Start investing early
If you aspire to become a billionaire, you must start investing as early as you possibly can and let the law of compounding work its magic for you. A modest investment of $1,000 which earns an 8% interest (which is compounded annually) will earn you a sum of $10,063 in 30 years — even if you do not make any additional contributions. This is why it pays to start investing early.
What is equally critical is that you should not be too conservative in your approach toward investing. If you park all your money in savings accounts, certificates of deposits and bonds you will barely be able to beat inflation with the returns you get.
So, you must diversify your investments in order to get higher returns in the long term. You can choose to invest in stocks, mutual funds, fixed-income investments, commodities, real estate and alternative investments like rare art and wine.
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