How the rich differ from the rest
September 5, 2008 – 12:51 amArticle from News.com.au. Nothing really new, but it might a good reminder.
A common definition (of Rich) is a person with at least $US1 million ($1.2 million) in assets not including the family home.
“The rich are normal human beings, but with bigger wallets, and invest in much the same sectors and asset classes - property and shares - as most investors do, but on a much bigger scale,” said Bourke Shaw Financial Services principal Lawrence Orlando.
“There is no desire to have huge holdings in cash or fixed interest investments that have an earning capacity of 4-5 per cent. These asset classes are generally used as short-term parking bays,” he said.
“Wealthy people want to preserve their assets as well as keep building wealth. They are patient accumulators of assets that generate solid income. Within shares, it’s the blue-chip Australian companies with a good track record of growth and paying dividends that are most favoured.”
common characteristics of wealthy people included:
*LIVING well below their means all their lives.
*ALLOCATING time, energy and money to increasing their wealth.
*BELIEVING that financial independence was more important than displaying a high social status.
*THEIR parents did not provide financial handouts.“They are extremely focused and passionate about their business or occupation and about earning strong income from that. They are also driven to live within their means, which enables them to invest on a regular basis,” Mr Grey said.
“I think the real answer to the question about how people become rich is - in my experience - because they have a business idea that they then turn into reality.
“They have the courage to start their business when others want the comfort of a pay cheque, they take calculated risks and they work damn hard to achieve their goals.”
…they have been through market cycles more and expect bad times. They don’t do things with their heart - they react with their head.”
Where the world’s wealthy live
High net worth individuals are those with at least $US1 million of financial assets.
North America ……….. 3.3 million
Europe …………………… 3.1 million
Asia-Pacific ……………. 2.8 million
Latin America ………………400,000
Middle East …………………400,000
Africa ………………………….100,000
Total……………………10.1 million
From the desk of Tradergav.com
And they have a thirst for something more out of life!