7 Secrets Billionaires are Using to Get Richer in 2023

Money has always been a powerful motivator for people, and becoming a billionaire is the ultimate dream for many. However, achieving this level of financial success requires much more than just hard work and determination.

The world’s billionaires have a set of secrets that they use to build and maintain their wealth. In this article, we will delve into the seven secrets billionaires are using to increase their fortune in 2023.

From investing in real estate and private equity to leveraging other people’s money, these secrets will give you insights into the mindset and strategies of the world’s wealthiest individuals. So, if you’re looking to take your financial success to the next level, read on to learn the secrets of billionaires.

Real estate will make you a millionaire, private equity will make you a billionaire

Real estate has always been a great investment, and it can make you a millionaire if you invest wisely. However, if you want to become a billionaire, you need to look beyond real estate and invest in private equity. Private equity allows you to invest in companies that are not publicly traded, giving you access to a wider range of opportunities and potentially greater returns.

One example of a billionaire who leveraged private equity is Stephen Schwarzman, co-founder and CEO of the private equity firm Blackstone Group. Schwarzman is currently worth over $27.6 billion at the time of writing. The firm manages $941 billion in assets. Schwarzman’s success in private equity has played a significant role in his rise to billionaire status.

You can’t own 100% of your business and be a billionaire

Many entrepreneurs believe that they need to own 100% of their business to be successful, but that’s not the case. Billionaires know that partnerships and collaborations are essential to building a successful business. By partnering with others, you can leverage their expertise, network, and resources to grow your business exponentially.

Despite giving up ownership in their companies, several entrepreneurs have become billionaires through their innovative ventures. For instance, Mark Zuckerberg owns only around 13% of Facebook but has a net worth of over $100 billion, thanks to the social media giant’s tremendous success. Similarly, Elon Musk, the founder of Tesla and SpaceX, has a net worth of over $200 billion, despite owning only around 20% of Tesla. Meanwhile, Larry Page and Sergey Brin, the co-founders of Google, are both billionaires, despite owning less than 6% of Alphabet, Google’s parent company. These entrepreneurs illustrate how building successful businesses and creating value for stakeholders can generate immense wealth, even if the founders’ ownership stakes are relatively small.

Your income unlocks vertically when you realise you can use other people’s money

One of the biggest secrets of billionaires is that they know how to leverage other people’s money. Instead of relying on their own funds, billionaires use other people’s money to invest and grow their wealth. Whether it’s through loans, partnerships, or investments, using other people’s money allows you to scale your wealth much faster.

Some entrepreneurs have built their fortunes by using other people’s money to fund their ventures. One example is Jeff Bezos, who founded Amazon in 1994 with the help of early investors. Bezos raised millions of dollars in funding before taking Amazon public in 1997. Another example is Sara Blakely, founder of Spanx, who initially funded her company with credit card debt before securing outside investment.

Today, Blakely is worth over $1 billion, thanks to her innovative shapewear company. Similarly, Jan Koum, co-founder of WhatsApp, used $250,000 of seed money from a former Yahoo colleague to build the messaging app. Koum later sold WhatsApp to Facebook for $19 billion, generating immense wealth for himself and his investors. These entrepreneurs demonstrate how strategic use of other people’s money can be a powerful tool for building wealth and success.

Saving $5 a day won’t make you rich

Many people believe that saving a few dollars a day is enough to become wealthy, but the reality is that it’s not. Billionaires know that to build true wealth, you need to focus on increasing your income, not just cutting expenses. While saving money is important, it’s not the key to becoming a billionaire.

For instance, if you save $5 a day for 30 years, you will have saved a total of $54,750, assuming a 5% annual return on investment. While this is a significant sum of money, it’s unlikely to make you wealthy.

In contrast, investing that $5 a day into a diversified portfolio of stocks and bonds could yield significantly greater returns over time. According to historical data, a portfolio with a mix of 60% stocks and 40% bonds has an average annual return of around 7.5%, meaning that $5 invested daily over 30 years could grow to more than $220,000. While saving is an important habit to develop, it’s important to be strategic and take calculated risks if you want to achieve significant wealth over the long-term.

The real money is made in a crisis

Finally, billionaires know that the real money is made in a crisis. While most people panic and sell their assets during a crisis, billionaires see opportunities to invest and grow their wealth. By having the right mindset and taking calculated risks, billionaires can turn a crisis into an opportunity.

Entrepreneurs who have made a lot of money during a crisis include Brian Chesky and Joe Gebbia of Airbnb, who capitalized on the 2008 financial crisis by creating a platform for affordable home-sharing, now valued at over $100 billion. Another example is Eric Yuan, founder of Zoom, whose video conferencing platform became essential during the COVID-19 pandemic, making him a billionaire. These entrepreneurs demonstrate the potential for innovative solutions to thrive during times of crisis, even as other businesses struggle.

All in all, becoming a billionaire is not an easy feat, but by following these seven secrets, you can increase your chances of achieving financial success. From investing in private equity to leveraging other people’s money, these secrets will help you build wealth and achieve your financial goals. Remember, it’s not about saving a few dollars a day; it’s about increasing your income and taking calculated risks.