How To Be A Billionaire - 15 Steps (With Pictures)

2/17/2019 How to Be a Billionaire: 15 Steps (with Pictures) - wikiHow
How to Be a Billionaire
Author Info | Reader-Approved
In this Article: Article Summary Creating Opportunities Investing Maintaining Wealth References
Being a billionaire is more than having a bunch of zeroes in your bank account. Investing capital may be new to some, but it is
not a barrier to becoming a billionaire. Working from a life of little or nothing to living in the lap of luxury is the classic American
dream. To become a billionaire, create opportunities, invest wisely and retain wealth. Here's a theory of how to become a
billionaire.
Part
Creating Opportunities
1
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1 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.
If you haven't heard already STEM jobs (Science, Technology, Engineering, and Math) 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.
2 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.
3 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.[1]
Depending on the financial institution, a minimum amount of money may be required initially. Research
options and talk to a financial advisor.
4 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.[2]
5 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.
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.
Part
Investing
2
1 Buy real estate. A common way to make money is investing in real estate. Property may gain in value
over years, and may provide a good return on investment. Investments can be flipped, rented, or
developed.
Beware of investing during an artificially inflated market, and make sure the monthly mortgage is easily
affordable. It would be a good idea to read about the 2008 sub prime mortgage crisis in the United
States to learn from cautionary tales.
2 Invest in business. Starting your own business or buying into one can be a solid way to make money.
Create or choose a company that offers a product or service that you would buy yourself, and put time and
money toward improving it. Learn about the industry to differentiate good and bad business investments.
Investing in green energy and computer technology may be a good plan for the future. These
businesses are projected to grow over the next decades, so investing now may be a smart investment.
3 Buy and sell stocks. The stock market may be a good place to increase wealth. Watch the markets
carefully before buying and pay attention to which stocks are successful. Be informed to make smart
purchases. Most stocks appreciate over the long term. Ride out small dips in value and take occasional risks.
Dividend reinvestment plans (DRIPs) and direct stock purchase plans (DSPs) bypass brokers (and
commissions) by buying directly from company agents. These are offered by over 1,000 major
corporations. Invest as little as $20-30 per month; fractional shares of stocks can be bought.
4 Open Money Market Accounts (MMAs). These accounts require a higher minimum amount than regular
savings accounts, but accrue twice the rate of interest of a savings account. High-yield MMAs are
somewhat risky--withdrawing the money and affecting its investments are limited--but it's a good way to allow
money to grow by doing, essentially, nothing.
5 Invest in government bonds. Bonds are interest certificates issued by government agencies, like the
Treasury, which offers no risk of default. The government controls the printing presses and can print
whatever money is required to cover the principal, so these are relatively safe investments and a good way to
diversify your investments.
Talk to a trustworthy broker and consider a bond-buying plan over to diversify your portfolio.
Part
Maintaining Wealth
3
1 Consult good brokers for advice. Money is as good as the advice received. After accumulating a
considerable amount of wealth, nobody wants to spend time huddled in front of a monitor watching stocks
change by fractions of a percentage. You're going to want to be out living life. Good, trustworthy financial
advisors and brokers will work to keep your accounts swelling with excess funds.
2 Diversify portfolio and investments. Don't keep money in one place. Diversify your portfolio and invest in
stocks, real estate, mutual funds, bonds, and other investments recommended by brokers to modify risk. If
a risky investment in ShamWow absorbent towels ends up tanking, at least you've still got a considerable
amount of money in other ventures.[3]
3 Make smart financial decisions. The Internet is full of penny stock schemes and get-rich-quick hokum
that preys upon the ignorant and seduces gullible people into making bad financial decisions. Do the
research and commit to a lifetime of investing and making money. There are very few exceptions to becoming
an overnight billionaire.
When in doubt, be conservative with investments. Diversifying money wisely, letting interest accrue and
riding fluctuating markets will be a smart decision in the long run.
If anything seems too good to be true, be careful. Never act too fast and always analyze the situation.
4 Know when to get out. At a certain point, knowing when to pull out of an investment before it collapses
from under you is essential. If you've surrounded yourself with smart brokers, listen to their advice, but also
know when to listen to your gut.

