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Are you an aspiring billionaire? You better read this.

Are you an aspiring billionaire? You better read this.

Do you want to become a billionaire? Then quit your job and forget your own path. That’s the advice of the second annual Billionaire Census.

According to the census, “Entrepreneurialism and private wealth are key to becoming a billionaire.”

There’s no mention of a lifetime of frugality, 401K, nor working the way up the corporate ladder.

If you didn’t already have the motivation to quit your job and pursue that idea that’s been rattling around in your head, you might have it after reading the report (or watching the video about it).

The census, conducted by Singapore-based ultra high net worth firm Wealth X, reveals that 81 percent of the world’s billionaires made the majority of their fortunes themselves.

Broken down further, it’s seen that 55 percent made all their wealth themselves, and 26 percent inherited a portion of their wealth and converted it into billions.

The other biologically blessed 19 percent of billionaires inherited their entire fortune (You’re the best, mom and dad!).

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    One-hundred and fifty five folks joined the illustrious billionaire ranks over the past year, swelling numbers to 2,325.

    Wealth X predicts that by 2020 there will be 3,873.

    So get crackin’, that’s 1,548 spots waiting to be filled!

    Like a mirror of an Olympic medals table, the USA sits atop the list of billionaires with 571, well clear of China in second place.

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      The census comes with no specific directives about which industry to deploy your plan in to reach that elusive billion.

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      It suggests that there are billions to be made in most areas; though there is a predisposition for the finance, banking and investment industries.

      What is clear is that working for “The Man” for a lifetime is almost guaranteed not to reward you with billionaire-scale riches.

      It shows that entrepreneurial grinding and hustling is the best road to a billion dollars. A little startup cash doesn’t go astray, either, as 26% of billionaires will attest.

      Combined, the world’s billionaires are worth $7.3 trillion. The top four are each worth more than $50 billion.

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        That’s a hell of a lot of money even they couldn’t afford to complete construction of the Death Star.

        On average, the members of the Billionaire’s Club keep $600 million of their assets in cash. You know, just in case.

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        Shaking the newfound perception of youthful tech billionaires, the census shows the average age of billionaires is 63, and it typically took around 45 years for each of them to reach a billion dollars.

        So don’t be so down on yourself if you’ve reached 30 without making your first billion.

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          A college degree isn’t mandatory to reach the billionaire level, according to the census, but it does help.

          Thirty-five percent have no degree, compared to 65% who completed their studies.

          Just over one-fifth of the world’s billionaires hold an MBA.

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            The University of Pennsylvania (Go Quakers!) is responsible for the most billionaires, making their founder Benjamin Franklin proud and further justifying his place on the $100 bill, by churning out 25 billionaires.

            The super wealthy have a tendency to give, on average they each donate $100 million to charity over the course of their lifetime.

            A billion dollars is a long way off for most entrepreneurs, especially those starting out.

            It is a goal that sneakily creeps into the mind of any budding business owner. But be careful not to become to enamoured with this distant monetary halo.

            Focus on providing value now, that can bring the fortunes later.

            Alternatively, if you’re not planning to start your own business and don’t have any billionaire relatives nearing the end, there’s always the, ahem, “other” way to make yourself a billion: 3.1 percent of billionaires are single.

            Check out the full report here: http://www.billionairecensus.com/home.php

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            Last Updated on June 6, 2019

            The Average Retirement Savings and How to Save Wisely

            The Average Retirement Savings and How to Save Wisely

            Are you on track for retirement?

            If not, don’t worry, I’m not sure either. I save each month and hope for the best.

            Fortunately, I’m at an age where most people don’t save so I’m ahead of the curve.

            But, what if you aren’t in your 20s? What if you’re near retirement and are looking to gauge where you stand?

            If so, keep reading. Here’s how to prepare for retirement and save wisely during the process.

            What Does the Average American Have Saved for Retirement?

            Saving for retirement is tricky.

            Tell someone straight out of college to save $10k a year for retirement and it’ll be next to impossible.

            Make the same request to someone decades older and they’d be more likely to be able to save this amount. But, a 20-year old college student can be “financially ahead” of someone saving more than them. Why?

            Age matters in your financial journey. The younger you are, the more time you have to save and put compound interest to work. As you get older and have more saving power, you’d have less time to put compound interest to work.

            Here are the average savings Americans hold by age bracket:

            20’s – $16,000

            During this stage, most people are paying loans and moving up the corporate ladder. Your best bet during this stage is to focus on eliminating debt and increasing your income. Don’t focus only on getting a high-paying job neither.

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            Instead, focus on learning via Podcasts, reading books, and taking specialized courses. Doing this will make you more valuable and give you more career options.

            30’s – $45,000

            At this stage, you’ve hopefully escaped your entry-level salary and work at a career you enjoy. Your earning power has increased but you now have more obligations. For example, marriage, kids, and a mortgage.

            Set a plan to pay off all your debt and focus on eliminating unnecessary expenses. Leverage financial tools like Personal Capital to ensure you’re on track for retirement.

