Today I found this Survey $25 Million Plus Investors 2012 by Spectrum Groups. The site had some good insights that I would like to share plus I added my two cents. Here are their top five factors:
Being in the right place at the right time. For large investors of $25M or more, being at the right place at the right time was more important to frugality. My two cents: Being at the right place happens probably more than you think. Are you reading up on what is going on in the world? Do you associate with similarly situated and minded folks as your aspiration and your interest? I do agree being frugal is important…no doubt. Living below your means is how you take some income and convert it into investments. This is how you create momentum and with momentum comes the ability to cease an opportunity when the right one shows up.
Ah…the difference between high net worth and ultra-high net worth is the latter ranks taking risker higher than those with with investments less than $25M. Do you know your risk tolerance level? That is going to be important if you are going to leverage risk into your investment strategy.
In a recent study by Spectrum Group, millionaires, regardless of level agreed Smart Investing was the third most important factor. From my perspective, allocating your resources into asset classes and vehicles is such a critical decisions that requires thorough analysis and consideration. If someone tells you it is a good thing and yet you know nothing about it….run away from yourself and your tendencies to give your money to someone else to invest. Knowledge is Power and being knowledgeable about your money and investments is how you win.
Higher Education and Advanced Education is an important factor. I would add to this category that we should include daily reading materials on global/geopolitical, political, and economics in order to stay knowledgeable.
Millionaires, regardless of level, credit their wealth to hard work. I do think, also, the harder your work the luckier you get which loops #1 to #5.
And for me, I have added an extra one…number zero, where it all begins.
Be strategic on what you make, how you spend it and what you invest in. Live below what you need, and be respectful of the economy, it can get shaky and you have to be ready for what it will bring you.