7th Nov 2016
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Seven money secrets of the wealthy
Rich man wearing suit with light bulb

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?

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    COMMENTS

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    mogo51
    15th Nov 2016
    10:40am
    You forgot to mention that they have the necessary funds to avoid tax through trusts etc.
    Lookfar
    15th Nov 2016
    11:10am
    I have known several rich people who have given their children everything, more often than not the children are now greedy ungrateful, don't know how to work, and expect things totally their way. in 2 words, Spoiled Brats.
    They then get this Neo-Liberal thing that only rich people are clever, and when Papa dies they run the businesses they have inherited into the ground, are cruel to their workforce because they regard the workers as "sheep'" and are all round negative members of the world community.
    Rich people, we would all be better off without rich people, even they themselves.
    PlanB
    16th Nov 2016
    6:46am
    Dead right Lookfar, I know quite a few parents such as these and their kids -- now adults are real ungrateful bludgers
    Cowboy Jim
    7th Feb 2018
    12:21pm
    Well Granddad builds it, the Son adds to it and then the Grandson wastes the lot. Quite often happens. In that Lookfar is right.
    Rosret
    15th Nov 2016
    12:04pm
    Always a good message just before Christmas. Watch your spending.....and love your family at the same time.
    Anonymous
    15th Nov 2016
    6:27pm
    great post
    jenwho
    15th Nov 2016
    8:05pm
    Spot on Rosret.
    TREBOR
    16th Nov 2016
    10:52am
    Think I'll go out and invest daily.... how far will $120 take me?

    Just a pertinent comment there - discussing how to boost one's bank balance without the opportunity to do so is like asking a desert dweller in Bourke to swim the English Channel or sail a yacht around the world .... it can be done.... just not right away.....
    TREBOR
    16th Nov 2016
    10:57am
    Leon - you're a Generation X or Y-er, aren't you? I recall not that long ago someone saying to me - "It's only $50 extra!" .... that's kinda like a politician who daily dabbles in $Dillions (that's two steps along from billions and alliterative) decreeing that pensioners don't need an extra $10, since such a small amount is laughable...... (now how about a pay rise equivalent to median incomes for my work in decreeing to the peons, thanks very much).....

    It's all about reality.... not fantasy....
    CindyLou
    16th Nov 2016
    11:44pm
    I have enough of pretty well everything I need - so I don't just spend for the heck of it, so if I see a 'bargain', I ask myself is it a want or a need. Most times it's not a need.
    Watto
    18th Nov 2016
    10:12pm
    Another gem from Della Bosca Geez


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