7 Early Money Moves Billionaires Make To Put Them on the Road to Riches
Written by
Nicole Spector
Edited by
Chris Cluff
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As you may have figured out by now, becoming a billionaire from scratch isn’t exactly easy. It takes everything it takes to become a millionaire — but on steroids: serious grit, passionate entrepreneurialism, patience and extreme financial savviness.
Billionaires are also pretty rare: As of 2022, there were 3,194 billionaires worldwide, according to Statista. That’s significantly less than 1% of the U.S. population alone.
Recognizing just how unlikely it is to become a billionaire could be quite discouraging; but, even if it’s improbable, reaching billionaire status is still a worthy ambition. At the very least, taking steps to get there can incentivize you to be smarter with your money and bolder with your life. But it’s best to start sooner than later.
Let’s look at seven early money moves billionaires make to put them on the road to riches. It’s worth noting that these money moves don’t only happen early in the journey to uber wealth, but indeed are made all throughout their lives, ensuring their wealth for the long haul.
Taking Calculated Risks
Risk is naturally uncomfortable for many. But taking on risk is key to making billions. That said, you have to be discerning and calculating when doing so.
“Billionaires are known for taking risks and thinking outside the box, but they also understand the importance of calculating and weighing those risks before making a move,” said Evan Tunis, president of Florida Healthcare Insurance. “They don’t just jump into something blindly; instead, they carefully assess the potential gains and losses before taking action. This allows them to make strategic decisions that can lead to big payoffs.”
Consider the case of Bill Gates, who boasts a net worth of $104 billion. He took on huge risk to build Microsoft by dropping out of college to embark on his vision quest.
Diversifying Their Investments and Income Streams
A key early money move that billionaires make is diversifying their investments. Really, everyone needs to do this — not just those aspiring to become billionaires. A great example of a billionaire who exemplifies the importance of diversifying their wealth is Warren Buffett. He holds ownership in over 40 companies.
Billionaires also tend to diversify their income streams, which can be equally important for those looking to get rich.
“They understand that relying on a single source of income is risky and can limit their potential for wealth,” Tunis said. “Therefore, they invest in multiple industries, businesses and assets to create a diverse portfolio and minimize their risk. This also allows them to take advantage of different market trends and opportunities.”
Surrounding Themselves With Successful People
Birds of a feather flock together isn’t just a trite cliché, it’s a resounding truth for billionaires. They’re not ones to idly pass the time with people who aren’t also interested in tremendous success.
“The saying, ‘You are the average of the five people you spend the most time with’ holds true for many billionaires,” Tunis said. “They understand the importance of surrounding themselves with successful, ambitious and driven individuals who can motivate and inspire them to reach new levels of success. They also learn from these individuals and build valuable connections that can open doors for future opportunities.”
Staying Disciplined With Spending
You may think that if you become a billionaire, you can throw your budget out the window — but that’s a bad plan that could quickly send your net worth in a downward spiral. Just look at all of the tragic lottery winners out there who went from rags to riches and back to rags after being financially reckless.
“Billionaires are not known for their excessive spending on luxury items or frivolous purchases,” Tunis said. “Instead, they understand the importance of staying disciplined with their spending and living within their means. This allows them to save and invest more, which can ultimately lead to greater wealth in the long run.”
Again, take Buffett as an example: He still lives in the same modest home in Omaha that he bought in 1958.
Adaptability and Changing With the Times
Billionaires don’t get nostalgic and wrapped up in ideas and practices that are stuck in the past. They move forward and evolve with the times.
“Jeff Bezos, the founder of Amazon, exemplifies the impact of visionary investing and adaptability,” said Jeff Rose, CFP, founder of Good Financial Cents. “Bezos expanded Amazon [from an online bookstore] into an e-commerce titan, navigating through various market changes and adapting his business model to meet evolving consumer needs. His foresight and willingness to diversify Amazon’s offerings (like introducing Amazon Web Services) have been crucial in its astronomical growth and his wealth accumulation.”
Seizing the Day
Carpe diem! Billionaires don’t just sit around waiting for something great to happen. They recognize and jump on opportunities to build wealth and succeed.
“Steve Ballmer, former CEO of Microsoft, showcases the significance of recognizing and seizing opportunities,” Rose said. “Ballmer joined Microsoft as its 30th employee, even dropping out of Stanford’s MBA program to do so. His early involvement in the tech giant and subsequent acquisition of company shares were pivotal. Ballmer was not only employee No. 30 but also became the company’s largest individual shareholder, illustrating the potential wealth-building power of equity ownership in a burgeoning company.”
Investing in Themselves — and Building a Life Around Learning
Investing in yourself doesn’t just mean spending money (though that is an aspect, particularly as it applies to education), it also means dedicating yourself to a life of learning and self-improvement.
“For most successful individuals, education doesn’t end with a college degree,” Tunis said. “They constantly seek out new skills and knowledge to stay ahead of the game. From reading books, attending seminars and taking courses, billionaires make self-improvement a top priority.”
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