Want To Be Rich? Here Are 5 Tips On How To Get There

By Sophia Vida May 25, 2016

So you’re poor, and you hate being poor. Well maybe if you did these five things, you might not be poor anymore.

According to a survey of nearly 700 high-net-worth (HNW) investors released this week by U.S. Trust. (we’re talking invest-able assets of at least $3 million) these folks have a few things in common.

The 2016 U.S. Trust Insights on Wealth and Worth® survey explores who the wealthy are and how they got there and sustain that wealth. When asked what they attribute most to their success, the top three responses were: hard work, ambition and family upbringing.

1. They built their wealth over time. 77% of the people surveyed came from lower and middle class backgrounds with 19% growing up poor. Through income from work and investing, they earned their wealth over time.

2. These people practiced a basic, long-term approach to investing with 86 percent of HNW investors making their biggest investment gains through long-term buy and hold strategies. In other words, traditional stocks and bonds (89 percent) and a series of small wins (83 percent) versus taking big investment risks.

3. They remained opportunistically optimistic. More HNW investors are optimistic than pessimistic about investment returns over the next 12 months. Nearly three in five keep more than 10 percent of their investment portfolios in cash positions, including one in five with more than 25 percent in cash on hand. Their explanation is that by doing so, they could be in a position to invest on a sudden market downturn or rising trend.

4. This one is a no brainer. Use credit strategically. While most of us usually end up maxing our cards out, nearly two-thirds consider credit as a means to strategically build their wealth. Four in five say they know when and how to use credit as financial advantage.

5. Make tax-conscious investment decisions. HNW investors know that real investment returns are really negative returns if they end up swallowed by taxes. Fifty-five percent agree investment decisions that factor in potential tax implications are better than pursuing higher returns, regardless of the tax implications.”