Undoubtedly, everyone desires to be on the status where billionaires are. Many billionaires have economic and educational perks, but their hard and smart work and business choices take them to the point where everyone sees idealize them. But it’s crucial to know about the process of money-making and keep them safe. They are so many players in the billionaires’ world who play well with money-making, saving and keeping them safe.
Bill Gates, Larry Page, Elon Musk, Jeff Bezos, Warren Buffet, these billionaires have such huge net income like Bill Gates’s net worth is 137.8 Billion USD, $207.9, $162.3, etc. Every ordinary person is curious to know that how billionaires spend such a large amount of money? How do they manage it, where do they keep it- Right?
A common person can easily store their wealth in their banks, but its’ not as easy for a billionaire to keep all the money in banks. They have a big buck and need many different ways to keep their wealth. Do you think it is convenient for Oprah Winfrey, Elon Musk, Jeff Bezos to store their wealth in one place? Keeping all the money in one place is financially risky.
Isn’t it intriguing to know where all these richest people keep their millions and billions of bucks? Because, of course, it’s not just a matter of $10,000, but a large amount of money.
Let’s have a look at five fascinating ways where these richest billionaires keep their enormous wealth.
1. Keep in Bank
No doubt, a bank is one of the safer options for these billionaires to store their money with the facilities and provide them whenever they need it with all the ease. You know that the billionaires are billionaires because of their smart decisions and perfect choices. So they know how much amount needs to be stored in the banks. And what to do with the rest of the amount.
One assumes the interest on the money these billionaires have in their bank accounts. Obviously, the interest in their large amount of money is pretty more than those with a short amount of money in accounts. Undoubtedly, banks facilitate the billionaires a lot, so they store their money. Also, they often tend to save money with high interest, like fixed deposit accounts. But not all of their money is in banks. It’s intelligent not to store all the money in the bank, and almost all the billionaires have owned it this way.
There is a massive wealth of billionaires to manage, and they want a trusted way to store their wealth. There are billionaires like Jack Dorsey, Jack Ma, Elon Musk who have investments in cryptocurrencies, like Ethereum, Dogecoin and Bitcoin. One of the most preferred reasons these billionaires opt this way is the profit incentives by these digital currencies.
It’s pretty risky to opt for cryptocurrency, but they love to take risks. It’s because, on the next corner of jeopardy, there is a massive profit. So, they preserve their money and make even more with the help of cryptocurrency investments.
There are billionaires, like Sam Bankman, whose net worth is $22.5 billion. Brian Armstrong, with a net worth of $11.5 billion, and Chris Larsen, whose net worth is $6 billion. All of them have preserved and broadened their wealth by preferring cryptocurrency.
3. Real Estate
It’s surprising yet enthralling that ultra-high net worth billionaires invest in real estate to make and maintain money. Real estate is a famous way to preserve wealth at it generates a good passive income for a long time. They concentrate on off-market deals and stay updated with the information. Many of them use others’ money to invest in real estate and make smart decisions.
They work with a private lender to invest in real estate and utilize their earned wealth. Also, it has been analyzed that the federal government will give owners who invested in real estate credit on their mortgage expenses and property taxes paid. Investing in real estate is one of the best ways to maintain money while making it more. Many billionaires have opted to invest in real estate to preserve their wealth.
4. Private Equity and Hedge Funds
Private equity funds and hedge funds are good sources for billionaires’ money management. Billionaires invest their money in hedge funds.
Have you heard about George Soros? He is a billionaire who founded Soros Fund Management as a hedge fund but now operates as a family office. So, it shows how much billionaires believe in hedge funds to preserve their wealth.
Another advantage of hedge funds is that the billionaire investor can add or redeem the shares whenever they’d like to. Private equity funds are also admirable by the billionaires in investments to store their large amount of money.
Owning art to store money is not what all the rich do, but many of them have adopted this way as a store of value. They invest in art, though they need a lot of patience and skill to follow this method to store their wealth. They need patience because it can take almost a decade or even more sometimes. Another possible aspect is that no guarantee of returns often.
Yet many billionaires have the guts to choose this medium and store their wealth through investing in art. What actually happens is that the upcoming artists sell their art pieces to these billionaires, and the billionaires believe that the artist will make it big in the near future.
The risk can fall on both sides, if the artist would be successful by making it big, the ultimate benefit is for the billionaire investor, and what if the artist can’t make it big enough? This is the kind of risk that most billionaires don’t want to take, so they prefer buying the art pieces that are already worthy enough and have proven their value. There are many billionaires who buy masterpieces to preserve their wealth. And many Billionaires and millionaires use this method to avoid taxes.
Related: Rich people how to reduce taxes