What billionaires from the top ten of the Forbes ranking advise. How to be a billionaire What to do to become a millionaire
John Rockefeller is the world's first dollar billionaire. Rockefeller contributed $2,000 to the start-up capital of his first business. Of these, I borrowed $1,200 from my father. And in 1937, when Rockefeller died, his capital was estimated at $1.4 billion. In today's prices this is 318 billion. For comparison, the fortune of the world's richest person, Amazon founder Jeff Bezos, is estimated at $149.8 billion.
Rockefeller began his journey in the oil business, in which he made his main capital, with a small company that sold kerosene wholesale. And when Rockefeller retired at the age of 55, his Standard Oil Company controlled up to 95% of the US oil industry, 70% of the world's proven oil fields and the entire production chain - from oil production to the delivery of kerosene to retail customers - almost all over the world.
Let's figure out what helped Rockefeller make billions.
Lesson 1. Monitor the movement of money
At the age of seven, Rockefeller earned his first money on a neighbor's farm, whom he helped collect potatoes and raise rabbits. Then, on the advice of his mother, he made the first entry in the ledger, where he reflected down to the last cent how much he received and for what and what he spent on. These analogues of the modern cash flow statement (CDS), one of the tools that are used for business, he kept until his death, and he lived for 97 years.
Rockefeller's biographers like to mention that he grew up in a poor family. Information on how much his father earned could not be found. It is known for sure: the father of the future billionaire was a traveling salesman who traveled a lot around the country. And while the head of the family was away, Rockefeller’s mother had to save. Hence the habit of counting every cent, which she instilled in her children.
Since childhood, John has seen how keeping track of money helps to increase it. His parents wanted him to go to university, but Rockefeller preferred a commercial college and accounting courses. And when, after studying, he got a job as an assistant accountant, his love for numbers was quickly noticed and appreciated. None of Rockefeller's colleagues liked to tinker with completed periods and projects. And his eyes burned from such tasks.
Rockefeller's starting salary was $17 a month. From the second month - already 25 dollars. A year later he was a manager with a salary of $800 a year.
The Rockefeller heirs continue to keep the tradition of counting every cent from early childhood. Rockefeller taught this to his own children, who taught theirs, and so on.
I also have one, but in the form of an electronic tablet. I started leading when I was over 40; as a child there was no one to give me advice. But better late than never. It's a routine, but it really helps you manage your money wisely.
Lesson 2. Don’t be afraid to borrow
Entrepreneurs view borrowed money as an evil from which it is better to stay away. The example of Rockefeller shows - in vain.
If Rockefeller had not taken the amount needed from his father to enter the business, he most likely would have worked for hire all his life.
Borrowed funds were a constant companion of Rockefeller's business. He preferred to sell shares to another investor, even when his own funds were sufficient. I also invested my own money, but also kept it as a reserve. And even if there were no investors, he took upon himself the financing of the next project entirely.
Rockefeller's first business was a small logistics company. Rockefeller scored $0.5 million in orders in the first year. There was soon not enough money to provide for them. Already owing a lot of money to his father, who gave him not just a loan, but at 10% per annum, Rockefeller borrowed the missing amounts wherever he could. It wasn't easy, but he managed it.
It is believed that only financially illiterate people are not afraid. And then - before the first call from the collectors. The difference between them and Rockefeller is that he borrowed wisely.
Lesson 3. Fulfill obligations
Rockefeller was always careful in fulfilling his obligations, including financial ones. No matter how difficult it was, and in the first years of doing business these difficulties were constant, I always found the right amount by the right date.
In his memoirs “How I Made $500,000,000,” Rockefeller recalls how his father came to his office for another loan payment at the most inopportune time and insisted that the money was really needed right now. Rockefeller himself finds it difficult to say whether this happened by chance or whether his father deliberately intended it for educational reasons. In any case, each creditor, including his own father, received from him what was due and when it was due.
Over time, at one word from Rockefeller, bankers fearlessly raked out all the contents of the safes for him. His reputation in financial matters was the best guarantee.
Lesson 4. Know the cost of every management decision
Rockefeller was able to borrow without fear and fulfill his obligations regularly because he did not act at random. Every decision was scrupulously calculated in advance. If you borrowed money, then take into account when and how much you will have to repay, how you can pay it back, and how much you will earn from the borrowed funds. If you invested your own money, you calculated when and how much it would increase.
Rockefeller invested millions of dollars in his enterprises. If an investment showed an increase in production volumes and/or a reduction in costs, which was converted into increased profits, Rockefeller did not skimp.
