Just like when it comes to consuming information I look to those in front of me on the journey to increase your net worth try to emulate them. When it comes to increasing your net worth there is no shortage of people out there to turn to.
Whether you want to be a billionaire or just retire early its largely the same process. If you want to be a billionaire there is a bit more risk and work involved but, again, the steps are largely the same.
In this post I’ll highlight a few billionaires as well as a few other successful people to uncover how they did it and how you might be able to as well.
Increase Net Worth: It Starts with the Gap
In the past I’ve already discussed why its important to track your expenses and how to calculate your net worth and its key components is and it all centers around the gap. That is, the gap between your income and your expenses. You’ll find that all of the people we will look at today took the gap and invested in it assets. Thats it. Pretty straight forward huh?
A popular blog, ESI Money, preaches growing your income and investing the gap. He’s done 100+ interview of millionaires and even summarized his findings. Again, the path they all followed was pretty much the same. The path is take the gap between income and expenses and invest it into assets.
Increase Net Worth: Billionaire Style
Here we’ll take a look at two examples of individuals who have increased their net worth into the billions. Each has their own path but ended with them being of the wealthiest people alive.
1: Mark Cuban
You probably know Mark as the owner of the Dallas Mavericks or a shark on Shark Tank. He’s had such a variety of jobs in his career (and owns a ton of businesses today). He actually had one job that took him from zero to millionaire status and then a another one that took him from millionaire to billionaire.
Each of these jobs? Company founder.
To go from zero to millionaire he started a company called MicroSolutions. It involved the selling and setup of software and eventually sold it. Next he started a website where audio could be streamed over the internet. Yahoo eventually bought them making Cuban a billionaire.
As the company founder Cuban was taking a ton of risk. With very little income he was keeping his expenses extremely low to take the gap and invest it. Of course it took a ton of skill, work and luck to sell his company but he couldn’t have done it if there wasn’t a gap between his income and expenses.
If you want to learn more about Mark and his story check out his book.
2: Warren Buffet
I know you know this guy. He’s been sitting towards the top of the world’s wealthiest people for what seems like forever. This book on him is actually one of my favorites of all time. While most people know Warren as the head of Berkshire Hathaway he actually has been at this for quite some time.
Berkshire Hathaway owns all or part of 65+ companies at this point. While that was where Warren ended up he actually started investing in the stock market looking for undervalued companies. Berkshire Hathaway was a textile mill that represented the first time that he purchased controlling share of a company. Before that he spent years and years investing in stocks he believed in.
Increase your Net Worth: Retire early/lifestyle
Here we’ll take a look at three examples of individuals who have increased their net worth substantially. I don’t know the exact figures but know they are doing well and are examples for each of us to follow.
1: Joshua Dorkin
I’m guessing you don’t know this guy but he actually is the founder and CEO of Bigger Pockets. If you aren’t aware Bigger Pockets is a website filled with all the resources someone involved with real estate would ever want. There is a forum, podcast, books, and anything else you could imagine.
Josh’s story starts out with him working night and day to build his company. He stuck with it and eventually turned it into something that, while I’ll never know the exact figure, probably allows Josh to live the life he wants to. Josh is yet another example of a founder of a company doing well.
2: Paula Pant
Paula is the owner of Afford Anything. Afford Anything is a blog and podcast with resources, tips and interviews with all things personal finance. There is a certain real estate feel to her material because this is how she got her start.
If you want to learn about her real estate journey just spend some time looking at her site. She goes in depth on nearly any topic you’d want to know. She believes that buy and hold rental properties are a great way (but not the only way) to achieving financial freedom.
3: JL Collins
JL Collins is a blogger and author at his website. Spend enough time poking around his site and you’ll find that he believes strongly in investing in ETFs through vanguard. He has become well known for his Stock Series and his relatively new book, The Simple Path to Wealth.
Increase your net worth: Key Takeaways
We’ve know looked at several examples of people who are either billionaires or have done a great job in increasing their net worth. The overarching theme of investing in assets is the thing that stuck out most to me. The other thing I wanted to point out is that there are a few, relatively simple paths to increasing your net worth.
The first is starting a business. If you want to be a billionaire this is surely where you’ll need to start. However, this is extremely risky as small businesses routinely fail. If you are shooting for financial independence and want to start a business I’d start small, keep your expenses low and don’t over extend yourself.
The second path is investing in stocks. Whether this be through ETFs like JL Collins or picking stocks like Warren Buffet this is another avenue that can bring a lot of success. If you are shooting for financial independence I’d recommend taking Warren Buffet’s advice and staying away from stocks.
The third path is investing in real estate. Real estate is a great asset and one that allows you to grow something as big, or as small, as you’d like.
Increase your net worth today
The easiest way to start today would be investing per Warren Buffet’s advice above. It doesn’t take any time and would allow you to continue to focus on growing your income and tracking your expenses.
Another route that would be a great way to get started is to buy a rental property. Thats certainly going to take a bit more time but may be less risky if you aren’t up for huge swings in the market.
Its all about getting started and taking action.
What do you think? How have you increased your net worth? Let me know on social media or in the comments!