Finance lessons part 31

Why do some billionaires pay themselves just £1 a year? Salary didn't make him rich. Most people miss this. Here's the reason. Josh owns a £10 billion company. Most people expect a huge salary. Millions a year. But Josh does something different. He pays himself £1. That sounds insane. But here's the real point. He doesn't need a big salary. Company HQ. Equity/Ownership. His wealth comes from ownership. For example, Josh owns 30% of his company. If the company grows by £1 billion. His stake grows by £300 million. No salary rise needed. Big salaries trigger big tax. Growing shares are different. Original investment. Growing value. % Tax. He focuses on growing the asset. The company. Most people work for a paycheque. The wealthy work for ownership. Ownership shares. Stock options. Shares owned: 30% etc. Joshua Smith. Signature. Paycheque X. A salary can make you money. Ownership can make you wealthy. x10. x100. Now, here's a question for you. If Josh only pays himself £1 a year, how does he actually get money to spend? The answer is probably not what you think. Watch one of our previous videos to find out.