One path to Billions

I was once told at a business seminar I had attended what it takes to become a billionaire. Surely, there are many ways that one can amass the fortune necessary to become obscenely rich, but here is one systematic way to become a billionaire.

From the diagram, the first step is to own a business, most billionaires today own businesses. Think Bill Gates (Microsoft) and Ted Turner (CNN). In business, your potential income will be very high but in most cases it is not very stable. The income from business would go up and down depending on the current prevailing economy. So what can you do stabilize this roller coasting income? You go to the next step.

In step 2, you invest your excess cash in real estate. Most billionaires own at least a few properties. This is because owning real estate allows us to stabilize our income. It is the rental income from such properties that allows for our income to be stable. This is because rental income is very predictable, passive and consistent. After all it is a basic human need to have shelter, a need which is second only to Food and Drink and let’s face it, some people just can’t afford to own property or be bothered to own it. Nonetheless, in order for us to become a billionaire through real estate alone would take us almost forever (although I’m not saying that it can’t be done this way, it’s just that is would take a hell of a long time), which is why you need to proceed to step 3.

When you have reached this stage, it is assumed that you now have more that enough cashflow every month coming in to sustain your current lifestyle. For example,let’s say that your monthly rental income is RM100,000. Now let’s say you only use RM20,000 to maintain your current lifestyle while the other RM80,000 is left alone. Since rental income is predictable, passive and consistent, we know that the following month will bring in another RM100,000 and another spare RM80,000. So what do you do? Here’s the fun part, you gamble it all on the world financial markets (i.e. stock market, global commodities, forex etc.). Investing in the world financial markets allows us maximum leverage to make a lot of money with very little cash. And of course, since that money that you will be using is money that you can afford to lose, the risk element is all but almost non-existent. Eventually you would hit the jack pot and then you will achieve your dream of owning at least RM1 billion in cash!!!

Be warned though, you still need to invest time and effort equip yourself with the necessary knowledge, skills and determination if you really dream of becoming obscenely rich one day. At least now you can have some idea of how to become a billionaire one day.