With today’s economy, it’s easy to think that you’re the only one that’s being directly affected by the losses on the stock market or by the rise in prices on food at your local supermarket. It’s also easy to feel like the only people being affected by the recession or the middle and lower class people, blue collar workers.
Unfortunately, this is not the case. Even the world’s most wealthy people are bleeding money. Now, don’t get me wrong, I do not feel sorry for these people. In my opinion, if you can lose over 5 billion dollars and still have a net worth of 13 billion dollars, you’re doing pretty good. If you’re on a “billionaire” list, you really don’t have as many worries as the rest of us. Yes, you may have to sell one of your fifteen homes, but you still have electricity, food, a home, and clothes on your back.
It absolutely sickens me to think that these people, still making billions of dollars after huge losses in the market, think they have it bad. They don’t know what bad is. Until you can’t pay your power bill or you wonder how you will feed your family this week, you don’t have it as bad as most of the people in the U.S. right now. I have been there, and struggle every day to keep from falling that far again.
On the other hand, I think it’s important to realize that we are not the only ones losing money from the recession. It’s very easy to think that you and your neighbors are all struggling, but it’s not easy to think that a billionaire even knows what the word “struggle” means when it comes to money. But according to some numbers, these billionaires may be learning to associate money with the word struggle.
Forbes agrees. They recently noted that “They’re reeling as much as everyone else,” in regards to billionaires. Effects have been seen globally. I had no idea until today that a former Icelandic billionaire (Bjorgolfur Gudmundsson) sold the soccer team that he owned in order to pay off his debts. I also learned that a German billionaire Adolf Merckle took his own life after his business suffered losses that he undoubtedly thought he was unable to come back from.
While these stories don’t make me feel sorry for the “billionaire community” as a whole, it does help to know that I’m not the only one suffering. I’m not saying that I want everyone to feel what I feel and to go through what I’ve had to go through. It’s just that for once, it looks like the people who seem to always be ahead, actually may begin to know what it’s like to really feel the economic downturns that our world has faced before.
I hope that since these billionaires have suffered losses and suffered from the recession that maybe they won’t take it for granted again. I can only hope that if they recover their money, they realize how precious it is and give more of it away to charitable organizations. Maybe for once, they’ll realize that they own over 50 percent of the world’s wealth and it should be taken care of rather than being spent on frivolous things.
Maybe everything really does happen for a reason, and maybe we’re all really not alone.
[this article was featured in the 210th edition of the Carnival of Personal Finance at Urban Dollar]
Feeling the need for a little inspiration on the road to wealth building? I always love to read about people who have beat the odds and made a dramatic rise in their financial situation.
What follows are the stories of 10 billionaires who started with nothing and now have it all.
Net worth: $31 billion
World’s richest retailer and founder of furniture store Ikea.
Kamprad began to develop a business as a young boy, selling matches to neighbors from his bicycle. He found that he could buy matches in bulk very cheaply from Stockholm, sell them individually at a low price and still make a good profit. From matches, he expanded to selling fish, Christmas tree decorations, seeds and later ball-point pens and pencils. When Kamprad was 17, his father gave him a reward for succeeding in his studies. He used this money to establish what has grown into IKEA.
The acronym IKEA is made up of the initials of his name (Ingvar Kamprad) plus those of Elmtaryd, the family farm where he was born; and the nearby village Agunnaryd.
Kamprad has admitted that his dyslexia played a large part in the inner workings of the company. For example, the Swedish-sounding names of the furniture sold by IKEA were originally chosen by Kamprad because he had difficulty remembering numeral stock-keeping units.
Reputed to be quite frugal: flies economy class, frequents inexpensive restaurants, furnishes his home with Ikea ware.
Net worth: $26.5 billion
Li fled turbulent China in 1940 and resettled in Hong Kong. Li’s father died in Hong Kong.
Shouldering the responsibility of looking after the livelihood of the family, Li was forced to leave school before the age of 15 and found a job in a plastics trading company where he labored 16 hours a day.
By 1950, his hard work, prudence and his pursuit of excellence had enabled him to start his own company, Cheung Kong Industries. From manufacturing plastics, Li led and developed his company into a leading real estate investment company in Hong Kong that was listed on the Hong Kong Stock Exchange in 1972.
Net worth: $23.5 billion
Roman, was gifted with a talent for business and being in the right place at the right time as he started his career as an entrepreneur just as Soviet premier Mikhail Gorbachev’s reforms permitted the opening of small private businesses.
He began his business career selling plastic ducks from a grim Moscow apartment but, within a few years, Abramovich’s vast wealth spread from oil conglomerates to pig farms, and secured his place within Yeltsin’s inner circle. However, even today, his task force of bodyguards and armoured Mercedes testify to the high-risk nature of capitalism in post-Soviet Russia.
Net worth: $26 billion
The son of a Boston cabdriver, he borrowed $200 from an uncle to sell newspapers at age 12. Later, he dropped out of college to become a court reporter. Now a casino and hotel magnate, Adelson took his Las Vegas Sands public in December 2004.
