4 Best Money Lessons From Elon Musk

 4 Best Money Lessons From Elon Musk

Elon Musk, who was still the richest person in the world as of July 10 with a $243 billion net worth, is in charge of a number of businesses. Musk is no stranger to controversy and is renowned for speaking his mind. His projects have caused controversy before, including Tesla, SpaceX, Neuralink, The Boring Company, and most recently, Twitter.

Financially speaking, not everything Elon Musk has done has been perfect. However, four commentaries on Musk's best financial decisions are provided below.

PayPal:An Early Mind for Bold Investing

According to The Wall Street Journal, Musk founded X.com, which was later renamed PayPal, and sold it to eBay for $1.4 billion in 2002. The deal netted him $100 million.

According to Sebastian Jania, owner of Ontario Property Buyers, "one of Elon's best financial moves was placing most of his net worth into Paypal, at a time when the '.com' world was seriously taking off."

After this business prospered, he sold it and received a handsome payout; however, rather than withdrawing from the "entrepreneurship game" and living off the proceeds, he invested his money in three additional ventures that also prospered, according to Jania.

He was able to diversify by using his tech industry successes in the solar, automotive, and space industries, which was a very wise decision. In the event that the tech sector or other industries crashed, this move would have protected him.

Musk Reinvests Profits Into His Visions

According to Anna Koval, co-founder and CMO at Tarotoo, Elon Musk has made billions of dollars from his ventures but doesn't spend all of his profits on opulent lifestyles or frivolous items.

Instead, he puts his money back to work advancing clean energy and transportation and his goal of making humanity a multiplanetary species. This demonstrates his drive, commitment, and long-term perspective, all qualities that any successful entrepreneur must possess.

Koval continued, "Musk is not afraid to take bold and ambitious positions, such as launching rockets into space, building electric cars, and developing hyperloops, because he takes calculated risks and learns from failures.

"He is aware that taking these risks entails difficulties and failures, but he also understands that they are essential for innovation and development. Instead of giving up or settling for mediocrity, he uses his mistakes as learning opportunities to improve his goods and services, she continued.

Musk Is Not Afraid of Out of the Box Ideas

According to Brian Chevalier-Jordan, CMO at NationalBusinessCapital.com, Musk always starts by posing the most fundamental questions, usually in search of cost savings or improved user experiences. Additionally, Chevalier-Jordan continued, by never taking anything for granted, he gains new insights that enable him to manage his businesses more effectively than his rivals.

Chevalier-Jordan advised the rest of us to "question what we've always thought was true about ourselves, our habits, and our behavior around money." "Elon isn't afraid to go somewhere where he has little to no experience, for better or worse. This can produce unexpected insights, such as the notion that if a tunnel is used for public transportation, it might reduce traffic in urban areas. He used that idea to come up with not one,but two, companies: The Boring Company and Hyperloop.

Musk Understands That Branding Is King

Chevalier-Jordan asserts that while Musk may come across as immature to some, that may be a feature rather than a flaw.

"You can't say he isn't enjoying himself while becoming the richest man in the world. He displays his eccentricity in everything from the Tesla feature called Emissions Mode that emits fart noises to the recent cage fight challenge that he put to Mark Zuckerberg. As a result, he has gained the loyalty of those who appreciate his sense of humor. This quality has helped him gain a lasting place in many people's memories, he claimed.

Although Musk is "clearly a king of bombast," Chevalier-Jordan continued, "that doesn't mean he's not savvy with his communications."

His marketing savvy is evident in names like The Boring Company for his tunneling business or Tesla model names that, when put together, spell the word "sexy" (S3XY).

He demonstrated that branding is king by using the phrase "Occupy Mars" to turn Occupy Wall Street into a rallying cry for his rocket company, Space X, Chevalier-Jordan said.