While billionaires have just as many personal flaws and regrets as everyday people have, a healthy portion of these operators have climbed the ladder to make savvy financial choices along the way. Famous figures like Bill Gates, Warren Buffet, Jeff Bezos and Larry Ellison are the tip of the spear when it comes to their commercial acumen and business savvy.
Are there lessons that can be gleaned by others when assessing the tactics and strategies that they employee? The path towards a billion dollar empire is limited to a select few with just over 2,000 of these people existing in the world, but transitioning to a 6-figure income from 5 figures, or turning half a million into a full million will require some insight and endeavor to make it possible.
A simple and frugal approach is where some billionaires have found the most success along their journey. Buffet would be emblematic of a high profile figure who quietly amassed a fortune without blowing his cash on an extravagant and lavish lifestyle. His trick was to make key investments at select times, growing a modest amount into a large fortune over the span of decades. It didn’t draw the headlines or attract widespread interest to begin with, but it achieved the ultimately objective.
It is a fact that billionaires by and large think about themselves and their financial investments before considering others. Without question it is a selfish maneuver from the outset, but by pocketing income and deciding to save on a regular basis before covering debts and financial responsibilities, it does allow the investment practice to start in earnest. Eventually if those debts are outstanding then it will be a wasted exercise, but in terms of priority there is a clear distinction between personal saving measures and covering bills that are due from other parties.
A common case study that billionaires will always point to is the need to create something that communities want and need. This is where these operators will break down into two essential categories: those that innovate something new and others that manage to invest and leverage those creations better than their counterparts. If there is an entrepreneurial streak and a recognition for a gap in the market, then the patent of that technology has to be step number one.
There are very few billionaires who refuse to admit that big investment strategies are a risk. Acknowledging this fact from the outset is essential for those people hoping to create their own path as an entrepreneur. Especially with ventures that are floated on the stock exchange, it is impossible to engage any form of guarantee. By approaching this domain with a healthy dose of skepticism, participants are able to decide when to hold their hand and when to cash in their chips for the big win.
A backup source of revenue with a parachute is the type of insurance that billionaires swear by. Although there are some exceptions to the rule with entrepreneurs gambling big on their entire savings, the best strategy is to have a cushion in place for at least 6 months. This will allow participants to reduce their stress level, to cover operational costs and give them the breathing room to plan strategically and look for new opportunities.
There is a consistent theme that exists along the line with billionaires regardless of their age, ethnicity, gender or public status. They have found strategies that allow them to minimize their risks and leap onto opportunities when they present themselves. Plenty of them have been given a head start, but applying a large dose of commonsense and insurance has given them the platform to make aggressive investment moves without seeing the whole deck of cards collapse.