"How Elon become richest man in the earth"- By taking not salary!

 "Why Elone Musk dont take salary"-Elon's beutiful strategy behind this

Whenever we hear about Elon musk we imagine lots of money right. But fun fact is that he don't take salary from his company.so how he became richest person in the world-Let's deep dive into Elon's paying less tax strategy and not take salary purpose 

HOW DID ELON MUSK BECOME SO WEALTHY WITHOUT TAKING SALARY

   Elon Musk is no ordinary CEO, and his approach to compensation is as unconventional as his vision for the future. Unlike traditional executives who receive high salaries and bonuses, Musk chooses not to take a salary at all. In fact, he’s famously known for receiving either no pay or just a symbolic minimum wage from Tesla and other companies he leads. So, what does he get instead? Equity—shares of the company.

Thanks to Elon Musk’s net worth, which is mostly tied to Tesla shares, he can easily borrow billions by using his stock as collateral. For example, if he needs $1 billion, he gets a low-interest loan from a bank without selling any shares. Since loans aren’t income, he pays zero income tax. Later, if Tesla stock rises, Musk can sell fewer shares to repay the loan—meaning he pays back less than what the borrowed money could have cost in taxes. This way, he leverages rising assets to gain cash, avoid taxes, and protect his net worth.

Is it legal?

   Yes,There’s a brilliant reason behind this strategy. By taking stock options instead of a paycheck, Musk avoids taxable income. Salaries are taxed immediately, often at high income tax rates. But shares only get taxed when they’re sold, and until then, they count as “unrealized gains.” This means Musk can accumulate massive wealth without triggering a tax bill. It also aligns his success with that of the company—if Tesla performs well, so does his net worth.

This share-based compensation model not only encourages long-term commitment and growth but also gives Musk the ability to leverage his holdings as collateral for loans, giving him spending power without having to sell stock or pay tax. It’s a smart, legal, and strategic approach used by the ultra-wealthy to build and preserve generational wealth

    One of the smartest financial strategies used by Elon Musk—and many other billionaires—is something most regular people never experience: they don’t take a salary and they don’t sell their shares, yet they still live luxuriously. Instead, they borrow money using their shares as collateral, allowing them to avoid paying income tax and capital gains tax. Let's break it down.

Real-World Example: Elon Musk

Elon Musk, the CEO of Tesla and SpaceX, famously takes no salary. Instead, he receives stock options. As Tesla’s value skyrocketed, Musk’s net worth ballooned into the hundreds of billions. But here’s the trick—he didn’t sell those shares, so he didn’t owe any capital gains tax. In fact, when he needed money, Musk took multi-billion-dollar loans from banks using his Tesla stock as security. Since loans aren’t income, they’re not taxed.

In 2021, Musk confirmed that he financed his lifestyle by borrowing money against his shares. For example, instead of selling $1 billion worth of Tesla stock and paying a potential 20–30% in capital gains tax, he could simply borrow $1 billion at a low interest rate and pay back the loan later—saving hundreds of millions in taxes.

Simple Example for Better Understanding

Imagine you own a house worth ₹10 crores. If you sell it, you might have to pay 20% tax on the profit. But if you borrow ₹5 crores from the bank using your house as collateral, you can spend that money and pay no tax, because a loan is not income. You still own the house, and you can pay back the loan later or refinance.

This is exactly how the ultra-rich legally reduce their tax burden—they grow wealth through assets, not income, and then use those assets to access cash without triggering taxable events. It’s a strategy based on the rules of the system—and it works brilliantly.

Can we are able to use this strategy ?

    In theory, yes—but in practice, this strategy works best for the ultra-wealthy. The key requirement is owning valuable assets, like stocks or property, that can be used as collateral. Banks are more willing to offer large, low-interest loans to people with stable, appreciating assets—something a regular salaried person may not have at a significant scale.

That said, a simplified version is possible. For example, if you own a home or investments, you can take a loan against them (like a mortgage or loan against securities) instead of selling. This helps avoid capital gains tax and keeps your assets intact. However, be cautious—if asset values drop, you still owe the loan.

So while you may not be able to live like Elon Musk, understanding how assets and borrowing work can help you make smarter financial decisions, preserve wealth, and legally optimize taxes in small but meaningful ways.

If you get knowledgh from this follow for more and comment more on which business you want to know more with topics 

THANK YOU