Start A Business Like These Self-Made Billionaires Or Invest Your Way To Wealth?

Start A Business Like These Self-Made Billionaires Or Invest Your Way To Wealth?
Start A Business Like These Self-Made Billionaires Or Invest Your Way To Wealth?

What does it mean to be self-made?

When it comes to financials, it is about blood, sweat, tears, and hundreds of thousands of hours of hard work and dozens of rejections before finding that success. It is not about getting money inherited to you and growing it.

It’s about taking that last $2,000 in your life savings, throwing it into a modest business in your garage or spare bedroom and putting in the hours and effort to nurture it and make it your own and watching it flourish, fueled by your passion.

And when you have the right skill, excellent customer service and passion for your work, you can make a million dollars – or a billion! – through your own work.

Before you think it seems impossible, just know this – of the Forbes 400 list of richest people, two-thirds of the group (almost 275 billionaires) got their money the old-fashioned way – they earned it.

So for a little inspiration, here is a prominent list of 10 self-made billionaires.

Bill Gates

Bill Gates may not have run Microsoft for the last 20 years, but he is Microsoft. A Harvard dropout, Gates collaborated with friend Paul Allen and developed the iconic company in the mid-1970s.

Gates had been programming computers for about 10 years or so before Microsoft came into existence, as he started as a precocious 13-year-old. He began with a deal to produce what was called Microsoft Disk Operating System to be installed in IBM computers, and his continued development of other software helped the company take off.

Microsoft was started in 1975, incorporated in 1981 and became a publicly traded company five years later. He is still the largest owner of Microsoft stock, which accounts for much of his wealth, which is estimated at about $85 billion.

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What is Wealth

What is Wealth

 

This post will be a short one as I am swamped with work and in addition have crazy demands on the family front. It will be about the best topic in the personal finance world to discuss, and it is called what is wealth.

Wealth has been defined by Investopedia as: A measure of the value of all of the assets of worth owned by a person, community, company or country. Wealth is found by taking the total market value of all the physical and intangible assets of the entity and then subtracting all debts.

If you do this money management exercise it will reveal a positive number and you might be ecstatic. On the flip side for some, it will reveal a negative number, and a feeling to turn things around to eventually bring things on the positive side of money.

Now I leave you with what is wealth to me and hopefully you can relate to how I described wealth below in Acrostic writing style.

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Will you Achieve Financial Independence

Will you achieve financial independence
Hit the switch today and begin your Financial Independence Journey

 

Well you guessed it, as I am talking about reaching financial independence once again. I am posing this question today, will you achieve financial independence before age 65? Well the jig is up and there’s a ton of examples online of people who actually reached the imaginary Financial Independence before getting grey hair.

This is my goal and it should be everyone’s lifetime goal also, because long gone are the days people worked for 40 years dedicated to a job who can easily replace any of us with the next person. Granted I am not telling you to stop working forever, I am just advising you that you can work on your terms when you reach this next stage of life. What a fun stage it can be, don’t you agree?

Below is the list of bloggers who already reached Financial Independence.

 

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The Frugal Millionaire

 

The Frugal Millionaire
The person who enlightened us with the facts about The Frugal Millionaire

Ok so I know many people think once someone reaches millionaire status that they can begin to purchase a brand new Mercedes every two years just to live the good life. But that is not the case as most average millionaires actually care more about staying low key and remarkably maintaining the wealth they worked so hard to build.

Now I bet your asking why are they being so frugal if they are actually millionaires. Why don’t they just spend all day like the average tourist on vacation. Well if I were to give you an off the cuff answer, it would be because by that point in life, the average millionaire is already older and a bit wiser with how money management works. They also prefer to value every dollar and the opportunity it can bring in future revenue.

This usually equates to the average millionaire believing in the live modestly lifestyle, and is way past the, drive a Ferrari on the weekends because that makes me look cool syndrome.

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Do you want to Be Rich?

 

Do you want to be rich

There’s no secret sauce to becoming rich or maybe there is, and let me explain why below. Do you want to be rich? If the answer is yes, you may want to pay extreme attention as I’ll outline all the steps to getting the illusive first million. I’ve read many times in hundreds of websites, that in order to be rich you have to do these 3 things:

Pay yourself First

Spend Less than you Earn

Have and Maintain a High Income

While yes these three factors do matter to the average person who dreams of swimming in the dough like Scrooge Mc Duck, I will tell you becoming rich takes a deeper process and an involved plan. Many people seem to have the mentality that becoming rich is all about luck and or hitting some magical monetary jack pot.

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Being a Rich Imposter

Being a Rich Imposter
This Fake Badge was found in the street, I imagine off the car of a Rich Imposter

 

The other day I was in the supermarket and I noticed a dude, who looked like he was about to attend a fashion show sporting an upscale leather coat, fancy shoes and clothes. If you’re going on a hot date with one of the Victoria secret models then you might need to dress like that to show a higher standard than the norm. Because if you don’t amaze you will not get a second date most likely. But just to get tomatoes, milk, and some eggs really doesn’t make sense to me to dress like a Valentino model.

Do you feel like stuff defines you? If you always look for stuff to solidify your status, then guess what your being a rich imposter. If the title makes you feel some type of way aka mad, then you’re really being a rich imposter times 2.0. IF all you own is fancy name brand stuff, then you are either rich or a rich imposter. The trick is not to be a rich imposter because then you will actually never reach being fundamentally rich. Wow did I just blow your mind Mr. Imposter?

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Real Estate Investment Trust

 

REAL ESTATE Investment Trust
Paying Dividends for over 40 Years.

This is not a new investment opportunity as it has been around for a long time now. The problem is if you are not into investing and do not read investing books, you probably never heard of this type of investment opportunity. What is a real estate investment trust? Exactly what you might think it is when you read the title. They are companies that invest in real estate holdings, offer shares to investors so that they can own a piece of the pie. This in turn provides the company with the influx of cash to invest into more properties. Now the secret sauce to this deal is that by law these REITS must pay out about 90% of all the income they make back to shareholders. If they make 1 million dollars a year they have to pay out 900K to all the owners. Usually all the dividends are paid out on a monthly time schedule. Now what company you know gives almost all of its profits back to the owners? (None I’ve seen)

I am a big proponent in holding some REITS long-term, as it can provide a substantial amount of income and the ability to diversify nest egg money away from the usual U.S. large cap equities. The REIT market on average provides yields of about 5% and this is not including any capital appreciation on the price of the stock when you decide to sell. For a few examples of REITS in the market today see below:

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The Richest Man in the World

the richest man in the world
This Guy is Retired and still is the Richest Man in the World.

Did you know that the richest man in the world according to Forbes is Bill Gates? If you by happen chance do not know who he is, Bill Gates is the founder of Microsoft Inc. He basically has about 78 billion dollars as of July 2014. Half of that money is in Microsoft shares, and the kicker is he has been retired from Microsoft since 2008. (Since then he has been on the board) Now why in the heck is somebody who is retired still the reigning champ of wealth? Maybe it is the 6% in ownership of the total Microsoft Stock or maybe he has millions coming in from the books he authored. I decided to write this because I am confused as to how someone who doesn’t make a salary is still worth more than Buffett or Carlos Slim, which both are still employed in their respective companies?   If you can solve this puzzle then you maybe can succeed to grow wealth and never lose it in retirement.

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