A high-net-worth person (sometimes referred to as a HWNI) is a person whose liquid assets are worth more than $1 million. You’re more likely to meet your financial objectives if you can adopt some of the behaviors of existing HWNIs, regardless of where you are in your entrepreneurial path or how close you are to that crucial number.
Here’s a list of five habits of high-net-worth individuals you need to follow today.
Table of Contents
1) Monitor Market Trends
To become a HNWI, you need to start thinking like one. Instead of browsing pop-culture rags over breakfast, review financial sites and check out partner profiles (like this page). And get in the habit of browsing the latest articles in finance. The financial industry is constantly changing and failure to keep your finger on the pulse will mean missing out on key investments required to build your portfolio. Sites like Hubbis are also great for identifying upcoming wealth management and investment conferences in your area.
2) Make Your Bed
When identifying habits of highly successful individuals, research has shown that they typically make their bed every day. So, get in the habit of pulling up the sheets each morning before you jump into the shower! It might seem arbitrary, but it’s not simply the act of making the bed that denotes a successful person. Instead, it’s the discipline required to make positive habits and stick to them.
3) Exercise and Take Care of Your Body
Along the same vein as making your bed, successful individuals prioritise a degree of self-care, with the same study identifying that people who exercised daily (even for just 15 minutes) statistically dominated their more sedentary counterparts in all measures of success. Not only does daily exercise promote discipline, but it has also been shown to increase energy and productivity. With elevated cognitive function, your ability to make sound financial decisions may be heightened.
4) Set Goals
Goal setting is another key habit of HNW individuals. By setting SMART (specific, measurable, achievable, relevant, timed) goals, you can collect meaningful data about how your current habits align with your desired outcomes. For instance, deciding that you want to improve your investment portfolio by 2024 is admirable but vastly meaningless. When 2024 rolls around, how will you determine whether you’ve achieved your aim? Instead, your goal should be measurable, such as “by July 2024, I want my investment portfolio to have increased in value by 20%.” Now, you can truly assess your success in meeting your goal. If you haven’t met it, you can also more easily determine why.
5) Take Risks
As the adage goes, ‘it takes money to make money.’ Successful individuals understand the importance of strategic risk-taking to achieve higher returns. If you’re too risk adverse, you’ll never achieve the heights of someone who is able to carefully evaluate each investment opportunity and determine whether the gamble is worth it.
By following the five habits above, you can put yourself in the mindset of a successful financial professional and increase your chances of becoming a high-net-worth individual.