New

It's not always easy to tell the difference between a millionaire and a billionaire. A million dollars is an impressive sum of money, but it doesn't come close to being a billion. In fact, actually becoming a billionaire is incredibly difficult. To understand just what makes someone a billionaire and how that stacks up to being a millionaire, we need to take a closer look at the numbers. For starters, let's break down the definition of these two terms. Millionaires live in households with at least $1 million in investable assets. This is not counting any homes they might own and only considers the money they have to invest and earn interest on. The most common types of investments are stocks, bonds, mutual funds and cash. Billionaires, on the other hand, are those with a net worth of at least $1 billion (that's 1,000 million). Most billionaires make their money through business or investments and don't actually work for it directly. To be clear, though, it does take some sizeable assets to become either a millionaire or a billionaire. No surprise there. However, the difference between having $1 million and $1 billion is staggering. Number 1: Billionaires can take risks that millionaires simply couldn't. Millionaires are still rich, but billionaires can afford to take risks that millionaires simply couldn't. They could buy their own island or a baseball team (two common billionaire expenditures) while the average millionaire would never even think of such extravagances. Then there's travel: most people save up for years to take their family on vacation to Disney World, but billionaires just charter their own jet and are there in no time. Number 2: Billionaires don't have to work hard - or at all! If the point of working hard is getting rich, then most billionaires are pretty smart. Rather than spending their days working in a cubicle, they can instead put their energy toward the things that matter most to them. Sure, this may come at the expense of making a quick million or two, but it also allows billionaires to then focus on the many other opportunities that life has to offer. Number 3: Billionaires hire managers and investment advisors. Some billionaires are lucky enough to have their own business, but even those who have inherited their fortune typically hire managers to help them continue building wealth. While millionaires need to learn the ropes about investing, it's usually a full-time job for billionaires. That being said, they still do the majority of the investing because they're the individuals with the biggest bank accounts. To Know More, Watch Full Video: