Many people look at wealthy individuals and think of them as average people with a lot of money. They think of wealth as a level of income. Few people think of wealth as a lifestyle.
But, the difference having a high income has on your life and the choices you make is huge. This is why many people who become a jackpot winner with the lotto often have difficulty adjusting. They now have to change how they spend their time as well as their money. That is if they want to keep the latter. It is all too common to hear of rich individuals who end up losing their money and even wind up in debt.
Carving out an appropriate lifestyle can help you adjust to a high-income lifestyle and protect your income, or increase it.
So, we put together a list of the five most common habits of wealthy individuals. While not all high-income people follow these habits, most successful wealthy individuals will follow most of them. This can give you an idea of how to protect your money and enjoy it with less risk.
Consolidating their (passive) income
This may seem like an obvious habit. Wealthy people stay wealthy by making sure they have enough money coming in. The tricky bit is in how they do this.
The reason for this is the greater return. Investing in the right stocks and bonds in high amounts can create an easy source of passive income. That’s income for doing no active work. However, there can also carry some significant risk when investing in stocks and bonds. That’s why most wealthy individuals will hire advisors to help them manage their investments.
For those unfamiliar, assets are items that can make you money over time. This is particularly true of appreciating assets, which gain value over time, as well as making you money directly. Examples of this include property and investing in profitable businesses.
These are easily the biggest way to consolidate and increase wealth. But, they’re also risky moves, so make sure you have the right people advising you when acquiring assets.
Enjoying (affordable) luxuries
Not everything in a wealthy person’s lifestyle concerns watching their money. Luxuries like designer clothes and watches, cars and events are all enjoyed by wealthy people.
However, an important consideration is whether the above luxuries are affordable. No matter what your income level is, there is always luxuries available. One of the quickest ways to lose your money is to choose luxuries too expensive for your lifestyle. So, make sure your luxuries are always paid for by your assets and passive income, not your savings.
Network with other high-income connections
All those dinner parties and black-tie events are much more than just a fun night out. Networking with other wealthy people allows you to gain knowledge and connections in other high-income areas and industries.
This is invaluable if you’re acquiring assets, or just looking for more clever ways to invest your money. You can also use it as a great way to get more knowledge on how other successful people spend their time.
Continue regular work
Just because wealthy individuals have a range of income streams, this doesn’t mean they give up their day job. In fact, many of them still work in a job they began before they were rich.
Aside from providing another source of income, a regular job has a wide range of benefits. It can keep your mental health in check, and keep you productive. It can also provide a fallback in case you experience financial troubles or your assets don’t provide the return on investment you see hoping for.
In either case, continuing their regular work, or taking up a new job is a surprisingly common habit of wealthy individuals.