If you want to be wealthy, you should probably start acting like a multi-millionaire. Here are 4 great habits of the 1%, which have helped them accrue, preserve and grow their wealth. Get the tips here!
CNN Money shares…
Visit the Wild West
Six of 10 multimillionaires say “taking some risk” was key to building their wealth, reports Spectrem, a wealth research firm.
One high-risk investment with potentially big gains, says planner Chris Cordaro: so-called frontier markets, like Vietnam, Sri Lanka, and Kazakhstan. “They have the valuations and growth potential that emerging markets used to,” says Cordaro.
To gain entry, go with an ETF like Guggenheim Frontier Markets (FRN) with big bets on Chile, Egypt, and Colombia and smaller stakes in places like Lebanon and Kazakhstan where it’s difficult for Americans to invest. Plus, it’s cheap, charging just 0.7% of assets.
Scout out deals
“Most millionaires are coupon clippers,” says Thomas Stanley, co-author of The Millionaire Next Door. They’re also deliberate vs. recreational shoppers using a detailed list to save time and money.
“The more time you spend in a store, the more you’re likely to spend,” says Stanley.
Indeed, 72% of those with a net worth between $5 million and $25 million indicated that frugality was one of the top five reasons for the wealth they’d built.
So don’t be above hunting for discounts in the bargain racks, waiting for sales before you buy, claiming loyalty-card rewards, and generally looking for ways to save a buck rather than paying full price.
Readers weigh in: Be like Buffett
“I follow Warren Buffett’s advice: Be fearful when others are greedy, and greedy when others are fearful. It’s a reminder that down days are buying opportunities and nothing goes up forever.” — Brian Frain, Milwaukee, Wisc.
Check out CNNMoney’s Fear & Greed Index
Millionaires tend to live in their homes for a very long time (about half of them for more than 20 years), hold their stocks for long periods, and even stay married longer (only 4% are divorced or separated).
The reward of sticking with it: You don’t lose money to transaction costs and you ride out market slumps, so in the end all of your investments typically pay off.
Get the entire article at CNN Money!
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