            40’s – $63,000

            This is the stage where you’re at the prime of your career. Top financial institutions recommend you have at least 2 to 4 times your salary saved up. If you’re falling behind, start maxing out your 401K and Roth IRA accounts.

            50’s – $115,000

            During your fifties, you’re close to retirement but still, have time to save. You may be helping your kids pay college tuition and other expenses. Since you’re at the peak of your earning power, max out all your retirement accounts.

            60’s – $172,000

            By this point, you should have about eight times your salary saved up. If not, you’ll depend primarily on social security benefits averaging $1400 per month. Max out all your retirement options as much as possible before retiring.

            Ways to Save Money on a Tight Budget

            The sad reality is that most Americans aren’t saving enough for retirement.

            Even high-earning power isn’t enough to secure one’s financial future. You need to have the discipline to save for retirement while time is in your favor. Don’t wait for you to have a high salary to save, start with having a small budget.

            First, get a clear picture of where you stand. Write down a list of “needs” and “wants.” For example, Netflix and Amazon Prime are “wants” and a “cell-phone” is a need.

            Use tools like Personal Capital to analyze your spending patterns. Personal Capital allows you to add all your financial data in one place–making it a powerful option to gauge where you stand.

            Once you know all your expenses, organize them from highest to lowest expense. When you can’t cut more expenses, call your service providers to negotiate a lower price. If you’re not good at negotiating, use services like Trimm to lower your monthly expenses.

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            How to Save Money Each Month

            By this point, you know the average amount of money you should have saved for retirement based on your age.

            But, breaking this down into monthly goals can be challenging. Here are some rule of thumbs to follow:

            Aim to contribute 10%–15% of your salary each paycheck. Review your progress each week.

            Why so often? The reality is that life gets in our way and you will have many financial setbacks. Your goal isn’t to be perfect but to get back on track instead.

            Reviewing your finances weekly lets you know where you stand with your retirement. This doesn’t have to be a long process either. All it takes is login in Personal Capital to view your net worth and check how much you have saved for retirement.

            Turn saving into a game and aim to save more each month. It will get challenging but you’ll get creative and find more ways to save.

            Top Money Saving Challenge Tips

            To prepare for your financial future and not be another statistic you need to be different.

            How?

            By adopting new habits that’ll help you become a saving machine. Here are some ways you can save more:

            Automatically Contribute Towards Retirement

            If you’re working for a company, you can automatically contribute towards your 401k. If you’re not currently contributing more than 10%, make this your goal. Contribute 1% more today and automatically increase this amount a year from now.

            Odds are that you’re not going to be negatively affected by contributing 1% more. Many times we spend our money on things we don’t need. Contributing more towards retirement is a great way to secure your financial future.

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            Use the Right Tools to Know Where You Stand

            Once you’re contributing more towards your retirement accounts, gauge your progress. Make use of finance tracking apps to help you view the big picture of your retirement.

            When I’d first signed up for the app Personal Capital, I didn’t know I had a negative net worth. Despite saving thousands of dollars, my debt brought my net worth to the negative. Knowing this motivated me to save more and spend less.

            Now, I have a positive net worth. But, it was because I was able to view the big picture using the app. Find out what your net worth is using a finance tracking app and you may surprise yourself.

            Bring in Experts to View Your Blind Spots

            If you have too little or too much money saved, you should consider hiring financial experts.

            Why?

            You may need someone to hold you accountable to help you reach your financial goals. Or, you may need help managing your money as effective as possible.

            Regardless of the reason, getting help may help improve your financial situation.

            Before you hire an expert, find out which areas you need help the most. For example, if you’re constantly overspending, find a debt counselor. If you’re struggling with choosing the best investment options, hire a financial advisor.

            Speed up Your Retirement Contribution

            After learning how to manage your money well, the next best thing is to earn a higher income.

            You’re capped at how much you can save but not much you can earn. Even if your employer isn’t giving you a promotion, you can still take charge of your financial future. How?

            By starting a side-business.

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            This will be something you’d work on after you’ve finished your day job. Once you start earning income from your side-business, you’ll be financially better off.

            The best part is the more work you put into your side-business,[1] the more potential it has to earn more money.

            So start a side-business in an area you’re familiar with. For example, if you enjoy writing, do freelance writing for small e-commerce businesses.

            Once you’re earning a higher income, you can contribute more towards your retirement. Don’t wait for the right opportunity to secure your financial future, create one.

            Reach Financial Freedom with Confidence

            What if you were able to retire tomorrow with no problem, all because you’d have enough money saved up and little to no debt left to pay off? How would you feel?

            My guess is that you’d feel happy and relieved.

            Most Americans are falling behind their retirement goals for many reasons. They’re not prepared, they carry bad money-habits and are thinking short-term.

            For you to retire successfully, you need to work backward and adopt better habits. Contribute more towards your 401K and focus on growing your income.

            If you do, you’ll save money and pay debt faster.

            Don’t beat yourself up if you’re behind your retirement goals. Take the first step today towards a brighter financial future. Isn’t retirement worth the hard work and sacrifice to be at peace?

            Featured photo credit: Huy Phan via unsplash.com

            Reference

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