Rockefeller was the first in the United States to stop transporting oil in wooden barrels on horseback and began transporting oil in tanks by rail, driving entire trains across the country. He was the first to stop skimping on the safety of oil refineries when he realized the damage caused by constant fires. And the first American oil refineries were literally barns. Oil workers believed: oil is a profitable business, but soon it will all be pumped out. And therefore they saw no point in investing in infrastructure.
One of Rockefeller's oil plants in the USA
When Rockefeller began exporting oil, devices were needed to quickly transfer it from tanks to tankers. Rockefeller, at his own expense, equipped the necessary railway stations with them. At first glance, it looked like a gift to railway workers. But this, in addition to the volume of transportation, became an argument for reducing the tariff and allowed Rockefeller to transport oil on rails three times cheaper than its competitors.
Rockefeller also owned several iron mines. When he realized that it was more profitable to transport ore to blast furnaces and ports on ships than by train, he built his own fleet from scratch.
Rockefeller's partners considered his next innovations too much and did not want to invest in them. In such cases he said: “Okay! I will invest the money alone, but all the profits will be mine.” After this, the partners immediately became accommodating. Everyone knew that since Rockefeller was ready to invest alone, there would definitely be a profit.
Lesson 5. Engage professionals
What helped Rockefeller in life and business was that he loved to tinker with numbers. But you don’t have to love - that’s okay. It is enough to attract a person who loves to your team or outsource.
British millionaire Richard Branson loved what today is commonly called hype, but hated numbers. But in his youth he had a business partner who loved to tinker with numbers. By the time Branson’s business had grown enough, the owner, realizing the importance of management accounting, remembered his former partner and instructed him to take charge of the numbers.
The founder of the McDonald's empire, Ray Kroc, spent his entire life in sales and understood only them. This allowed him to see a promising product in a small roadhouse and make this product a symbol of America. But a person from his team, who rummaged around in finance, saw and suggested to him another promising direction: not to sell a naked franchise, but first to rent and subsequently buy plots of land with premises for a restaurant and rent them out to franchisees. This decision simultaneously increased the revenue, profit and capitalization of McDonald's significantly. In 1974, Kroc himself said at a meeting with students: “My business is not hamburgers. My business is real estate."
Rockefeller himself preferred not to delve into what he did not understand, but to listen to professionals. Sometimes this approach failed. This was the case with the shares of the iron mines that he bought in the early 1890s: specialists promised a bonanza, but the mines turned out to be unprofitable and were on the verge of bankruptcy.
To find out what was going wrong, Rockefeller found a specialist who understood finance. His name was Frederick Gats. Gats presented a report, thanks to which Rockefeller understood what was going on and how to save the situation. He instructed Gats to bring order to the mines, and soon they began to make a profit. Gats later became Rockefeller's right-hand man.
When Rockefeller decided to build his own fleet, he turned to the owner of a shipping company for help. He transported the ore himself and was not interested in helping his competitor. Rockefeller's speech sounded something like this: “I understand you. But I will transport ore only on my ships. I'll build them anyway, you won't earn anything from transporting my ore. But I suggest you earn a commission for having ships built for me under your control. I contacted you because you are a professional and an honest person. And I won’t skimp on commissions.” The shipowner left Rockefeller's house with a contract for $3 million.
Lesson 6. Don’t be afraid of negativity in reports
When Rockefeller was still working as an accountant, he once walked into the office of his boss's business partner. And he just received a huge invoice from the supplier with many items. The boss’s partner looked longingly at the columns of numbers and doomedly threw the paper to the accountant: “Pay.”
“And I would tell the accountant: “Check and tell me if everything is correct, and only then pay,” Rockefeller decided.
In his memoirs, Rockefeller is surprised that smart and sensible people were afraid to look at the reports once again. Entrepreneurs experienced a particularly panicky fear of it when their business had problems. Rockefeller believed: it is when something is wrong in business that the reporting needs to be studied even more closely.
Lesson 7. Don't be greedy
Rockefeller spared no expense not only on investments. His company, Standard Oil, paid dividends four times a year. Their total amount was $40 million - exactly 40% of the company's authorized capital. Rockefeller received 3 million of this money.
Rockefeller offered to pay the owners of the oil companies he bought in part or in full with shares. With the consent of the workers, he gave them wages in shares. All investors received company shares. Stable and high income for its shareholders was guaranteed.
This is the set of rules by which Rockefeller achieved success. As you can easily see, there is nothing supernatural about them.
