I’m a Financial Advisor: 7 Money Habits My Richest Clients Live By

Martin Dasko  Wed, August 21, 2024   GOBankingRates

While it’s easy to assume that many rich people came from money, the National Study of Millionaires, conducted by Ramsey Solutions, discovered that 79% of millionaires in America didn’t receive any inheritance from their families. This means that most rich people have to rely on financial habits that will help them build wealth and keep it, instead of receiving it for free.

GOBankingRates contacted two financial advisors to find out what money habits their wealthiest clients live by. Also, find out how a financial can help you, even if you’re not wealthy.

Rich People Think About More Than Just Saving Money

“The wealthy that remain wealthy don’t just save — they save wisely, invest with discipline and keep their costs low,” said Andrew Latham, a CFP and managing editor at SuperMoney. “They play the long game, focus on minimizing taxes and know the value of diversification.”

Rich clients are known for being diligent about their investments. Since there are only so many hours in a day, you have to ensure that your money is working for you when you’re unable to do so.

Latham added, “It’s not just about earning more, but about holding onto it and letting it grow steadily over time.”

They Live Below Their Means

“Many wealthy people live frugally — driving older cars and living in reasonably priced homes,” said Latham. “Nearly 90% of millionaires are self-made, often living in homes under $500,000.”

Many financial experts recommend that you try to save 20% of your pay so that you can plan for the future. Ramsey Personality Jade Warshaw is a proponent of setting aside 15% of your take-home pay for retirement so that you can have your money work for you. Either way, the richest clients are usually those who have embraced some sort of frugality, so they don’t live above their means, ensuring that they can focus on building wealth.

They Track Their Finances

“The richest clients really pay attention to their expenses and track their cash flow closely,” said Taylor Kovar, CFP and CEO of 11 Financial. “This habit helps them make smart financial decisions and spot areas that might need to be improved.”

https://www.yahoo.com/finance/news/m-financial-advisor-7-money-160040498.html