6 Things the Rich Do To Stay Rich
6 Things the Rich Do To Stay Rich
Jennifer Taylor Wed, December 15, 2021,
If you’re trying to make more money, studying the rich is a great place to start. Some wealthy people were born into money, while others worked their way to the top. However they got there, many have figured out how to stay rich. Learning how to make millions is one thing, but mastering the art of keeping that fortune intact is a different task. Many people get rich, only to blow through their earnings in a matter of years.
Whether you have come into money or are still figuring out how to get rich, keep reading to learn more about how the rich stay rich.
1. They Avoid Get-Rich-Quick Schemes
One common misconception is that the wealthy constantly look to get richer more quickly through engaging in activities such as picking stocks, said Laurie Samay, who previously served as a certified financial planner and client service and portfolio manager at Palisades Hudson Financial Group. “In reality, the wealthy are typically more interested in preserving their wealth,” she said.
Rather than taking a risk on volatile get-rich-quick schemes, Samay said the wealthy take a slow-and-steady approach to investing, and they focus on diversification. She recommended investing across several asset classes to gradually build wealth.
“Many academic studies have concluded that the mix of stocks and bonds in a portfolio has the greatest influence on performance — even more so than transaction costs and security selection,” Samay said. “Like the rich, your portfolio should be adequately diversified across asset classes.”
Samay said being diversified might include exposure to:
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