Why do some people become billionaires, while others, despite all their efforts, fail to get rich? The fact is that billionaires have a number of unique habits and principles, thanks to which they were able to achieve their goals. They will be discussed below.
1. Billionaires never rest on their laurels.
Most of them would agree with the belief that people who have a real passion are more likely to succeed. Most often, the basis of wealth is not the desire to get rich, but the desire to fulfill your dream.
And such people do not stop without realizing their plans, because they have firm confidence in success.
Each of the rich people is engaged in the business that he likes - technology, sports, construction, etc.
2. They work harder than others, but still enjoy life.
In fact, billionaires work a lot, usually more than other people.
For example, Elon Musk works 80-100 hours a week, unlike ordinary workers who work an average of 40 hours a week. When Mark Cuban was studying programming, he worked for seven years without taking a vacation. This dedication has paid off well and today he truly enjoys his life.
However, working in such a busy schedule, billionaires find time for entertainment and rest, necessary to recuperate and conquer new heights.
3. Billionaires keep it simple
They don't set difficult goals for themselves.
For example, Henry Ford dreamed of creating a car that was accessible to everyone. Mark Zuckerberg's goal was to bring people together. Jeff Bezos' business (Amazon) began with a regular online bookstore.
When a future billionaire states his goal, it sounds very simple. When drawing up a plan to achieve it, he also tries to make it simple and understandable, not overloaded with details. After all, a simple plan is easier to implement, it is easier to gather a team of like-minded people to implement it and focus efforts on achieving the main goal.
4. They rely on other people for help.
Billionaires are aware that they are not the smartest people in the world, and that they cannot implement everything they plan on their own. Therefore, they do not consider it shameful to resort to the help of people who understand some issues better than they do. This opens up new opportunities and helps rich people master new knowledge.
At the same time, billionaires try to build and maintain good relationships with everyone they rely on: managers, assistants, producers, etc.
5. Billionaires value time
They try to organize work in such a way that all the necessary information is prepared for them by their subordinates, so as not to waste their time searching for it.
Billionaires know the value of time very well. And having the necessary information ready, they can quickly make the necessary calculations and make decisions more quickly. This allows them to save time, effort and money, and concentrate them on solving the main problem.
6. They try to make the world a better place.
Many billionaires truly want to make life better on our planet. By developing new technologies or clean energy, they help create a cleaner, more reliable world in the future.
If we take more mundane things, then billionaires always try to improve the surrounding reality with the help of simple habits, be it the habit of making the bed, sorting garbage, etc. This is how they daily make living conditions more comfortable for themselves and for those around them.
7. They are risk takers but don't gamble.
Studying the behavior of rich and poor people, scientists found that 75% of poor people play the lottery every week, believing that only luck will help them cope with financial difficulties.
The rich, in turn, bet on the opportunities they have. Of course, they also like to take risks, but each of their risks is always carefully calculated. Although some of their ideas seem crazy at first glance, however, such risks make them billionaires.
8. They have good manners
Self-made billionaires place great importance on etiquette and are careful about their manners.
This is how every person who wants to succeed should behave. Moreover, this applies not only to rules of conduct, but also to clothing, table etiquette and attendance at important events. This is how a person who has achieved success can thank the people who helped him in this and attract new investors, which means taking the next steps towards increasing his wealth.
Get rich quick schemes are just that, schemes. No matter how much we want it, none of us, an ordinary person with an average financial income, will be included in the list of the richest people in the world overnight.
So how did the rich make their fortunes?
Some are born with this status, and some are simply lucky. These people have advantages that most of us will never have. But if you ask some of the world's self-made billionaires how they got there, most will tell you that you don't have to be too smart to make a fortune. They also didn't use some top secret formula that you and I don't know about. Instead, they often attribute their success to willpower, tenacity, and perseverance. This advice is good, but it's a little vague. We wanted to find as much information as possible and find out how you can get rich quickly. Here are helpful tips from seven incredibly successful people in the world. And if you start following their recommendations, you can add extra zeros to your bank account balance.
Save your money
Entrepreneur and Dallas Mavericks owner Mark Cuban opens the list. At the moment, his net worth is $3.3 billion. He built his wealth from scratch and now doesn't hesitate to share his advice with those hoping to emulate his success. One Cuban tip on how to get rich: Don't waste your money on stupid things. Here is one of the tips he gave in his blog “How to Become Rich”: “Save your finances. Save as much money as you can. Every penny you can put into a piggy bank. Drink water instead of coffee. Instead of going to McDonald's, eat a cheese sandwich. Forget about credit cards. If you use a credit card, it means you don't want to be rich. The first step to wealth is discipline."
