Top 6 habits of the super rich
Good news: You may be following some of them already.
A famous Pew Research Center survey from 2007 found that getting rich was the number-one goal of adults ages 18-40. Though there's been a lot of debate since then about the merits of that goal, it's hard to argue with the notion of wanting financial security.
But how does the average investor achieve that goal? What do wealthy people know about money that the rest of us don't?
Here, Mike Levine, a partner at Levine Group, a financial services firm in Brentwood, Tenn., shares his views on the top six habits of the super rich.
#1. Start young.
"Most of the people who have a lot of money recognized the importance of investing from an early age," Levine says.
#2. Pay yourself first.
When budgeting, treat savings and investments with the same importance you do your other crucial bills.
#3. Don't raid your investments.
When you hit a financial speed bump, it's tempting to think that tapping your 401(k) account could make everything better. Think of something else, Levine advises. "Don't use the hardship provisions unless you absolutely have to," he stresses.
The mega-rich seldom put all their eggs in one basket. They typically rely on a mix of investments from a range of different asset classes to help build wealth. Spreading the risk among different vehicles can help you weather downturns in the market.
#5. Forget get-rich-quick schemes.
Take a long-term approach to growing your money. "A lot of wealthy people aren't big on trying to make a killing," says Levine. "They're trying to preserve their wealth."
#6. Identify wealth-building opportunities.
Even the most affluent people use tax-advantaged savings vehicles whether they need to or not, says Levine.
Get help from a financial professional.
Wealthy people protect their assets with help from those with expertise. You can do the same: Financial professionals can help educate investors at any level about their investments and savings.
Don't have a financial professional? We can help you find one.
No investment strategy, such as asset allocation or diversification, can guarantee a profit or protect against loss in periods of declining values.
Not indicative of future results. Results will vary based on the economy and your circumstances.
Mike Levine and Levine Group are not an affiliate of any company of the Principal Financial Group®.
While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered, and is provided with the understanding that none of the member companies of The Principal® are rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.
Insurance products and plan administrative services are provided by Principal Life Insurance Company, a member of the Principal Financial Group® (The Principal®), Des Moines, IA 50392.