Wealth building tips include "work hard" and "educate yourself". It's important to have a budget and stick with it.
With the nearly impossible exception of winning a lottery, there are no shortcuts among wealthy building tips offered by the Ultra High Net Worth investor.
A Spectrem Group survey of UHNW investors with a net worth of between $5 million and $25 million not including primary residence indicated that “hard work’’ was the No. 1 factor in obtaining wealth. If a key ingredient in becoming wealthy is getting a lot of money, the easiest way to do that is through hard work.
The 2013 Spectrem Group study – Changing Investor Attitudes and Behaviprs – asked investors to select the strongest factors in obtaining wealth, and 98 percent cited “hard work” as a reason. Ninety percent cited “education”, 86 percent selected “smart investing” and 78 percent selected “frugality”.
There were three other factors that were selected by at least half of UHNW investors. Sixty-five percent said “taking risk’’ was a wealth building tip, 57 percent said “being in the right place at the right time”, and 54 percent selected “luck’’, which perhaps goes back to the lottery example.
Beyond those factors, there are specific financial moves that can be made by an investor to build wealth.
· Have a plan. An investor cannot just throw himself into wealth-building maneuvers without knowing why they are doing what they are doing. Before the first dime is invested, there must be a written plan of action, so that no time or money is wasted. Know what money you have for savings and the money you have for investing. Have a budget and live within in.
· Invest the time you need. Time is money, and taking the time to work on wealth-building is a key factor. Even if you use a financial advisor, staying on top of current financial trends, and spending time with the advisor to discuss how current events can help in your wealth building, is key to advancing the bottom line.
· Invest in yourself. If you are still working, concentrate on the work, and find a way to maximize your income in the work you do. Concentrate on working toward advancement. Educate yourself so that you are a viable candidate for the job at the next level.
· Cut your expenses when you can, and add to your savings when you can. In fact, this can be a two-step process: cut or reduce an unnecessary expense, then take the money you save and add it to a savings fund.
There are more wealth building tips available from a variety of sources on line, but you can also get the same information and have a discussion about the tips if you work with a financial advisor who understands your financial desires.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.