Seven suggestions that can teach us a thing or two about the secrets of the wealthy.
You may think that rich people think and act differently to the rest of us, and the truth is, they probably do. But many of the world’s wealthiest people worked hard to earn their wealth, and even harder to maintain it. To learn how to make your own fortune, or keep it, it’s best to seek the sage advice of the wealthy, because they’ve proven that they know about money.
Here are seven lessons to be learnt from the wealthy.
1. They look for investments every day
The wealthy aren’t happy with what they’ve got. Well, some are, and in this context, it’s not really a bad thing. The rich are always looking to increase their wealth, so they’re always on the lookout for investments. They always listen to potential opportunities. They’re constantly on the prowl for ways to save money as well as more. Think small – chances are you won’t get rich quick. Be on the lookout for incremental ways you can save or make money and one day, you too may call yourself ‘affluent’.
2. They control their money
Wealthy people stay away from high-risk investments, such as hedge funds and mortgage-backed securities. They stay in control of their money. If the rich don’t understand what they’re investing in, they don’t invest. But they also understand that there is no reward without risk, and are comfortable with taking on a reasonable level of risk to generate a moderate return.
3. They understand that saving is the same as making money
The rich, well the smart ones, don’t spend money for the sake of it. If they can forgo the fancy designer watch, they effectively save money – money which can then be re-invested in other money-making pursuits. Money saved is money they don’t have to earn again.
4. They invest in appreciating assets
Prosperous people don’t waste their wealth on cars and clothes, but instead, invest their money in appreciating assets, such as property, artwork, collectibles, stocks and bonds.
5. They diversify their assets
Putting all your eggs in one basket is a sure-fire way to fail. Money-making website Investopedia says it best: “it is foolish to invest all your money in one investment.”
It’s important to diversify your portfolio, by putting your money into a variety of investments, stocks, bonds and mutual funds. It’s also wise to invest your money in different types of industries, such as food, oil, retail or tech. That way, if one fails, you are still protected with your other investments.
6. They drive a hard bargain
Wealthy people look for the best possible deal in any given situation, and they’re not afraid or embarrassed to haggle for it.
7. They watch every dollar
Have you ever watched a kookaburra on the wire, scanning for its prey? Well, that’s how the rich watch over every dollar that comes in and goes out and, more often than not, it’s how they made their fortune in the first place. It’s also why they’ll most likely stay that way.
In closing …
The truly rich are the ones with the love and respect of family and friends. This is the real measure of happiness. Money isn’t everything, sure, but it can give you the freedom to live your life the way you desire. It also gives you the option of helping your loved ones live their lives comfortably and securely.
So, the point I am making is this: managing money is one thing, but looking after the really important aspects of your life, which are your relationships and your social interactions, should be a priority. Money may, or may not, buy you happiness, but by being good to those around you will make you feel like a rich person regardless of what’s in your bank account. And if you follow these tips, you may find yourself wealthy in a financial sense as well.
Read more at The Daily Telegraph
Do you have any money tips for our members? Well, why not ‘share the wealth’ with our members?