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Arnold Schwarzenegger built a fortune long before becoming one of Hollywood’s most recognizable stars. While his acting career brought him international fame, the Austrian bodybuilder also developed a business side that allowed him to generate income outside the entertainment industry.
Over the years, the Terminator star has shared some of the principles that guided his financial decisions and his first investments. In an interview, he summed up his philosophy with a blunt line: “You have to know how to turn one dollar into two.”
His strategy was not just about making money, but about learning how to multiply it through business and investments.
What Arnold Schwarzenegger’s strategy was for turning one dollar into two
Arnold Schwarzenegger said that when it came to investing in real estate, he had two main goals: to multiply his money and to take part in projects he found interesting. In an interview with Tim Ferriss, the actor summed up that philosophy in one phrase: “You have to know how to turn one dollar into two.” He also said he was not interested in buying land and waiting years to sell it for a higher price.
Instead, he preferred to get involved in property development, since, according to the actor, his strategy was to buy land, design projects and build apartment buildings, office buildings or shopping centers. To carry them out, he looked for partners with whom he could move the investments forward, so he was not limited to waiting for the property value to rise, but was actively involved in creating new businesses.
How he used that philosophy to build his fortune before making it big in Hollywood
Schwarzenegger began investing in real estate in the 1970s, when he was still working in bodybuilding and had not yet achieved major success as an actor. To raise capital, he took business classes to learn how to manage his investments, saved money from his seminars, exhibitions and jobs, and also used income from a mail-order training program business.
In the interview with Cigar Aficionado, Schwarzenegger said he raised $27,000 and borrowed another $10,000 to buy his first building, which had six apartments and cost $240,000, and that he sold it two years later for $390,000. From that first deal, he kept buying properties and expanded his real estate investments.
In that sense, the actor said that this activity allowed him to become a millionaire before his film career took off, since his goal was to reach financial independence so he would not have to take just any role for the money.