6’Self-Made’Millionaires/Billionaires Who Actually Started Out Rich
It was recently revealed that America had a record number of billionaires, 813 of whom resided in the country. While every story of building wealth is unique, the truth is that many billionaires have had assistance getting to where they are right now.
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We’ll explore the idea of “self-made” billionaires and look at how they actually started financially well-off before building substantial wealth.
‘Self-Made’ Billionaires Who Started Rich
We will list people often described as “self-made” billionaires who made their fortunes off the sweat of their labor and great ideas when, in reality, they had a significant advantage due to financial assistance from family.
1. Jeff Bezos
Jeff Bezos got a $250,00 loan from his parents when he wanted to grow Amazon and turn it into the world’s largest bookstore. Bloomberg discovered a 1997 SEC filing that found Jackie and Mike Bezos invested $245,573 in Amazon in 1995.
This loan was a serious gamble, considering that the internet was still in its infancy and the idea of such a business wasn’t guaranteed by any means. Little did they know that this investment could be worth multiple billions and make them extremely wealthy. Bloomberg estimated that the parents’ net worth was around $30 billion, while Jeff Bezos is believed to be worth over $200 billion.
2. Elon Musk
According to Forbes, Elon Musk has a net worth of $194.7 billion, and it has been reported that Elon Musk came from a well-off family in South Africa. Despite his tumultuous relationship with his father, it’s believed that Errol Musk loaned his son $28,000 to start Zip2, his first software company.
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Elon has denied this loan and claim, claiming that his father only provided 10% of a roughly $200,000 angel funding round much later. The startup ended up selling for $300 million in 1999 when it was sold to Compaq.
3. Mark Zuckerberg
Even though his net worth is believed to be over $160 billion today, Mark Zuckerberg reportedly received a loan of around $100,000 from his dad when he was starting Facebook. While little has been documented about this loan, the amount would certainly alleviate financial pressures while growing a business.
4. Phil Knight
With a net worth of over $30 billion and a product that has become a household name, the founder of Nike had to borrow money from his dad in the 1960s to pay for running shoe samples. Knight started selling shoes from the trunk of his vehicle at local track meets in the 1960s, thanks to the loan provided by his dad.
5. Donald Trump
Donald Trump was able to start building his real estate empire with a loan from his father, Fred Trump. While he claimed that the small loan of around one million dollars was used to build a multi-billion dollar empire, a New York Times investigation discovered that Fred Trump had lent his son over $60 million. Trump has also admitted to borrowing over $9 million from his inheritance in the 1990s. [x]
With a reported net worth of $7.5 billion, the former president clearly relied on his father’s assistance to get started in the real estate business, both in terms of funding and connections.
7. Sam Walton
Sam Walton started Walmart in 1962 thanks to a loan from his father-in-law. Walton used $5,000 of his own savings and a $20,000 loan to become the richest man in the country in the 1980s. Alice Walton, the daughter of the founder, has a net worth of $72.3 billion now.
6. Kim Kardashian
It is believed that Robert Kardashian left his family with a $100 million inheritance. While it’s unknown how the money was split up, Kim Kardashian has officially become a billionaire in recent years and one can’t deny the significance of any financial assistance in the early stages.
The Truth About “Self-Made” Billionaires
While many of the people on this list have been described as “self-made,” there are a few valid points worth bringing up:
They had financial assistance when they needed it most. The financial support arrived during pivotal moments when the business founders needed money to purchase supplies or to get the business going.
Family support matters more than we may realize. Even though some of the loans weren’t substantial amounts, emotional support mattered in most of these cases since it can be difficult for a young entrepreneur to get a business off the ground.
There’s nothing wrong with asking for help. If you’re struggling with business funding, there’s no shame in contacting family and friends for help.
As an average person without the same resources, it’s crucial to remember that you have to utilize the resources that you have available to you. If you don’t come from a well-off family, you can still rely on loans and crowdfunding options to gather resources that will help you build momentum.
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