How do rich people make money and keep assets? A financial planner has given some insight.
According to Creation Wealth’s senior financial planner Andrew Zbik, there are a number of steps that wealthy people take when managing and adding to their wealth that are “self-evident” – while others may come as more of a surprise to new and first-time investors.
Here are 15 of the actions many wealthy people take, from Mr Zbik’s perspective:
- They will pay for proper advice.
- They outsource tasks they aren’t good at.
- They always have credit or cash available.
- They do business with people they know.
- They aren’t trying to get rich quick.
- They will stick at it – but also know when it is time to cut losses.
- They know how to use loyalty points and such schemes to their advantage.
- Their business provides the cash flow – profits can then be taken to build real wealth in assets.
- They buy business premises.
- They ask questions… and lots of them! They are also not scared to ask silly questions.
- They will refer friends, family and colleagues on to trusted professionals.
- They know that paying tax is good. They also know minimising tax is even better.
- They will invest in what they can control.
- They know their finances intimately.
- They know cash flow is king, and will keep their books updated accordingly.