Go against your own gut
Warren Edward Buffett, known as the Oracle of Omaha, is a fountain of wisdom, which is not surprising considering he is the third richest person in the world with a net worth of $80.5 billion. Warren Buffett's conscientious approach to investing was the key to his success. He made his fortune by betting on companies that were passed up by other investors. Here's how he summed up this approach in his book Buffett: The Making of an American Capitalist: “I'll tell you the secret to getting rich on Wall Street. Close the doors. Try to be greedy when others are afraid and confused, and be afraid when other people become greedy.”
Don't be timid
Shy individuals and quiet people are not good candidates for billionaire status. If you want to get rich, you need to be brave enough to take risks, even if all your ideas seem a little crazy. This risk-taking approach has paid off in a big way for Eli Broad, founder of KB Home, as he is worth $7.1 billion. Back in the mid-1950s, Broad got the idea into his head that he could make money by building houses without basements, making them more affordable for more people. The fact that he had no experience in construction or real estate did not stop him from pursuing his idea.
In 2006, in his commencement speech to graduates of UCLA's school of arts and architecture, he said: “No one has ever made a million dollars by being too careful or too smart. I was 22 years old, married, and had this crazy idea that I should give up my career and become a builder. I knew nothing about building houses. Sometimes the craziest ideas push us to success and, of course, to wealth.”
Do something on your own
Relying on others to succeed is a recipe for disaster. At least that's the lesson Forrest Mars Jr. learned during his time at Mars Inc (his father's candy business). At one time, Mars took over the entire chocolate business from its competitor Hershey’s. After leaving the family business (he was worth $4 billion after his death in 1999), he moved to Europe, worked in a candy factory and learned how to make his own chocolate. Then he invented the Mars bar. After that, he returned to the family business, and it is now the sixth largest private company in the United States.
He said this: “If you want to get rich, you must know how to make a product. And you shouldn’t hire certain people to make a product and you become rich.” In his book Business Builders in Sweets and Treats, he also made it clear that he wasn't just the guy who invented candy bars: “I'm not a candy bar maker. I created an entire empire."
Don't miss out on opportunities
"Success may seem like a lucky coincidence, but it's really a matter of recognizing when you can take advantage of a great opportunity," says Eric Schmidt, former CEO and current executive chairman of Google ($13.1 billion). whatever you want." Schmidt didn't invent Google, but he was smart enough to accept their job offer in 2001. A big part of success is simply being in the right place at the right time. So he said in his commencement address at Carnegie Mellon University in 2009.
Take care of yourself
Justine Musk is not a billionaire, but she has a pretty good idea of how to make big money. The ex-wife of Tesla entrepreneur and inventor Elon Musk ($21 billion) has seen what she calls "extreme success" and knows that getting to that level of wealth isn't easy. To do this, you need to be not only obsessed, but also in excellent physical shape. She says this: “It helps maintain superhuman energy and stamina. If nature has not endowed you with good physical shape, then do something to get your body in order. In your life, there will certainly be jet lag, mental fatigue, loneliness, meaningless meetings, serious failures, family drama, problems with a close friend whom you rarely see, and much more. Try to be in good physical shape. It pays off."
Do what you love
Most billionaires agree that passion is important if you're trying to achieve big things. Some will say that the most important thing is to focus on what you love and then allow yourself to succeed rather than focusing on money first. Jim Koch, founder of Boston Beer Co., said it helped turn him into a billionaire. Before craft beer became a national passion, Koch (the son of a brewer) decided to dedicate himself to creating quality beer that was simply not available in America at the time. His quirky passion for the drink paid off, but he didn't get rich. As he explained in an interview with Business Insider: "The biggest thing I remind all people is to only pursue what you love, because a small business is going to be very demanding of your time, your energy, it's just eating up your life." And if you do what you love, you enjoy it and can even get rich. If you do your business for wealth, you will lose your heart. I tell everyone that wealth is the biggest trap in life. I advise everyone to do what will make a person happy.”
While our compatriots continue to worry about exchange rates and think about how to survive the crisis, we decided to think about something pleasant. For example, about how young billionaires become. When you read the text and successfully use one of the methods, write us a text about it in the “Tested on yourself” section, for old times’ sake. Moreover, Arriva was your friend even before your fortune exceeded a billion. That is, right now.
