Let’s say I am 20 years old. I just got a real desire to become a billionaire. I want to play it fair and bring good to the society and be a decent human being, but I also want to be a billionaire and live a life with financial freedom.
First 2-3 years (I am 20-23) I study really hard. Be it a degree in Computer Science, in Philosophy or in Psychology, or some courses I take online or by attending an evening school, I study really hard. I try to do a few internships/short projects for the experience and some money. I might have to work to support my studies in general, on a job not necessarily connected to my speciality. I am 23 already once I finished all of this.
I have a mentor who helps me. Sometimes it is necessary to change a mentor/boss, but it is important to have a strongly bounded relationship like that because it really helps.
Next 1-2 years I study hard as well (24-25), but I also do more work on projects/internships as part of my study. Or it can be another way around: I work in the field which I feel will bring me my billions, but I also study hard part-time.
I am 26. I have some basic experience, I have a good education (be it a uni degree or a collection of the courses which are relevant to my field). I find a full-time job that will pay me well at my level (let’s say 30k), but where I also have a good mentor/boss and where I can learn more.
I work hard. I make connections. I focus on my job and do my best. I learn as much as I can in the process, gaining experience.
I practise meditation, mindfulness and keep healthy. I know how to relax and recharge. I learn and practise combining smart and hard work and good rest. I have or find a few good friends and a partner in my life. Sometimes a relationship does not work, and I just try again.
I work hard and I am valuable. When I become 28 years old, I now do 50k per year. I got more experienced, became a more efficient and valuable professional.
I look for opportunities. I focus on one thing. I look for my dream job, be it a job for myself, i.e. self-employed or as an entrepreneur, or a job in a company which is big or which is to become big. I find my dream job.
By 30 years old, I have a salary of 55k. (If I don’t, I reevaluate why I don’t, and improve.)
I allocate 10% of my salary to a relatively safe, risk-averse, diversified portfolio with 5% average net return.
In addition to the salary being spent wisely (with me investing in myself and my family, as well as into savings), I look for stock (share) opportunities in a company I work for. Let’s say that on average, I am able to get each year extra 20% to my salary in stocks. Also, let’s assume that on average, the shares (i.e. my capital) that I already have are growing at 20% rate per year. Also, since I work smart and hard, my salary, on average, increases 15% per year. When I say “net”, I also mean already adjusted to the inflation.
During all this time I consistently study more of the world: “applied” philosophy, how the world works, how society and money work, psychology, motivational studies, and the basics of how the Universe works.
I keep growing. I relax and recharge myself all the time. I have meaningful relationships with close people in my life. I invest in myself and in my family: to work hard and smart, and to be in a good shape, I need to invest in myself and in my family.
If I keep doing all of this, by 34 years old I have more than 100k in capital and 40k in my savings. By 42, I become a millionaire, thanks to my savings and capital combined together. By 47 years old, I have in my savings a half of million “raw”, as well as 3.1 millions in capital. By 52 years old, I have more than 10 millions combined.
When I am 73 years old, I have 500 millions in the capital, plus 25 million dollars in savings. After that I shall start working less, with my salary gradually decreasing, however everything else still keeps growing.
Obviously, when I say “shares” in the company I work, it can mean both the company I just work for as an employee, as well as the company I co-own. Essentially, once my capital becomes very big, I will become a co-owner of companies in any case. In the beginning, I either can be a smart entrepreneur myself or just work for somebody else’s company. The business can be a tech start-up, real estate, entertainment of some form, catering and food industry, or anything else what you can make on and what you are good at.
It is also important to note that the suggested percentages are the average ones. It is expected that some years might yield smaller returns (even negative), and some years might yield bigger returns (even 2x returns, for example). I appreciate the percentages in the illustration are quite high, but it is possible to grow a business 20% on average each year.
Following this scenario, I am a billionaire when I am 77 years old. Assuming I stop actively working after I am 80, I still become 10-billionaire at the age of 89.
Why shall I become a billionaire? It is another question for another story. It is definitely not for fancy things like a big yacht or a giant house (although they are probably definitely nice to have). It is to have financial freedom and to do what I dream, for the good of myself and others.
The most important thing is to ensure that while being on this intense track, I am still a good and decent human being, that I have a happy and healthy life with people I love and who love me. That I can recharge, reflect, meditate, learn, train and grow myself to fulfil my dreams and be a good person.
You can play with a spreadsheet yourself: https://docs.google.com/spreadsheets/d/1zrdgIz-Nzplogza81sL0guDF3Qm5v6Z3Vf7xq3Y3TeQ (you will need to copy it to make edits).
A more conservative estimate, assuming 15% net annual capital growth (versus 20%), 10% annual salary increase (versus 15%), 150k max cap on your salary (instead of 15 millioncap), 10% capital contribution extra to the salary (instead of 15%), is presented on this spreadsheet: https://docs.google.com/spreadsheets/d/1zrdgIz-Nzplogza81sL0guDF3Qm5v6Z3Vf7xq3Y3TeQ/edit#gid=243513052. That more conservative way, you still can be worth 11 millions at 65 years old, and 500 millions at the age of 93 (even assuming you retire from your active job at 69 years old).
Thank you very much.
Copyright (excluding the purchased images), is by me. If you would like to share, please, just link to this page. Anything above does not constitute any advice, of course. While I am sure this scenario is possible and realistic and a lot of people have been doing it, it does not reflect some specific person’s life or some specific business growth in particular.