It’s widely accepted that most millionaires have a different mindset and qualities to the average person. Perhaps the most important difference though is that they control their money rather than being controlled by money.
With that in mind, and with the help of Senior Financial Planner James Ferguson, we have rounded up the 5 top things millionaires do, and what YOU should be doing to boost your personal wealth.
Generally, high-net-worth individuals are entrepreneurial by nature and have a higher risk tolerance than the average investor. They understand the variables involved when taking risks and that generally, the higher the risk means the higher the reward.
That being said, millionaires are not hung up on immediate returns and see each investment as a long-term investment goal.
You will never see a millionaire basing their investment strategy on articles they have read on the internet or something they may have heard on the radio. They understand the value of professional advice and trust the specialism of their adviser. Often, they will have an adviser for each area of their money – whether it be tax, wills or investments. However, in my experience, they are not afraid to challenge advice based on their own knowledge and hold advisers accountable .
Professional advice can be invaluable in enabling you to achieve your goals
High-net-worth individuals invest their money for the long term and are goal-driven in their strategies. They are able to compartmentalise their investments, knowing what they need the money for when. Finally, they make sure that their money works for them - relying on the magic of compound interest!
Much like entrepreneurs, savvy investors tend to make their decisions quickly and on gut instincts. They don’t procrastinate and trust their advisers to do the due diligence once they have made a decision.
Finally, millionaires are masters at diversifying their portfolios. They are more likely to make speculative or non-traditional investments that are uncorrelated to markets. This could be anything from start-ups, private equity or crowdfunding campaigns that can yield higher returns. One thing’s for sure, they most certainly do not sit on cash and do not sit back on their laurels. Even if their investments are doing well, they will always try and find ways to do better.
Having been involved in the banking and financial industry for 16 years, initially working within some of the most prestigious financial institutions in the UK, James relocated to the UAE joining Guardian Wealth Management in 2016. James delivers qualified, UK compliant advice to individuals, families and businesses and believes that whilst life is an ever-changing landscape with constant ups and downs, they can be successfully negotiated with sound, ongoing financial planning.
As an experienced financial adviser with knowledge of both the UK and global advice markets, it’s perhaps not a surprise that he lives by the mantra “if you fail to plan, you are planning to fail”
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