What, you thought rich people stopped thinking about making money once they reached a certain point? Not likely! Rich people know that there’s always room for growth.
They also know not to keep all their money in one place — the stock market, say, or corporate bonds. Diversifying a portfolio is key to financial success.
Here are a few tactics that wealthy people use to keep their dollars growing. These same tactics work for the not-yet-rich, too. Start earning!
1. They secure their wealth with gold
Gold was the definition of wealth for thousands of years. “The only universal currency” is how U.S. President James Madison described it. Rich people knew that, and they invested in gold.
These days you don’t have to be rich to buy precious metals. With help from a company called Goldco, you can invest for the short or long term.
Gold increases in value over the long term, which is why rich folks diversify their portfolios by putting 5% to as much as 10% of their wealth into gold. But it also tends to do pretty well in the short term, especially when we’re hit by inflation or some other financial crisis.
In the past, everyone wanted gold. These days, everyone needs gold: Modern electronics require gold (and silver) for their manufacture. It’s a pretty safe bet that we’re not going to give up computers, smartphones and other essentials.
You can even open a gold IRA to help secure your retirement savings. Goldco will set one up in strict accordance with federal laws, and store it safely until you’re eligible to take distributions.
Rich people invest in gold for a very simple reason: Gold equals lasting value. Want to learn more? Get your free investors kit now.
2. They invest in million-dollar paintings
Billionaires didn’t become billionaires by making bad investment choices. And billionaires have been collecting art for generations; for example, the Rockefellers amassed a collection that sold for an eye-popping $835 million in 2017.
But it isn’t just the ultra-rich who can invest in art by Banksy, Warhol and Picasso. With a company called Masterworks, you can now invest in iconic artworks as well – right alongside deep-pocketed folks like Bill Gates, Oprah Winfrey and Jeff Bezos.
Sometimes a painting can appreciate beyond all expectations. For example, a work by the late Neo-Expressionist painter Jean-Michel Basquiat rose by 5,286x its original value in just a few decades.
Art also has one of the lowest correlations to stocks that you can find. In other words, art’s value doesn’t have anything to do with the stock market’s volatility, which makes it a good addition to your portfolio.
Invest like a billionaire. Join an exclusive club of fine-art investors here.
3. They steer clear of bad debt
They say that rich people earn interest, while poor people pay it. And they’re not wrong. Rich people know that every dollar they pay in interest is a dollar that can’t be earning more wealth.
Easy for them to say – they’re already rich! The rest of us sometimes end up in debt through no fault of our own, due to issues like unemployment (thanks, pandemic!) or divorce. High interest rates can cause even a modest credit card balance to balloon out of control. Fortunately, a company like Freedom Financial Network can ease the burden of overwhelming debt.
Freedom Financial Network offers multiple options: one of which is debt consolidation. Those who qualify get all their debts combined into one low fixed monthly payment.
The Better Business Bureau gives Freedom Financial Network an A+ rating, and you can gain financial freedom in as little as 60 months, according to the site.
Ready to be debt-free? Get a free, no-obligation consultation.
4. They diversify with real estate
Rich people know commercial real estate is a great investment because people will always need places to live. Fortunately, you don’t have to be rich to invest in commercial real estate: Fundrise lets you get started with as little as $10.
It’s like buying stock in a company. In this case, you’re getting a slice of what Fundrise does: buying and managing apartment buildings and other commercial properties.
This lets you become a landlord without having to do stuff like run credit checks or fix garbage disposals. The potential returns are pretty sweet: Fundrise investors earned an average annual return of 22.9% in 2021.
Fundrise charges only 0.15% as an advisory fee plus 0.85% in management fees. This is a high-return, low-fee way to diversify your portfolio.
Build long-term wealth with real estate. Get started now.
Note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on moneytalksnews.com. All opinions are our own.
5. They don’t throw away their money
Another thing they say is that the rich didn’t get rich by giving away their money. That millionaire next door sees no reason to pay more than they must in order to fulfill their needs and wants.
If you buy without comparing prices, then you are most likely overpaying. Nobody just lucks into the best prices every time. Let Capital One Shopping do comparisons for you, and potentially save you money when you shop online.
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