Ahh, to be a billionaire. How exciting would life be? Flying on private jets. Taking weekend trips to one of your many vacation homes. And maybe the best part, not having to wake up to a stupid alarm clock!! If you want to know how to reach this lavish lifestyle, then I have good news for you. Below you will find 3 overlooked secrets for how to become a billionaire.
You’re not going to find tips like “spend less than you earn” or “make sure you pick the right investments”, though these are important. The tips I am telling you about below are off the beaten path as they say. Overlooked by most and ignored by the cheapskates of the world. Let’s get started.
3 Secrets For How To Become A Billionaire
#1. Buy Quality Items
One of the keys for how to become a billionaire is to spend your money wisely. Yes, you can spend your money. You don’t have to save every last penny. But when you do spend, spend it wisely.
Some might think this means to buy the lowest priced items they can find. After all, if you can save $10 on something, it is a good deal right? Wrong.
You want to buy quality. Focus more on quality than the price. In fact, I encourage you to spend more for items that are high quality over those that are poor quality.
For example, when I bought my first house, I ran out to Walmart to buy the things a guy needs in his first house. Things like bath mats. Being the frugal guy that I am, I looked for the set that was going to cost me the least. I found a set (a bath mat and one for the toilet) for a whopping $6. I hit the jackpot.
Fast forward a few months and I was cleaning my house (yes, some guys actually do clean). I threw my bath mats into the washer and then the dryer. When I pulled them out of the dryer, the rubber backing was shredded to bits!
So, I went to Walmart and bought another set for $6. Not surprisingly, a few months later, the same thing happened again. This is when I had my moment of clarity. Instead of spending $6 every 4 months for a new set of bath mats, why not just spend $30 on a set that is actually going to last me?
The math made it obvious. A new set every 4 months at $6 a shot is $18 a year. If I could have the $30 mats last a year and a half I would come out ahead. So I bought the more expensive mats.
After 3 years, the more expensive mats were still in excellent shape.
The point is that you shouldn’t focus on the price alone. Make sure you look into the quality as well.
This goes for everything you buy too. Cars, household items, clothes, etc. In fact, I made the same mistake buying cheap t-shirts too.
It’s OK to spend more on something as long as it is going to last you a long time.
#2. Take Care Of Them
The next trick to becoming a billionaire is to take care of these high quality items you buy. When you do this, you ensure that you get the maximum use out of them. In fact, you might even be able to get more use out of them than you think.
Here’s an example of what I mean. I take care of my car. When I graduated college in 2001, I was driving a 1990 Honda Accord with 100,000 miles on it. I made it a point to wash and wax it and vacuum the inside on a regular basis.
I also made sure to change the oil as Honda recommended as well as perform other scheduled maintenance. The car ran great and when people would see it, they assumed it had very low miles just because of how good it looked. When I told them it had over 100,000 miles they were blown away.
I ended up keeping that car for a few more years and then selling it. It had close to 175,000 miles on it by then.
The key here is to learn how to take care of things and then make sure you follow those instructions. If certain items of clothing need to be dry-cleaned, get them dry-cleaned. Give your house a thorough spring cleaning every year.
The more care you take in your possessions, the longer they will last you. This means that you will end up saving money in the long run. Here is a great list of how long you can expect certain things around your house to last.
#3. Keep Them For A Long Time
Even if you buy quality items and take care of them, you have to keep them for a long time, otherwise the first 2 points are worthless. The longer you can keep things, the better your finances will be.
A great example of this is with cars. Do you buy a car every few years? Could you survive with a car for 8 years? Maybe 12? Modern cars can easily last this long if you buy quality and take care of them. Just look at my previous example above.
In fact, I have a better story. In college I was driving a 1986 Honda Accord. It had close to 200,000 miles on it. I would drive 400 miles across the state to go to college every year and drive back home for holidays.
I sold that car with 250,000 miles on it to an older man in town. For the next 5 years, I saw him driving it all over town.
Don’t fall victim to trends or needing the latest and greatest. You can get by fine with your iPhone 5. You don’t need the house with the extra 3,000 square feet of room.
Be happy with what you have and only buy new when you truly need to. The savings from doing this will add up greatly over time.
There are 3 basic steps for how to become a billionaire.
If you want to become a billionaire, there are lots of things you can do. While it might not seem like a first choice to follow these tips, they pay off handsomely in the long run. This is because the better you take care of quality items and the longer you keep them, the lower your expenses will be.
The less money you have going out means the more money staying in your pocket and growing (assuming you invest it) and getting you that much closer to being a billionaire.