I’d like to express my gratitude to CFT. You’ve taught me so much about wealth building and controlling risks to reach my retirement goals. You’ve changed my mindset and opened up amazing opportunities for me. My future is exciting.
How to Grow True Wealth Like a Billionaire
It doesn’t matter the asset class…stocks, bonds, mutual or index funds, real estate, mortgages, gold…none of it. Investing won’t make you a billionaire or even a multi-millionaire. If you want to learn how to grow true wealth like a billionaire, keep reading.
They all did ONE thing and its one thing that you and I will likely never be able to do. Before I explain what they did, I want to make a point. Many people look to billionaires to see what they are doing with their money to get clues into what they should do with their own.
New best selling books are released every year analyzing what the uber-wealthy are investing in.
Every wealth manager or stock broker use at least one billionaire or major endowment fund to prove that their investing methodology is sound and that it is the one you should be following.
The Buffett Effect
In fact, one Billionaire has so much clout, that Wall Street has a term named after the effect this one man has on the entire market. The Buffett Effect.
So if Wall Street, brokers, and best selling authors listen to them, why do I ignore them (and why should you do the same?)
It’s because of what I call the Iceberg Principle.
What the markets are chasing and the media woo over is merely what we can see sticking out above the surface. The real wealth of the Billionaires of the world sits below the surface of the water. Just like the mass of an iceberg.
A mentor of mine always tells me, “to get powerful answers, you need to ask powerful questions.”
If you want to be a Billionaire (or even just a multimillionaire) you need to be asking better questions than what are they doing with their money NOW.
The better question is “What did they do to create their wealth in the first place.”
And the answer is not “Investing.”
Which brings us back to the topic of this post.
How does one become a Billionaire?
The first rule of becoming wealthy is you have to focus on MAKING money first.
In today’s world, investing is thought of as giving your money to someone else to generate a return.
This is not what Billionaires did. In fact, they did the opposite.
Billionaires first built a successful business. In every case, even the “investors” like Warren Buffett, are business owners first.
And they span every industry from technology to finance and banking to retail and even candy. But the common thread is they built massively successful businesses.
After building a successful business, they then seek “investors” to give them even more money and this is how they become Billionaires.
How To Become A Billionaire
The critical element required to be a Billionaire is access to other people’s money (OPM). In the case of Billionaires, they found access to the Holy Grail of OPM, the Federal Reserve printing press.
Either directly in the form of those Billionaires who are in banking and finance, or indirectly like Bezos and Zuckerburg who took their companies public, in each case they accessed Billions from other investors.
Are you seeing this? Investors do not make Billions for themselves. Rather, it’s the investors that make OTHER PEOPLE Billionaires.
The money flows from investors to Billionaires. Not the other way around.
So you want to be a Billionaire? Stop investing.
Ok, either find a way to head up a hedge fund, bank or venture capital fund with hundreds of millions under management or be the next MuleSoft.
But if you expect to be a Billionaire by maxing out 401(k)s, diversifying in index funds, or investing in real estate, good luck.
So, if you don’t think you have what it takes to be a Billionaire, then what should you do?
Step One | Step Two
One, start a business. Be an entrepreneur. Focus on MAKING MONEY FIRST. Compounding is fun and all but it takes a VERY LONG TIME.
Now you don’t have to go all Jerry McGuire on me here.
In today’s world it is easier than ever to start a business to make more money, even if you never intend to quit your job.
I met a guy the other day who publishes a blog and runs a small podcast in just a few hours a week. He is making six figures doing it while still working full time as a software engineer.
If he had tried to invest in index funds in order to make six figures a year, he would need over $2,000,000 in capital.
Two, you need access to other people’s money (OPM). If you don’t have access to the federal reserve system of printing your own money, then you need to get your hands on someone else’s.
The easiest, least risky way to do this is to buy real estate. It is the only asset class that is directly subsidized by the federal government. So this is your one opportunity to actually benefit from all the money printing that has been going on for the last few decades.
And if you do it right, while it won’t make you a billionaire, it could put you on the path to financial independence in under 10 years.
This is the exact process we coach clients on every day at Cash Flow Tactics. We are not money managers because we don’t believe in that. What we do is help our clients MAKE more money, KEEP more money, then use the same principles Billionaires use to GROW their money.
We have helped thousands be on a path to be financially independent in 10 years or less. If you want to know how you can too,