Becoming a self-made billionaire puts you in a league of your own. We all want to know the secret to success.
So, if you could sit down with a self-made billionaire, what kind of money advice would you seek from them?
Here are some of the best pieces of advice offered up by self-made billionaires.
Use these tips wisely, and you can put yourself on a path to financial solidarity and success.
1.” Be a cheapstake” by Chris Sacca.
Christopher Sacca is an American venture investor, company advisor, entrepreneur, and lawyer.
He is the proprietor of Lowercase Capital, a venture capital fund in the United States that has invested in Twitter, Uber, Instagram and Kickstarter.
Sacca’s best advice to young adults hoping to build their portfolio is: Don’t spend your money!
Instead, he advises you to pinch your pennies and have your priorities in order for the long haul.
2. ” Have a lifeboat” by Reid Hoffman.
Reid Hoffman is a co-founder of LinkedIn and the dating website SocialNet, and was Chief Operating Officer for PayPal.
Hoffman now works to educate entrepreneurs on career planning and risk-taking. He calls this ABZ planning.
Having a lifeboat option is important because if potential failure could leave you bankrupt and homelessness, you won’t want to take any risks — and therefore you’ll never grow.
3. “Live simply and invest in yourself.” Warren Buffet
The CEO of Berkshire Hathaway has simple tastes, lives frugally and enjoys being a generous philanthropist.
He often grabs a cheap breakfast from McDonald’s on the way to work but there are some things that are worth investing in and at the top of that list should be yourself.
Whatever your weaknesses are, take steps to address them and overcome what might be holding you back.
Go out of the way to show your love for friends and family, but don’t rely on extravagances to show others he cares.
Related: 10 Life Traits to Learn from The World’s Most Inspiring Business Leaders of all Time.
4. “Have an emergency fund set aside.” Quoted by John Paul DeJoria.
Life hasn’t always been easy for self-made billionaire John Paul DeJoria, but his experiences have taught him valuable lessons.
Born into a poor immigrant household, he began working when he was 9, selling greeting cards and delivering newspapers to help earn money for his family before becoming where he is now.
DeJoria’s advice to young entrepreneurs is to make sure you have a cash cushion before you launch your business.
5. “Don’t quit your day job.” Quoted by Sara Blakely.
Sara Blakely, the founder of Spanx, is the youngest female self-made billionaire ever to be included in the Forbes World’s Billionaires list.
Blakely pinched her pennies and avoided incurring any debt as she went through the process of launching her business.
She wrote her own patent using a textbook and designed her product packaging with the help of friends.
She never accepted any money from outside investors. She continues to own 100% of the company, debt free.
6. “Understand that entrepreneurship is a high-risk path.” Quoted by Dustin Moskovitz
Dustin Moskovitz became one of the world’s youngest billionaires as a Facebook co-founder, helping then-roommate Mark Zuckerberg launch the social media site from their college dorm room.
Although he was able to find success at a young age, Moskovitz cautions others that becoming an entrepreneur is rarely a path to fame and fortune.
Entrepreneurship is a high-risk path, and the odds of achieving billionaire, or even millionaire, status are extremely low.
Only a handful of companies end up growing to that kind of scale, Moskovitz said during a presentation to Stanford business students.