whatever money was needed to cover the principal, bonds were a relatively safe investment and a great way to make money.
Talk to brokers with whom you are already on good terms and develop a bond buying plan over the next few years to grow your portfolio and keep your money in different places
Method 3 of 3: Maintaining Wealth
Step 1. Consult a stockbroker for good advice. Your money is commensurate with the quality of the advice you receive
If you're starting to add to your wealth, you won't want to spend your time staring at a monitor watching stocks change by percentage. You definitely want to get out there living your life. Surround yourself with good financial advisors and stockbrokers you trust who will work for you to keep your money growing.
Step 2. Develop your portfolio and investments
Don't keep your money in one place. By developing a portfolio and investing in stocks, properties, mutual funds, bonds and other investments recommended by your broker, you ensure that your money will be safe in different markets and will move differently. If you make a risky investment in a ShamWow absorbent towel and it doesn't work, at least you have a sizeable amount of money elsewhere.
Step 3. Make smart financial decisions
The internet is full of stock and get-rich-quick scams that prey on and force gullible people to make bad financial decisions. Do your research and invest and make money for life. There is no such thing as an overnight billionaire.
When in doubt, be conservative with your investments. If your money is growing well, allowing interest to accrue and the market to fluctuate may be a smarter decision in the long run. Less is better. Instead of actively wasting time with your money, wait a minute
Step 4. Know when to stop
At some point, you have to know when to stop and get out of something before it crumbles before you. If you are surrounded by smart brokers, listen to their advice, but also know when to listen to your instincts.
If you get an opportunity to sell a high value stock and make a profit, do it. Profit is profit. Even if the stock goes up in the next year, you already have some money that you can invest elsewhere. There is not only one way to invest
Step 5. Act like a rich person
If you're going to be a billionaire, you have to act that way. Surround yourself with rich and cultured people, taking advice and tips from experienced people.
- Develop an interest in fine arts, fine dining and travel. Consider buying a yacht or a typical rich man's “toy.”
- There is a difference between "old rich people" and "new rich people". “New riches” is a harsh term for people who have just made a lot of money fast and live a life of showing off, spending a lot of money and living a luxurious lifestyle. If you want to keep your fortune, learn from the “old rich” and rise to the top.
Tips
- Learn to calculate risk. Your money will earn interest when you put it in the bank, but will earn even more if you use it in smart, but somewhat risky ways.
- Be creative. If you are looking to start a business or invest in a business, try to think of a point of view that no one else has considered.
- A good time setting and routine can add a good scope of work to your job. Saving time and using it for other work will add to your money.
