Financial Lessons From The Super Wealthy
Andrew Jeffers | March 01, 2018
Can you learn valuable financial lessons from the super wealthy?
Or should I start with asking you: Do you want to be wealthy?
Of course you do.
Some say the secret lies in taking small, responsible steps in the right direction.
Others may argue that wealth has more to do with mindset.
What is the right attitude to achieve your wealth goal?
This is a good question. It’s exactly what we’ll try to find out in this article.
Based on this 2017 wealth report we’re going examine a few financial attitudes wealthy people have in regards to their assets.
What financial lessons can we learn from the super wealthy? Let’s find out…
The wealthy aren’t immune to financial insecurity
This was an interesting finding.
You might be inclined to think one thing rich people have (besides their valuable assets) is financial security. That’s not the case, though.
Let's take a look at some of the factors contributing to their financial insecurity:
Political uncertainty
Potential fall in asset values
Possibility of tax raising
Changes in interest rates
As you can see, even the super-wealthy have their own share of financial stress. The truth is, not matter how many assets you own, there are things you have no control over.
The main cause for financial insecurity -is lack of control.
Here are a few questions that can help you find your financial self:
How do the recent legislative changes to superannuation and pension frameworks affect your financial goals and objectives for retirement?
How would a short-term fall in your investment capital value affect your capacity to accumulate wealth or fund a retirement lifestyle?
With a rise in taxes or interest rates, could you still meet your debt obligations and maintain your current lifestyle?
It’s important to address these questions in order to become financially secure and stable.
The great news is you don’t have to this alone. The best way is getting a finance professional to help and advise you.
You might also be interested in: Do You Talk About Money In Your Family? Three Reasons To Do It
The wealthy want what they want…
This tendency is commonly spread throughout the wealthy - they are accustomed to a certain level of luxury.
The wealthy will get what they want. Usually their “luxury wants” include, yachts, private jets, race horses or sports teams.
What motivates wealthy people to purchase these luxury assets?
The wealth report identifies seven main passion drivers:
Personal enjoyment
Potential for an increase in capital values
Status
Becoming part of a community of like-minded collectors or owners
Diversifying their investment portfolio
Intellectual curiosity
Safe haven for capital
How is this relevant to your financial situation and spending habits?
“Want” purchases are an important component to most individuals’ spending habits.
Here are some “want” purchase examples: buying a new car, concert tickets, a big screen TV, designer clothes or simply eating out.
Identify your passion drivers and how they influence your spending habits.
You might also be interested in: How Much Do You Know About Goals-Based Investing?
Observing other people’s attitudes and behaviours towards money can give you a valuable perspective over how you manage your own assets. Evaluate your own attitudes and behaviour towards money and always be ready to make a change.
I am ready to assist you in determining the right approach to your wealth or retirement planning. Let’s get the conversation going.