He worked at a young age selling newspapers on local street corners and owned his first business by the time he was twelve. In the years that followed, he worked as a mortgage broker, investment adviser and financial consultant. He started a business selling toiletry kits, and in the 1960s he started a charter tours business with two friends. He went to college at City College of New York but did not complete a degree there.
The basis for Adelson’s wealth and current investments was the computer trade show COMDEX, which he and his partners developed for the computer industry; the first show was in 1979. It was the premier computer trade show through much of the 1980s and 1990s.
In 1988, Adelson and his partners purchased the Sands Hotel & Casino in Las Vegas, Nevada, the former hangout of Frank Sinatra and the Rat Pack, in order to bring Las Vegas to a new phase of business centricity through the exhibition industry.
Net worth: $20.2 billion
In 1975 he opened the first store in what would grow into the enormously popular chain of fashion stores called Zara.
Net worth: $16 billion
Son of Armenian immigrants, he dropped out of school in the eighth grade and took up boxing.
Kirk Kerkorian was born on June 6, 1917 in Fresno, California, to Armenian immigrant parents. Dropping out of school in 8th grade, he became a fairly skilled amateur boxer under the tutelage of his older brother, fighting under the name “Rifle Right Kerkorian” to win the Pacific amateur welterweight champion.
After the war, having saved most of his wages, Kerkorian spent $5,000 on a Cessna. He worked as a general aviation pilot, and made his first visit to Las Vegas in 1944. After spending much time in Las Vegas during the 1940s, Kerkorian quit gambling and in 1947 paid $60,000 for Trans International Airlines, which was a small air-charter service which flew gamblers from Los Angeles to Las Vegas.
He then bid on some war surplus bombers, using money on loan from the Seagrams family. Gasoline, and especially airplane fuel, was in short supply at the time, so he sold the fuel from the planes’ tanks, paid off his loan – and still had the airplanes. He operated the airline until 1968 when he sold it for $104 million to the Transamerica Corporation.
Later, he made billions buying and selling movie studio MGM. Today his MGM Mirage owns more than half the hotel rooms on the Las Vegas Strip.
“I just lucked into things. I used to think that if I made $50,000 I’d be the happiest guy in the world.” Kirk Kerkorian
Net worth: $2.5 billion
Born in rural Mississippi to a poor unwed teenaged mother, and later raised in an inner city Milwaukee neighborhood, Winfrey was raped at the age of nine, and at fourteen, gave birth to a son who died in infancy. Sent to live with the man she calls her father, a barber in Tennessee, Winfrey landed a job in radio while still in high school and began co-anchoring the local evening news at the age of 19.
Her emotional ad-lib delivery eventually got her transferred to the daytime talk show arena, and after boosting a third-rated local Chicago talk show to first place, she launched her own production company and became internationally syndicated.
Winfrey became a millionaire at age 32 when her talk show went national. Because of the amount of revenue the show generated, Winfrey was in a position to negotiate ownership of the show and start her own production company. By 1994 the show’s ratings were still thriving and Winfrey negotiated a contract that earned her nine figures a year.
Considered the richest woman in entertainment by the early 1990s, at age 41 Winfrey’s wealth crossed another milestone when with a net worth of $340 million, she replaced Bill Cosby as the only African American on the Forbes 400. Although blacks are 12% of the U.S. population, Winfrey has remained the only black person wealthy enough to rank among America’s 400 richest people nearly every year since 1995.
Net worth: $2.5 billion
Jagtiani flunked out of accounting school in London and took up driving taxis and cleaning hotel rooms to pay the bills and support a bottle of whiskey a day habit. He then lost his entire family to illness in the span of one year.
Just 21 and alone in Bahrain with $6,000 of his and his family’s savings, he took over the retail space his brother had leased before dying of cancer and started selling baby products. Chain is now one of the most profitable retail groups in the Middle East.
Thirty years after he landed up in Bahrain the Dubai-based CEO of Landmark group has built himself one the largest and most profitable retail chains in the Middle East, with more than 280 stores, 6,000 employees and an estimated $650 million in revenues.
Net worth: $2 billion
After his parents divorced, Desmond lived with his mother in a garage apartment. Quit school at age 14 to become a drummer and worked in a coat-check room to help pay the bills.
His first job was for Thomson Newspapers, working in classified advertisements. He moved on to another company and by the age of 21 he owned two record shops. He acquired an interest in publishing and in 1974 published a magazine called International Musician and Recording World.
Started his first magazine at age 22 and now owns dozens of titles, including celebrity rag OK!.
Net worth: $1 billion
British writer and author of the Harry Potter fantasy series.
Rowling moved to Portugal after the death of her mother from multiple sclerosis. She returned to the U.K. a single mother and lived on welfare while finishing her first Harry Potter story. Now one of the world’s most successful authors, she published the seventh and final installment of the boy wizard series last July.
She progressed from living on welfare to multi-millionaire status within five years.
I hope you found these stories inspiring. It is difficult for me to relate to people who are wealthy but started out with family money or won the lottery. But these stories prove that anything is possible and it is interesting to see how each rags to riches story is unique.