5 Things Billionaires Always Do to Stay Wealthy
Data shows that 88% of financially successful people read for at least 30 minutes each day.
It’s a no brainer that there are things billionaires do differently that makes them super-rich. Recent data reveals that Africa’s 18 billionaires are worth an estimated $84.9 billion. These individuals, besides strategic investments, made their wealth from various sectors.
The banking and finance sector is the most likely path to building a billion-dollar fortune. This is because the number of billionaires in the industry has increased by 50% in the last year, virtually doubling from two years earlier.
Although they all have unique money habits and ways of making their wealth, one thing is common to all of them, they’ve made billions. Let’s dive into the things billionaires always do to stay wealthy.
Billionaires are always learning new things. Data shows that 88% of financially successful people read for at least 30 minutes each day. Since learning is infinite, they garner more knowledge, thus expanding their business acumen, translating to more wealth.
Since knowledge gives life to any business, they are ever reading and learning. Aliko Dangote says before he ventures into a new business, he ensures that he knows about it. And clearly, it’s worked for the billionaire.
Warren Buffet also said, “The power of compounded interest begins to yield results after a few years”. And the same can be said for knowledge.
Save first, spend later
Although they have the money to afford any extravagant thing, billionaires still spend their money prudently. According to Warren Buffett, if you acquire items you don’t need, you’ll eventually sell stuff you do need. This is why most wealthy individuals save first and spend afterwards.
So quit complaining about your inability to save and your lack of money. The practice of saving first and spending afterwards is the key to saving right. You can imbibe this by setting away a portion of your monthly income for savings every month.
Just remember to be disciplined and stick to the routine. Also, instead of increasing your spending when your income improves, increase the percentage of your income that goes toward savings.
Albert Einstein said that interest is the eighth wonder of the universe, and those who comprehend it earn it; those who do not pay for it. This is something about investment, but some people are not privy to this fact.
It is a wealth multiplier that wealthy people use. To Warren Buffet, It is core to his investments. This is because it is one of the most potent weapons, and every successful person has used it.
Compounding enhances the value of your money by adding interest earned back to the principal, resulting in exponentially higher returns. This is especially beneficial in the long run. For instance, Femi Otedola’s acquisition of the largest share in the First bank Holdings Plc in late 2021 made a profit of N400 million in the same month.
Getting the most out of debt
Debt is an instrument used by wealthy individuals to build wealth. They borrow money at a lower interest rate to invest in assets with higher return potential. Similarly, wealthy individuals utilise debt to buy assets that will appreciate.
They make their money work
One thing billionaires have in common is understanding how to make money work for them. They have different passive incomes, contribute to matching workplace benefits, and avoid taking on debt unless they have a compelling reason to do so.
It’s a no brainer that one of the things billionaires do differently to be super-rich is making their money work for them.
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