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Becoming a billionaire is a lofty goal, but it’s not entirely out of reach if you follow the right strategy. While you may not reach this level of wealth overnight, there are a few ways to set yourself on the path to accumulating $1 billion over time.
Here’s how you can potentially become a billionaire in your lifetime with realistic investment strategies.
Key Takeaways
- It’s possible to amass $1 billion over time with disciplined investments and smart strategies.
- Simply relying on a wage without investing won’t get you there, but using compound interest through investments can significantly shorten the timeline.
- The S&P 500 index fund has historically outperformed many billionaires, showing that anyone can potentially reach the $1 billion mark with consistent investing.
Earning a Billion from Scratch
If you chase after a billion dollars solely with wages and no investments, you will have to work for a long time. According to the U.S. Bureau of Labor Statistics, the average weekly earnings for a full-time worker in the United States was $1,192 per week in the fourth quarter of 2024. That comes out to $61,984 per year. Let’s say you have a second income to cover living expenses and decide to stash your $61,984 annual income under your mattress and make your billion that way.
You’ll have to work and stash your paychecks for 16,134 years before you make your first billion.
Tip
In addition to lots of time, you’ll need lots of space for your cash. A billion dollars in $100 bills will be stacked on 10 standard construction pallets, with each pallet being 48 inches by 40 inches.
You can speed things up if you move your money to a bank savings account that pays the current national average interest rate of 0.41%. In that case, you will have saved $1,000,000,000 in 1,029 years. Compound interest is as powerful as they say!
Saving for a Billion
Since compound interest is so helpful, consider moving your annual wages into a high-yield savings account or a certificate of deposit (CD). The annual percentage yields (APYs) for these fluctuate with the economy’s health and the Federal Reserve’s responses. We’ll keep things simple and use the current best rates for a national high-yield savings account and a CD and assume those rates hold for the campaign’s duration. (In reality, they’ll go up and down, but it’s hard to predict how much, especially over generations of economic activity.)
Currently, the best jumbo CDs pay 4.55% in interest. (We chose a jumbo CD because yours will qualify as one in your second year of saving.) With your annual wage and that return, you’ll amass a billion dollars in 149 years.
Meanwhile, the best high-yield savings accounts pay 4.75% interest right now. You’ll only have to wait 144 years for your billion at that rate.
Investing for a Billion
Investing is your best bet for reaching the $1 billion mark in a reasonable amount of time. A well-structured strategy, such as investing in an S&P 500 index fund (e.g., Fidelity’s FXAIX), can provide the returns you need. Historically, the S&P 500 has outperformed many of the world’s wealthiest individuals—demonstrating that anyone can become a billionaire by following the same investing principles.
You decide to invest your annual wages into an index fund and choose Fidelity’s FXAIX, one of Investopedia’s top funds tracking the S&P 500. You’ll have broad exposure to the stock market without paying a lot in fees, and you won’t have to worry about rebalancing as the tracked companies’ fortunes rise and fall over time. The index fund’s managers will take care of all that for you.
Fast Fact
Can you beat the billionaires? Perhaps surprisingly, you can. From 2020 to 2024, aggregate billionaire wealth in North America grew by 58.5%, from $3.8 trillion to $6.1 trillion, according to the UBS Billionaire Ambitions Report 2024. Over roughly the same period, the S&P 500 index grew 78%, demonstrating the power of U.S. equities markets and the wisdom of index fund investing.
FXAIX has returned 11.02% since its inception in 1988. At that rate of return and annual contributions of $61,984, you will acquire your first billion in 71 years.
| Strategy | Annual Investment | Interest Rate | Total Contributions | Total Interest Earned | Years | Total |
|---|---|---|---|---|---|---|
| Mattress | $61,984 | 0.00% | $1,000,049,856.00 | $0.00 | 16,134 | $1,000,049,856.00 |
| Passbook Savings | $61,984 | 0.41% | $63,781,536.00 | $939,679,759.76 | 1,029 | $1,003,461,295.76 |
| Jumbo CD | $61,984 | 4.55% | $9,235,616.00 | $1,021,093,327.08 | 149 | $1,030,328,943.08 |
| High-Yield Savings | $61,984 | 4.75% | $8,925,696.00 | $1,031,526,660.71 | 144 | $1,040,452,356.71 |
| S&P 500 Index Fund | $61,984 | 11.02% | $4,400,864.00 | $103,635,073.19 | 71 | $1,044,062,234.59 |
A whole lifetime is longer than most average wage earners have to invest, but what a wonderful legacy to pass on to your children or grandchildren. And if they continue to follow your prudent investment strategy, they will double their billion-dollar nest egg to $2 billion by year 78. And four years later (a total of 82 years of patient investing), it will have tripled to $3 billion. It’s true what they say: The first billion is the hardest to get.
How Old Is The Youngest Billionaire?
As of January 2025, the youngest billionaire is Clemente Del Vecchio, a 20-year-old from Italy with a net worth of approximately $5.8 billion. He inherited his wealth from his father, Leonardo Del Vecchio, the founder of Essilor Luxottica, the world’s largest eyewear company.
What Jobs Make You A Billionaire?
Jobs that typically lead to billionaire status often involve high-level entrepreneurship, tech innovation, and financial management. Examples include business owners, tech founders, investors who manage hedge funds and influencers through endorsements and business deals.
Can Anyone Become A Billionaire?
While becoming a billionaire is extremely difficult, it’s not impossible for anyone with the right strategy. It often requires a mix of smart investing, entrepreneurial spirit, and sometimes timing. Most billionaires achieve their wealth by taking calculated risks and capitalizing on business opportunities or market trends.
The Bottom Line
Whether you have 71 years or 16,134, it is possible to become a billionaire like the well-known wealthy such as Elon Musk, Jeff Bezos, Bill Gates, and Warren Buffett.
Besides the above-mentioned investment strategies, other ways for becoming a billionaire include being a successful inventor, being an entrepreneur, and having a business innovation strategy. Don’ts include thinking you know it all, making flashy investments, and giving up too soon.
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