Five Investment Practices That Make The Rich Ultra-Wealthy
Millionaires and billionaires have managed to grow their wealth for a reason; their thought process is not like ours. The things that make them different from us are actually the reasons why they are so successful while we are not. Wouldn’t you love to take a peek in their minds and find out more about the things they are doing right? Well, you can’t do that, so here we have found out a few investment mistakes that millionaires don’t do which have allowed them to accentuate their wealth. Let’s find out what they are!
Limiting Their Investments Only In The US and EU
When we think of investing, we only think of developed countries in the European Union and the USA. It is true that investments made in these countries provide maximum security, but wealthy people tend to look beyond the borders and find which countries have potential for an emerging market where their investments can garner success. Some of the countries where the rich are investing right now are Indonesia, Singapore, and Chile. However, investors must do their own research and assess which countries have emerging markets for investment purposes. It is important to find out whether these countries fit well with your investment portfolio.
Investing In Only Intangible Assets
Investments are synonymous with stocks, shares, and bonds, but investments can be made in intangible assets, too. We often neglect real estates and gold investments, but the truth is that those with high net worths invest in both tangible and intangible assets. They are wise enough to distribute their investments among both types. They understand the value of physical assets which means they have investments in gold, lands, and both commercial and private estates. They also consider artwork and antiques as great investments. According to the rich, assets that are not related to the market at all should feature in everyone’s investment portfolio. These tangible assets might have a higher price tag, but they pay off in the long term.
Investing Only In Public Markets
Another mistake us lesser mortals make is investing 100% in public markets only. However, the uber-rich get a lot of their wealth from private markets. Often, they act as an angel investor in private equity or directly own a business. Private equity investments generate higher returns and should be there in any investor’s portfolio for a diversified account.
Comparing Notes With Their Peers
Unlike us average citizens, uber-rich people do not compare notes with their peers and try to imitate them. Competition can be good for business, but getting caught up in it and trying to do things exactly like your competitor is not a wise thing to do. Instead, wealthy people have their own personal investment goals. Having long-term as well as short-term goals in your investment portfolio works best for you. It is best to draw up a strategy based on where you want to see yourself in 5, 10, or 20 years. Instead of chasing the competition or getting scared of an economic meltdown, they followed their goals and stuck by them. This determination helped them reach their present position.
This is a typical practice found in vogue among non-wealthy people; they are not show-offs as well. Just because the neighbors have bought a big house and a Merc, they won’t take the plunge and do the same. They would rather invest the money in something sensible which might give them a huge return after a few years. They only buy luxuries when they have more than enough in their bank accounts. So just keep in mind that it’s not healthy both for you and your bank account to constantly compare your material things with someone else.
Forgetting To Save
The financial portfolio of uber-rich people does not only have investments, but they also understand the importance of saving as well. So, with a combination of investments and savings, their portfolio is better than most. When they save and invest at the same time, there is a constant inflow of cash, and at the same time, the outflow is restricted as well. This is when their wealth grows in a very short span of time.
Millionaires are just like us. But they have become extremely wise when dealing with money. We may not have the same kind of wisdom or means, but what we can definitely do is learn from them.
More in Business & Investments
The Smartest Passive Income Opportunities You Can Grab This Year
Dire Straits delivered a mega hit song titled “Money for Nothing” back in the 1980s. Four decades later, can you imagine...August 30, 2018
Five Simple Ways To Be Frugal
Are you spending too much these days and need to cut cost? Well, you need to change your habit of overspending...August 28, 2018
These Money Moves Can Completely Mess Up Your Mortgage Application
When you are applying for a mortgage, you should refrain from doing things that would cause your bank to doubt your...August 26, 2018
“Lagom”: What You Need To Know About This Swedish Lifestyle Concept
Borrowing ideas and concepts from Nordic cultures for solving typical American problems has almost become a cottage industry in the US....August 23, 2018
Five Things You Should Start Doing Immediately To Increase Your Wealth
If somebody tells you that they have a get-rich-overnight scheme for you, know that they are simply trying to increase their...August 21, 2018
How NOT To Be A Spendthrift
When is the right time to spend money? This is one question that might have cropped up in your mind time and...August 19, 2018
This Is How Your Laziness Costs You Money
Laziness is one characteristic that can cost anyone heavily. In school or at the workplace, many of us might have paid...August 16, 2018
Top Five Apps For Your Investment Needs!
Investing online has become simple nowadays — all you need is an investment app. Last year, the number of apps downloaded...August 14, 2018
This Is How You Can Save BIG On Your Next Hotel Booking
So you are planning to go on a vacation? Did you book your hotel already? If you haven’t, try to recall...August 12, 2018