10 unexpected things that most truly rich people have in common
Personal finance guru Warren Ingram reckons that most truly wealthy people – those with investments worth over R40 million – have the following 10 things in common:
They built wealth for the long haul. Most of their sizable assets came from earned income and investing.
They’ve nailed the basics. This group didn’t become wealthy by taking significant risks. Instead, 86% of them said their most substantial gains came through buying and holding investments while 89% attributed their largest wins to investing in ordinary shares and bonds.
They’re optimistic (and opportunistic). They are generally very optimistic, and they’re ready to invest when they see an opportunity. One in five surveyed kept more than 25% of their assets in cash, ready to pounce when they see buying opportunities.
They use debt strategically. Nearly two in three use debt to build their wealth but not for lifestyle assets.
They keep a close eye on the Tax Man. They are very attuned to potential tax implications of their decisions.
They diversify by investing in valuable tangible assets. Almost half invest in these assets, including timber properties, investment real estate and farmland. About 20% collect fine art. Importantly, these are for diversification and capital protection, not really for capital growth.
They’re disciplined. About four out of five surveyed said investing to meet long-term goals is more important than making money for short-term wants and needs.
They had strong examples growing up. While the wealthy do not typically come from wealthy backgrounds; their parents did give them a robust set of values. About 80% said they were given these five values: academic achievement, financial discipline, work participation, family loyalty and civic duty.
They love giving back. About two-thirds said their family had a strong tradition of giving back to society.
They’re committed at home. About 86% are married or in long-term relationships.
Listen to the interview in the audio below.
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:
This article first appeared on 702 : 10 unexpected things that most truly rich people have in common
Personal finance expert Warren Ingram (Galileo Capital) on how to raise financially free children.Read More
Bruce Whitfield interviews senior Karatbars representatives, a financial advisor and someone who was invited to its conference.Read More
Most personal finance advisors suggest reducing “risk” a year or two before retirement. Ignore them, reckons Warren Ingram.Read More
Personal finance expert Warren Ingram on how to determine your “financial freedom number”. There's a simple formula.Read More
Personal finance expert Warren Ingram warns that divorce almost always destroys wealth. Here’s how to not lose your money.Read More
You only live once — personal finance guru Warren Ingram on divvying up your income if you're not the budgeting type.Read More
Unless you're über-rich, saving money is a must. But it’s not easy. Arabile Gumede talks to personal finance expert Warren Ingram.Read More
Don’t do it! But if you must, you may want to consider personal finance expert Warren Ingram’s advice.Read More
Personal finance advisor Warren Ingram discusses "dread disease benefits", typically paid out as a lump sum.Read More