Throughout their lives, most people continue to grow financially – learning lessons, coming across new ideas, demystifying complex ones, and exploring topics they’ve only just discovered. Even when one already has a substantial net worth, it can be helpful at times to look around at what others are doing – particularly those who have been successful at growing and preserving their own wealth. This article dives into seven of the habits that many ultra-high-net-worth (UHNW) individuals possess and share – the ones that help set them apart from others.
They live below their means
One notable habit of many wealthy folks is that they live below their means. In other words, they spend less money than they earn and invest the difference. This may seem like common sense, but in reality, there are many Americans of varying financial means who frequently spend more than they bring in, which tends to eventually cause problems.
They make their money work for them
The ultra-wealthy don’t just let their money sit in a savings account gathering dust. Instead, they invest it in assets that are designed to generate income and grow in value over time. This commonly includes stocks, bonds, real estate, and businesses. By doing this, they’re able to increase their wealth without having to put in long hours at the office.
They take calculated risks
It’s common knowledge that the rich usually invest their money. But they don’t do so blindly. They carefully research each investment before putting any money down and frequently have an exit strategy in mind in case things go south. This disciplined approach to investing helps them minimize losses and maximize gains.
They think long-term
Those with large nest eggs generally realize that building wealth takes time and patience. They don’t usually seek out quick fixes or get-rich-quick schemes. Instead, they focus on making smart decisions today that will hopefully pay off years or even decades down the road.
They diversify their investments
Another habit of many ultra-wealthy individuals is to diversify their investments. This means that they don’t put all of their eggs in one basket, so to speak. By spreading their money across different types of investments, they can help minimize their risk and potentially increase their chances of achieving financial success.
They automate their finances
The wealthy also commonly automate some aspects of their finances so they don’t have to worry about taking care of these financial tasks every month. This can include setting up automatic transfers to savings and investment accounts or paying bills online. By automating some of these actions, they free up their time and energy to focus on more important things.
They surround themselves with like-minded people
Finally, and perhaps most importantly, many UHNW individuals like to surround themselves with people who possess similar mindsets, including family, friends, colleagues, and mentors. In many cases, these like-minded associates provide support, motivation, and advice that can help them ultimately reach their financial goals.
No matter one’s current financial status, opportunities can still arise to learn from and emulate the positive habits of others. In many instances, the super rich have developed ways of successfully managing, growing, and safeguarding their assets. These habits prove that while achieving financial prosperity isn’t always easy, with the right mindset, dedication, and hard work most people can get closer to the lifestyle they want. Learning from those higher up on the financial totem pole – and even from those who are peers – can help some individuals develop better practices themselves. The habits mentioned above aren't just for UHNW individuals – they're available to everyone! CRN-5615229-041023