Get it from your parents
This method is not suitable for almost anyone except a few lucky guys. The dream of a wizard in a blue helicopter who will fly in and give free gifts is ineradicable in man! The main thing is that it does not interfere with your actions, since you were not born the Chinese Perenna Kay or Prince Albert von Thurn und Taxis.
Prince Albert von Thurn und Taxis, at 30, is the proud owner of a fortune estimated at $3.8 billion. Albert inherited this enormous wealth at the age of seven after the death of his father. Forbes wrote about a child billionaire, the owner of breweries, mills, a bank and 30 thousand hectares of land, although this could hardly console a child who had lost his dad. But now Albert von Thurn und Taxis gives the impression of being quite happy with life. He lives in his family's castle in Bavaria and participates in auto racing.
Chinese Perenna Kay, at 24 years old, has an impressive net worth of $1.3 billion. And all because, according to documents, she owns 85% of Logan Property Holdings through various companies and a family trust. Her father helped Perenna become the youngest owner of a fortune of more than a billion. Ji Haipeng is Chairman of the Board of Directors and CEO of Logan Property Holdings. However, it's too early to joke about the spoiled girl: Kay received a bachelor's degree in economics and finance from the University of London and will probably move on to our next category.
Continue the dynasty (and don't screw it up)
Just being born into a wealthy family is little merit. But successfully continuing the work of his father and grandfather, as Anton Katrein Jr. does at the age of 29, is already more difficult. The Kathrein-Werke company was founded by Anton's grandfather in 1919. At one time, it was the first to produce car antennas. Then Kathrein-Werke came under the management of Anton Kathrein Sr. And now, when the founder’s grandson has become the director, it already produces not only automobiles, but also radio and television antennas, satellite and terrestrial communication systems, equipment for cable operators, antenna systems and electronic components for cellular communications. Its young director has $1.35 billion and a colossal responsibility to his older relatives.
Chinese woman Yang Huiyan has a shorter dynasty, but the size of the wealth of the richest woman in China is all the more impressive - almost $7 billion. Her father gave her 70% of the shares of the Country Garden company, which is engaged in the construction of luxury housing, and appointed her vice president. He himself started as a farmer, then became a builder, and in 1997 he registered a company that made him a billionaire. Father Jan is alive and well and manages the company's affairs together with his daughter.
Help talented people
Eduardo Saverin became Facebook's first investor, brought Zuckerberg together with future company president Sean Parker, and helped the social network move to Palo Alto. Then, however, Zuckerberg and Saverin quarreled, and a dark story came out, as a result of which Saverin had to sue his former friend for his stake. But we don’t have to worry about him, the guy wasn’t left without pants. Now Eduardo, who just turned 31, lives in Singapore and invests money in new projects. The latest successful deal is the sale of the mobile video service Qwiki to the Internet giant Yahoo! for 50 million dollars. And the total wealth of the sociable Saverin is $4.1 billion.
Make something that everyone loves (for example, Facebook)
Facebook celebrated its 10th anniversary last year, and its founder Mark Zuckerberg is celebrating his 30th birthday this year with a net worth of $28.5 billion. A combination of a great idea, good execution, business acumen, hard work and luck - all the stars aligned for this guy ten years ago. Interestingly, when he was in college, he was called to work at Microsoft. Headhunters became interested in a talented guy who wrote a program called Synapse, which allowed the computer to independently compose a sequence of musical hits for its owner. Anyone else would have been over the moon, but Mark didn't want to build a career in a huge organization. He is one of the few who will never regret turning down such an offer.
Try until you succeed
And yet, even successfully founding a social network at the age of 19 is not as cool as suffering a series of failures on the way to success. Dropbox provided its co-founder and CEO Drew Houston with a fortune of 1.2 billion, but this successful project is already the sixth for Houston. And although none of the previous ones brought him the first billion, Drew did not despair and continued to work. By the way, the story of Drew Houston is also a story of friendship, because his university friend Arash Ferdowsi helped him create Dropbox.
When Drew spoke to graduates of the Massachusetts Institute of Technology a year and a half ago, talking about his path to success and giving advice for the future, he gave two more excellent examples of “losers”: “Bill Gates’ first company made software for traffic lights. Steve Jobs's first company made devices that allowed you to make free calls using telephones. Both of these endeavors failed, but it's hard to imagine Gates or Jobs being so upset by these failures that they quit. And this is exactly what I think is very cool about my new life after graduating from university. You no longer have to worry about how many times you were wrong. From now on, failures don’t mean anything - you only need to be right once.”
If you don’t have billionaire parents and an idea for a brilliant startup, start small: for example, master one of them and download a couple for yourself.
