Building an investment portfolio helps you build passive income.
Want to increase your monthly income? Or planning for early retirement? Or need an alternative income stream in case you lose your job? This is why you should find the motivation to invest.
It’s a good idea to look for profitable income avenues where you can invest extra cash. But what if the financial situation of the country doesn’t seem stable? Or when the world’s wealthiest people seem to lose a lot of money?
The year 2022 wasn’t the best for the world’s richest. You would be astonished at how much some of them lost last year. Though most of them are still billionaires despite a significant decrease in their net worth.
How Much Billionaires Lost in 2022?
You may have heard about the enormous wealth loss in 2022 for the world’s wealthiest. Now, let’s explore the details.
Elon Musk
In 2022, the CEO of SpaceX, Tesla, and Twitter lost a massive $182 billion in 2022. With this, he set the Guinness world record for losing the most personal fortune in history. The current net worth of Elon Musk is $146 billion.
The major reason is the drop in the prices of Tesla stocks. For reference, the stocks slumped by 70%. The Twitter deal also didn’t seem to work in his favor.
Jeff Bezos
The second person on the list is the founder of Amazon. His net worth shot up during the pandemic. With people staying at home, online shopping was their go-to option. Now that the world is getting back to normal, Amazon stocks also fell from $183 to $81 in 2022.
He lost $80 billion and his current net worth is $121 billion.
Mark Zuckerberg
In 2021, the founder of Meta platforms (initially known as Facebook Inc.) became the world’s 3rd richest person. He was expected to become the world’s richest soon. But now, he is 26th on the list.
2022 didn’t prove a great year for him when he lost $78 billion. As a result, his net worth dropped to $50 billion in 2023. With Meta failing to perform to expectations, this may further drop in the coming days.
Larry Page and Sergey Brin
The next billionaire to lose big in 2022 is Larry Page. The business magnate is the co-founder of Google, now called Alphabet.
The computer scientist lost $40 billion last year which reduced his net worth to $80 billion. The major reason is the drop in stock share prices of Alphabet company.
The other co-founder of Google, Sergey Brin, also lost $46 billion due to the same reason. Starting the year with $127 billion, he was worth $77 billion at the end of 2022.
Former Billionaires
Recently, the cryptocurrency trading platform FTX filed for bankruptcy. The former CEO, Sam Bankman-Fried was arrested and is now facing legal charges. The former billionaire has now lost most of his wealth and claimed he has only $100,000 in his bank account.
Rapper Ye (formerly Kanye West) was a billionaire till last year. But his anti-Semitic comments led to a huge drop in his net worth. He lost deals with major brands including Adidas, Gap, and Balenciaga. Now he is worth $400 million as of January 2023.
Regain Your Motivation to Invest
Market downturns, such as the one experienced by billionaires in 2022, are a normal part of the investing cycle. Historically, the market has always recovered over time. So, it’s time to regain motivation and begin your investment journey.
Learning about the Why’s
Some of the leading billionaires lost a lot of money in 2022. At the same time, many others made it big and entered the list of the world’s wealthiest for the first time. An example is Bernard Arnault, the CEO of Louis Vuitton.
Now, before you worry about a financial crisis, look at individual performances.
In most cases, billionaires lost money due to a sudden drop in the value of their company’s shares. So, it doesn’t necessarily mean you would experience losses too. The share price of some companies decreased and other shares went up.
You can learn from this and diversify your investment portfolio. Invest in suitable shares, bonds, real estate, and diverse avenues. This will secure your investment. Also, you can avoid huge losses in case the shares of a single company drop.
Visualize Long-Term Benefits
Sometimes, it can be difficult to find the motivation to invest. But you can make up your mind by looking at its long-term benefits.
Think about how a good investment can benefit you in the long run. It can improve your lifestyle and bring you financial freedom. Also, you can achieve your financial goals and build a better life for your kids through a stable income.
Preserving the Value of Money
Due to inflation, your savings lose their worth with time. Think of it this way: you may have purchased a household appliance for a few hundred dollars. Now, look at its current market price. Its current price might have gone way up since then.
As per the Bureau of Labor, prices of appliances increased by around 13% due to inflation last year. Just water heaters experienced a 40% hike in prices since 2021.
Money loses its worth or value with time. So, saving alone can’t save you from the effects of inflation. Rather, you need to invest in profitable streams. This way, you can outpace inflation and increase income.
Do What Millionaires Do
No one gets rich by working 9-5. After a full-time job, it’s not always easy to work on a side hustle especially if you have a family. And even if you do, it usually takes time to make your side hustle profitable.
Don’t get me wrong. It’s a good idea to work on your side hustle. But you need passive income too. This way, your income won’t become zero when you don’t or can’t work. With good investment, you can overcome this dilemma.
Do what millionaires do. And invest in streams that can bring you stable revenue. You can also invest in streams that involve higher risk but bring high returns. But make sure you can afford the potential loss.
Conclusion
Right investment decisions can lead you to financial freedom. You can build a financially secure lifestyle and generate passive income. Thus, you should get started with your investment journey as soon as you can.
When choosing an investment option, look at market trends. The year 2022 noticed some billionaires losing quite a lot of wealth. But this doesn’t mean you should stop investing due to these statistics. There were certain factors due to which these individuals lost money.
You can learn from their mistakes and start investing in profitable streams. It’s never too late to find the motivation to invest for your future!