Yahoo Finance 5 Financial Secrets of the Super Rich and Famous
Many rich people didn’t become millionaires overnight. It may be generational wealth or decades of long, hard work that keeps them in the 1%. Either way, the super rich and famous have countless secrets that keep them from losing their fortunes.
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Whether they are spending money to build their skills or outsourcing yardwork to save time, the wealthy don’t want everyone to know about the way that they make and keep their money.
Here are five of their financial secrets and how you can capitalize on these pieces of information.
They Invest in Themselves
The Oracle of Omaha, Warren Buffett, regularly advocates investing in yourself. He says you need to make yourself indispensable at your job or offer services that are superior to your competitors. In order to do this, you will have to network, improve your skills, and increase your knowledge. It will take time and money, but in the end, it will be worth it. The more valuable you make yourself, the more in demand you will be.
The rich and famous all invest heavily in things they are passionate about. Former Amazon CEO Jeff Bezos fulfilled a childhood dream of space travel by launching Blue Origin. In 2021, the dream came to fruition as Bezos took a flight to space aboard his company’s rocket. Bezos is one of many famous people who have spent millions (or even billions) on passion projects.
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They Value Their Time
The super-rich know the value of their time. They often spend money on things that make their life easier or more convenient. Whether it is taking a private jet to avoid long waits on commercial flights or hiring someone to clean their home, they don’t mind paying money to free up time in their day.
They Don’t Always Drive Expensive Cars
Another secret that the super-rich and famous often keep is their low-key cars. Not all rich individuals drive the most expensive vehicles. Some of the world’s wealthiest people have been seen driving Hondas and other cars with a price tag that an average person can afford.
Dave Ramsey, a best-selling author and financial expert, is a huge proponent of skipping the bells and whistles that come with a brand-new car. He recommends that people buy used cars. “Buying a used car is always the better choice financially,” Ramsey posted on his website. “Because 1) used cars are less expensive overall and 2) they don’t drop as fast in value as new cars do.”
They Find Ways To Make Passive Income
The ultra-rich usually don’t have a regular 9-to-5 job or a paycheck every two weeks. Instead, they focus on ways to make money that are less involved. The world’s wealthy focus on generating passive income. They want their money to work for them instead of the other way around.
While many people can’t afford to dump millions of dollars into a real estate investment, they can start small. You can take some money to invest in stocks that pay dividends or create and sell an online course. Anything that makes money through little or no continued effort on your behalf can help you move away from living paycheck to paycheck. While it may not make you rich right away, it could pay off significantly over time.
They Take Calculated Risks
Rich and famous people aren’t shy about taking risks, but most of them are calculated. Through their savviness or on the advice of an expert, they carefully weigh investments to ensure that the reward is worth the potential risk.
Unless they are a financial expert, they often work with an advisor or a team of advisors to determine how to invest their money. Rarely does a rich person invest money in a strategy that has not been vetted. They do their due diligence, researching to ensure that they have made the best possible deal. They also don’t necessarily share all of their secrets.
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This article originally appeared on GOBankingRates.com: 5 Financial Secrets of the Super Rich and Famous
