When you get rich, maybe you are in level high net worth individuals (with net worth more than $5.000.000). Don’t stop expand and grow your asset and preserve wealth. Some of the rich people in the world are still investing in new sectors too. This action is to find a new business opportunity, and you don’t have to work in that business directly. Let the money work for you and you don’t have to work for money. Those new sector for investing are :
It can’t be denied that everybody wants to be rich and have a lot of money. Even a lot of people working hard in their youth so they can enjoy the result in their old age or in their retired time. A lot of money means have a lot of assets and some money that you have or keep in the bank, but Rich doesn’t always relate to those assets. Rich is more than quality of life. But to keep that richness, some people slacking around. To keep the richness need a long process. If you want to keep the richness and change, use your bonus or assets (stocks, houses, heirlooms, so on) to be long-lasting, so you need to learn how to manage your financial management. Make sure your assets are safe in the economic crisis. Of course, belongings won’t be taken to the grave, but these steps might help you financially healthy, and you don’t have to worry about the economic crisis.
Manage Finance
Do Financial Diversification in all of your life aspects
Diversification not always about how to expand the assets but about how to preserve wealth. Make sure your money invested in every sector, including in stock, bond, property, and cash. Different investments in every sector will react differently to every different event. So if one sector has a loss, you can cover it with a positive performance from other sectors.
- Remember that your risk profile is different than when you build your asset. When your asset is developing, then you will realize the importance of keeping them to keep it survive. Especially if you put your capital in a high-risk investment.
- Understanding the balance of risk and result, you have to realize that higher the result that u can get in an investment, then higher the risk when it is losing. It’s not just about how much money that gone but also about time and effort that you have to let go. For that, you need to discuss related about that problem with your financial planner to balancing the investment. By balancing your investment, it can avoid you from bankruptcy risk, and you can get a good result.
- Liquidity Service. Liquidity is how fast and easy your asset change to be other shapes of an asset. The asset that has high liquidity is cash. Although property like houses is an asset that has low liquidity because you need to wait several times before you can change it to other shapes.even though having a lot of properties can make you rich on paper, but to make it cash, you need time. If you need to able to change your asset to cash in a short time, then the property is not a suit investment for you.
Investment in the new sector
- Angel Investor
Angel investor is an investor that invests his fund once when starting up a business. The fund that is given is 10% of the portfolio. And to be an angel investor, he must have at least $ 1.000.000. investing in this sector is classified as a high-risk investment, but if the startup company could be big like Amazon or Uber, you can imagine how huge profit you can get.
- Support company that you trust. You could invest directly.
Keep Your Money
Live from your income, not from selling nor liquid your asset. Keep your expenses zone to stay on safety and healthy zone. A lot of financial consultants advise you to spend your money a maximum of 4-6% from your liquid asset per year. Don’t sell your asset to shop for a luxurious thing that decreases by time. Even if you buy that thing based on your desire, it’s like cutting your future saving.
Make Budget
How-do-you-get-a-high-net-worth ? one way to make someone with a high net worth is by making their own Budget. Even if you have a lot of money, but keeping notes and budget-making is very important, so your financial balance stays stable and healthy. There are two reasons why the Budget is very important even when you already rich.
First, having the Budget will prevent you have a thought that you have unlimited money. Other than that, the Budget can prevent you from being consumptive behavior. With Budget, you can preserve wealth.
Second, the Budget should be made by anyone to practice the discipline of wealth. The Budget forces you to keep a note on every expense.
Avoid Extra consumption
Buy things that you need, not that you want. You don’t have to buy branded things or expensive things if that just to show up and build an image that you are rich people or someone with a lot of money. Be pennywise to keeping preserve wealth. Rich people don’t have to show off that he is rich.
Prepare a safety net for your asset
If you want to pass down the asset that you have for your family or kids, then you need to think to prepare a safety net for your assets. Consider your heir’s attitude. If he/she is wasteful, then you should put more safety net. When you start to keep the asset safe, you can arrange how is your heritage can be used as a strategy so the asset could be passed on by generations. You could manage that your heritage could be used as an education fund or other purpose. Or the heritage could be liquid for some amount every month. It could be some steps to avoid your heir to spent your asset at once. You could use some professional service for these steps, and when you use this service, you don’t have full power to manage your own assets.
That’s some steps you can use to preserve wealth keep safety and grow safely. It’s not about how much money u have, and it’s about how you manage it by choosing the right step. And you know how to keep the asset as your saving when you retired. This could make you a high-net-worth-individual.
What is considered a high net worth individual?
High net worth individuals a net worth someone with a fantastic amount of money or wealth. This worth net is not included their personal assets like houses, vehicles, and other assets.
In this article, we talk about assets as personal wealth, which could raise your status. Need for you to keep it in the right way. If you want to learn more about real estate finance jobs, please visit our site.