If you see an opportunity to sell big and make a profit, do it. Profit is profit. If that stock ends up
appreciating the next year, you've still made money that you can reinvest elsewhere.
5 Act the part. To be a billionaire, act like one. Mingle with moneyed and cultured people, pick up advice and
knowledge from the experienced.
Cultivate interests in fine art, fine dining, and travel. Consider buying a yacht and other standard
trappings of the wealthy that are unaffordable.
There's a distinction between "old money" and "new money." New money is a derogatory term for
people who have gained wealth quickly and live ostentatiously, spending and living a lavish lifestyle. To
hold onto wealth, learn from old money and ascend to the stratosphere.
Donagan, Top
Answerer
9190 answers
Community Q&A
Knows about Mathematics, Correct
Usage of Words, Punctuation, and
more.
Question
How do I become a billionaire from being a writer?
Donagan
Top Answerer
Write about a subject that is overwhelmingly fascinating to millions of people.
Question
How old do you have to be to invest in business and buy stocks, real estate, and the like?
wikiHow Contributor
Community Answer
There is no specific age to start to be an investor. Warren Buffet started when he was 7 years old. Read up on what
you want to invest in, and ask anyone you know who invests for tips.
Question
How can I become a billionaire quickly if I am young?
wikiHow Contributor
Community Answer
Work hard and connect with people who have money. They may introduce you to investment and job opportunities.
Question
When starting my own company, is it better to do so on a national level or an international level?
wikiHow Contributor
Community Answer
Often, it's better to start a company on a national level. When your company is gets big enough, you go
international.
Question
How can I save money when I'm so broke?
Donagan
Top Answerer
You can't. But maybe you're not as broke as you think you are. Maybe you're just in the habit of buying things you
don't absolutely ''need.'' Try living within your means. Don't buy anything unless you literally cannot survive without
it. If you ever get un-broke, start saving a little bit of money every month. It doesn't have to be much. Just start
saving. You'll surprise yourself after a while.
Question
Can a singer become a billionaire?
wikiHow Contributor
Community Answer
Hypothetically, anyone can become a billionaire through any job, but realistically, no. Most wealthy musicians have
amassed their wealth in other ways. If your dream in life is to become a billionaire, there are only a select number of
jobs whichDonagan,
could even allow a person to become one and even these jobs have next to zero odds. Instead of
Top
Answerer
focusing on money, find something you love to do because having passion is the most important thing.
9190 answers
Knows about Mathematics, Correct

Usage of Words, Punctuation, and
more.
Question
Can a 13-year-old become a billionaire? If yes, how?
Donagan
Top Answerer
Every billionaire was once 13. Read books about investing. One good one is "The Making of An American Capitalist"
about Warren Buffett.
Question
How do I open my own business?
wikiHow Contributor
Community Answer
You should read other articles on wikiHow about starting your own business. For example, here is an article which
should directly answer your question.
Question
Can I be a billionaire if I start a retail business?
Donagan
Top Answerer
Possible. Not probable.
Question
Can I be a billionaire mechanic with bad grades in high school?
wikiHow Contributor
Community Answer
If you work hard, anything is possible. However, you'd probably need to own an entire chain of mechanics
workshops across a country, and offer something extraordinary over and above what other mechanics do for the
billions to roll in. Perhaps focus first on improving those grades and broadening your talents before dreaming of your
billions; it also pays to realize that money truly isn't all that matters in life.
Tips
Learn to take calculated risks. Money earns interest in the bank, but to earn more consider other ways to invest.
Be creative. To start a business or invest in a business, create a solution to a problem with an angle that no one
else has considered.
Develop a framework of proper time management and routine. Save time and use extra time constructively.
Accept setbacks. No one gets absolutely everything right all the time, so it stands to reason that on your climb to
billionaire status you will make a mistake or two with investments, stocks, or other monetary areas. As long you
learn from your mistakes you should be able to brush off the loss without too much trouble.
Warnings
Avoid get-rich scams. Run from people promising unrealistic stock market returns (any return of 10-15% or more).
References
1. http://www.getrichslowly.org/blog/2007/06/07/how-to-start-a-roth-ira-and-where-to-do-it/
2. http://www.forbes.com/2010/07/14/get-rid-of-credit-card-debt-personal-finance-settlement.html
3. http://www.investopedia.com/articles/03/072303.asp

How To Be A Billionaire - 15 Steps (With Pictures)

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How To Be A Billionaire - 15 Steps (With Pictures)

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2/17/2019 How to Be a Billionaire: 15 Steps (with Pictures) - wikiHow

know when to listen to your gut.

How do I become a billionaire from being a writer?

Write about a subject that is overwhelmingly fascinating to millions of people.

How can I become a billionaire quickly if I am young?

When starting my own company, is it better to do so on a national level or an international level?

How can I save money when I'm so broke?

Can a singer become a billionaire?

Knows about Mathematics, Correct

Can a 13-year-old become a billionaire? If yes, how?

How do I open my own business?

Can I be a billionaire if I start a retail business?

Possible. Not probable.

Can I be a billionaire mechanic with bad grades in high school?

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