Who don’t want to become rich? Most of us have dream to become wealthy person. But do we know how this rich people save, spend and invest? Have you ever wondered why some people seem to get rich easily, while others are destined for a life of financial struggle? Is the difference found in their education, intelligence, skills, timing, work habits, contacts, luck, or their choice of jobs, businesses, or investments?
Bankrate.com has wrote about insights on the wealth building habits of the rich at their spending, investing and saving such as :-
The wealthy are living strictly off wages. It allow their investment portfolios to growth. Brent Fykeks, a wealth adviser to ultra-high net worth clients in Jupiter, Florida said that the wealthy taken less risk with savings by not leveraging them and they’ve pulled back on spending.
They set income level and not drawing from investments as the portfolio can recover from the dips.
The success millionaire share three major traits when comes to invest, says Eric Ross financial planning specialist at Truepoint Wealth Counsel in Cincinnati :
– Diversified portfolio
– Investing fees low
– Disciplined about rebalancing
The wealthy people fill their investment with various bucket gaining all the tax advantage.
The wealthy typically underweight or overweight certain asset classes depending on the economic situations.
Saving for wealthy people is pretty straightforward. Katherine Dean, senior vice president and managing director of wealth planning at Wells Fargo in San Francisco give two pronged approach saving by rich people:
– They generate more cash inflow
– They reduce cash outflow
They focus on buying things that will hold value or appreciate in value instead of allowing expenses to eat into savings through continuous consumption. They manage expenses so tightly and living below their means.
The wealth building habits of the rich don’t involve a get rich quick scheme.. It’s a slow, gradual process to accumulate wealth.
Source :- Finance Yahoo