Nov 21, 2024 Last Updated 11:08 AM EST

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Where Elon Musk Gets Most of His Billions That You Don't Know of

Jan 12, 2021 03:57 AM EST

Elon Musk falls to second place in the most richest man in the world. The first place in the category is now back to Amazon CEO Jeff Bezos. 

Despite the slight loss, Elon still stands with $209 billion net worth, as of January 10. Interestingly, he didn't get all these money from his salary income alone. Here's the secret to his success. 

Elon Musk's secret tool to success

(Photo : Photo by Maja Hitij/Getty Images)
Tesla head Elon Musk talks to the press as he arrives to to have a look at the construction site of the new Tesla Gigafactory near Berlin on September 03, 2020 near Gruenheide, Germany. Musk is currently in Germany where he met with vaccine maker CureVac on Tuesday, with which Tesla has a cooperation to build devices for producing RNA vaccines, as well as German Economy Minister Peter Altmaier yesterday.

A lot of young people and even business minded-adults praise Elon Musk for his works in many companies he own. Not only does he have knowledge, expertise in technology and business, and dedication; this billionaire also serves as a model on how you should spend and invest your money for long-term goals. 

In simple terms, Elon Musk didn't become the 'Elon Musk' in a day. But, of course, he has secret tools that he has done for over the years, that made him where he is right now. 

According to Internal Revenue Service (IRS)'s "The 400 Individual Income Tax Returns Reporting the Largest Adjusted Gross Incomes Each Year,"  billionaires do not depend their riches in their salary income alone. 

In fact, one of the major things that they does is to make sure to have their own businesses, and be your own boss. 

As explained on the IRS report, people like Elon Musk gets their money in five different ways: 

  • Wages and salaries: 4.4 percent
  • Interest: 4.2 percent
  • Dividends: 10.9 percent
  • Sale of Capital Assets: 65.2 percent
  • Partnership and S Corp Net Income: 16.2 percent

As we can see, the possible second lowest money source of Musk is through wages and salaries. Surprisingly, capital assets hold the highest source of income for billionaires. 

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What is a capital asset

(Photo : Photo by Britta Pedersen-Pool/Getty Images)
SpaceX owner and Tesla CEO Elon Musk arrives on the red carpet for the Axel Springer Award 2020 on December 01, 2020 in Berlin, Germany.

Capital assets are main properties such as homes, cars, investment properties, stocks, bonds, and even collectibles or art. This is where Musk probably invested most of his money. 

In conclusion, if you want to have billions like Musk, be your own boss of yourself. 

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