“If you’re barely getting by, it may seem crazy to try to emulate a millionaire. After all, millionaires have a ton of money, and you don’t. And while some millionaires used their wisdom and wit to get where they are, there are presumably plenty out there who were born wealthy and had numerous advantages growing up. Don’t be an emotional spender. For instance, maybe fear drives you to spend more than you should, so you stock up on grocery items you don’t need. Or maybe you spend recklessly simply because spending and buying makes you happy. If you understand what your biases are in making money decisions, you have greater insight and are better able to possibly prevent yourself from making financial decisions based upon emotion.”
By Geoff Williams
If you’re barely getting by, it may seem crazy to try to emulate a millionaire. After all, millionaires have a ton of money, and you don’t. And while some millionaires used their wisdom and wit to get where they are, there are presumably plenty out there who were born wealthy and had numerous advantages growing up.
But advice for the rich is often universal, and there’s a lot we can learn from the wealthiest of the wealthy. With that in mind, we tapped some financial advisors who represent millionaires and asked them to share advice they give their clients that also applies to the rest of us.
1. Make your money work for you. Don’t work for your money. In other words, invest in stocks, says Matt Papazian, a financial advisor at Cardan Capital, based in Denver.
Why it matters. Papazian says the wealthiest people generally own their own businesses. “This allows them to generate income or grow assets even when they are not sitting in the office,” he says.
And if you don’t have the resources to start your own business? Invest in one. “The best way to replicate the ownership of a business is by owning securities in businesses that are already in existence. These companies can be selling iPhones, computers, candy bars, detergent, cars – globally, 24 hours a day, seven days a week, and 365 days a year. It’s the next best thing,” Papazian says.
2. Keep an emergency fund. Michael Rose, managing partner with Rose Capital Advisors in Miami Beach, Florida, stresses this to his clients, many of whom are wealthy athletes and entertainers.