How do the rich build their wealth? Is it as easy as: if you want to be rich, you have to think rich? According to Your Mortgage, who discovered secrets shared by private bankers and financial advisers, setting your mind to it and following these 5 tips so stop thinking and start doing.
1. Build from the ground up
Starting with property or mining, investments that are quite literally ‘ground upwards’, and then diversifying into other investments is just how most of Australia’s wealthiest names have built their empire.
2. Make an effort to stash your cash
Bank deposits and fixed income investments are the most popular ways of the rich, especially those with a great portfolio in mining or who have built a property empire. Since the GFC hit however, some high net worth individuals have generally adopted a more conservative / defensive strategy (yes, bank deposits still do remain the most important type of investment for our wealthiest families).
3. Take the risk
There’s no doubt that since the GFC some of of Australia’s wealthiest are a bit more conservative with their dollars, but this hasn’t stopped them from diversifying into shares, hedge funds, fixed income investments and alternatives (property magnates) or investing in real estate (mining families).
Interestingly, shares remain the highest proportion of high-net-wealth portfolios in Australia, with the next most popular categories being alternative investments, fixed income and real estate.
4. Make good decisions
To make better choices about your financial decisions, you need to be well-educated and informed about the products and markets that you are wishing to invest in. Read online, read books, attend seminars and seek advice from friends and family who may have further insight.
5. Protect yourself
Estate planning and risk protection are also very important elements of building and preserving your wealth. It may not be what we were thinking about or prepared to do, but it will certainly aid in protecting you and your family. Have an up-to-date will and adequate insurance for your assets and income.
Do you want further certainty-based and transparent financial advice to help you move your future plans forward? Give us a call on 1300 893 000 or send us an email at email@example.com to chat further.