It’s easy to think Bill Gates or Warren Buffet when you hear the word billionaire. If you’re more in tune with your sense of pan-African solidarity, you might think Aliko Dangote. But that’s still not enough. There is this thing called representation; seeing other people like yourself achieve certain things, or simply being represented makes the idea of you getting there seem more attainable to you. What is this all about, you ask? Not to worry – it will all be clear to you by the end of this very important guide.

NET WORTH

To figure out how wealthy people get on Forbes, we have to figure out how Forbes comes up with its list. The key term is net worth. What is your net worth? How is it calculated and how much of it will get you on the coveted Forbes 400? It turns out it is pretty easy to figure all of that out. Your net worth is simply all of your assets (stuff you own) minus all of your liabilities (stuff you owe). This doesn’t just mean how much money you have or how much money you owe. It’s about everything; houses, art, jewelry and the likes. Liabilities will also include car loans etc.

CREATING IT

Stocks. Equity. There are so many ways of saying it, but one of the biggest things that most people on that Forbes list have in common is their large stake in companies (or even a small stake in very large businesses). There are two ways of going about it; start a business and make it super successful or just buy shares in other successful companies. Real Estate. As the famous Nigerian preacher Matthew Ashimolowo likes to say, “the only estate that is real is Real Estate.” It sounds like a no-brainer but property ownership is one of the sure-fire ways of keeping your worth solid and sometimes growing exponentially.

BOOKKEEPING

One of the reasons why Africans (especially Ghanaians) may have a hard time getting into the realm of Forbes is a lack of documentation. We love for people to know that we are rich but we hate for people to know exactly how much money we have. That mentality is not going to get you on the list. Even though our system does not make it easy to get that information organised, it is essential to undertake your own organization so that you are aware at every point in time exactly how much you are worth. This works even if you’re not trying to get on the Forbes list.

RESOURCES

There are ways you can start calculating your net worth from now. There is a methodology that Forbes uses for it’s lists. Net worth Calculator: http://www.bankrate.com/calculators/smart-spending/personal-net-worth-calculator.aspx Forbes Methodology: https://www.forbes.com/sites/kerryadolan/2011/09/21/the-forbes-400-methodology/

 

We are not implying that simply knowing this information will make you a billionaire or solve all your financial challenges, but having this knowledge is definitely a step in the right direction. This blog will keep you financially savvy and support you in your journey of wealth creation – whether you simply want a comfortable life for you and your family or you plan on becoming the Warren Buffet of Ghana.