After researching and studying the lifestyle of billionaires and tycoons through books and interview videos, let me share a brief summary of how their minds work.
1. Live Poor
Billionaires are ultra rich but prefer to live poor. They tend to be frugal and live below their means. Their wealth gives them choices to buy whatever they need and want, but they would prefer to only buy what they need.
While there are some billionaires who like to flaunt their wealth and extravagant lifestyle on social media, most billionaires prefer to keep their personal life under wraps and live simply and peacefully.
Mark Zuckerburg, founder of Meta or former Facebook wears the same t-shirts and jeans everyday and drives a simple car, Volkswagen Golf instead of luxury fast cars. Bill Gate, founder of Microsoft and once the world's richest man only wears a cheapo $10 watch just like a Singapore's minister who only wears a Casio watch.
2. Don't need a budget
With immense discipline and instilled self-control, most millionaires do not need a budget to limit their spendings. Billionaires do not need a budget not because their bank balances have abundance of cash to spend, but because they have multiple income streams, yet only need a small portion of their fortunes to live life.
Even as the incomes of billionaires grow over the years, most tend to not increase their expenditure in tandem with more income. This is in contrast to poor men mindset which tend to spend more as they earn more, trapping themselves in a poverty cycle.
Budgeting is important to track one's expenditure and avoid unnecessary spending. It is great in the early phase of financial planning for most people on the streets but for billionaires whose lifestyle remains the same despite compounding growth of income, it is not necessary for them anymore.
3. Eat and dress simple
Billionaires do not like to waste time thinking about what to eat for meals. They eat whatever they like or in the easiest manner.
The world's richest man, Elon Musk only has a breakfast bar and coffee for breakfast, which sometimes he even skipped. His lunch consists of chicken or steak for protein, grains and mixed salad. His dinner has some animal protein and veggies. When he was in college, he challenged himself to spending $1 for a day of food by only eating hot dogs, peppers and oranges.
The most legendary investor, Warren Buffet enjoys junk food and has coke and Mcdonald burgers everyday for his meals and managed to live beyond 90 years old till now. Fastfood is relatively cheap in terms of affordability to a multi-billionaire. Mark Zuckerberg also enjoys Mcdonald and was seen eating burgers with his wife many times in Mcdonald.
4. Own income producing assets
All millionaires and billionaire tycoons own income producing assets. Most own real estates and/or business empires that churn out money even when they sleep.
Billionaires know how to manage risks of their investments and periodically rebalance their portfolios to achieve the optimal allocation of stocks, bonds, real estate or intangible assets of their overall wealth.
Billionaires also have access to illiquid physical assets such as arts, commodities, antiques or private company interests or equity that are uncorrelated with the market. As long as those assets have potential growth or income producing prospects, they would be more than willing to part their money to invest in them.
5. Do not follow the crowd
Many billionaires do not have herd mentality. Some may even have contrarian mindset when it comes to personal decisions and investments. They sense opportunities during crisis and sense danger during peaceful and greedy times. Millionaires like to separate themselves from the herd, and if possible, create own new herd and get others to join it i.e.. Elon Musk?
Many billionaires live in their own world. They do not compare their wealth with others. This is a bad habit which only people on the streets do. Billionaires run their own race and compete in their businesses by delivering better goods or services to humans.
Billionaires do not listen to noises but based their decisions on sound fundamentals and logic instead of irrational behavior such as fear or greed.
Thanks for reading. Stay safe and remain strong always!
No comments:
Post a Comment