Summary List Placement
It does not take long for those of us who work in wealth management to notice certain commonalities amongst our clients. How our clients spend their time, what they prioritize, the things they avoid, etc.
Regardless of background or age, there are four things my millionaire clients do almost universally, and which I believe are the reason they’re able to build wealth (which is hard enough) and stay wealthy (which is harder than it sounds).
1. They maintain a long-term focus on their finances
It is easy to get sucked into day-to-day market swings and financial temptations. The financial media can be a noisy place that advocates short-term focus — whether that be on quarterly earnings, the latest technical chart predictions, or the Federal Reserve Chair’s comments.
While some of those may have meaningful systemic impacts on the market or an individual investor’s portfolio, most millionaires know they need to ignore the short-term chatter and focus on their personalized long-term investment hypothesis and allocation. This prevents them from making emotionally driven mistakes, such as market timing, herding behavior, etc., that can potentially cost them thousands or millions of dollars over the long-term.
Put simply, they have a long-term plan that they keep front of mind when they are making daily decisions.
2. They make a plan, then save and invest accordingly
Some of the least-sexy aspects of wealth-building are saving, investing, and paying off debt before you do anything else. Despite the fact that these things are boring, they are the most surefire ways to achieve financial abundance. They aren’t magic; they simply ensure you are living within your means, building wealth consistently through monthly contributions, and making progress towards your financial goals.
I have always found that my successful clients decide what they want to achieve, how much they need to save and invest in order to achieve their goals in the desired timeline, then structure their lifestyle around that. It also has the super-stealth benefit of meaning you have to save less for retirement because you’re living on a smaller percentage of your income.
3. They invest automatically in the good times and bad
One of the best millionaire secrets is that they often ignore the temporary market swings and commit to investing in the good times and bad. They have determined how much they need to save and …read more
Source:: Business Insider