One Thing Rich People do that we ALL Need to Start Doing Right Now
By now, most of us know that it is wise to put money away in savings, and that we should all be doing this more than we already are. However, saving money is not always easy. One group that has seemingly no problems saving money, however, is the richest people amongst us. The super wealthy seem to have this whole saving money thing down to a science.
This should not surprise any of us, but the reason that the super wealthy are able to put money aside is not simply that they have more of it to play with. A recent survey conducted by the Bank of America U.S. Trust – the division of the bank that manages private wealth – found that a large portion of wealthy individuals actually started the habit of saving money back when they were teenagers. The survey drew data from about 700 people, and was designed to offer insight at the behaviors and attitudes of very rich people. The respondents in this survey had to have a minimum of $3 million in assets, and 30 percent of them have in excess of $10 million.
More than anything, this report shows the discipline and responsible behavior that wealthy people seem to adopt early on in life. On average, the study shows that these folks started seriously saving money when they were around 14 years old. This should not be surprising, as other studies have shown that about half of teenagers in this country have some type of savings account. We must consider the fact that many rich people are born into money. Still, though, the fact that they start to save money early on could be because they have financially responsible people around them more so than any innate ability that they have to make saving money a priority.
However, the study showed something unique with regards to when these people started working for income and investing money in stocks. Most of them started working regularly at 15 and started investing in stocks at 25. These figures are a bit different from the rest of the population, where most folks start working when they are 16. And data from a Fed report shows that just under 14 percent of total U.S. households own any stock at all.
Another interesting thing that can be learned from this survey is just how these people were able to build up so much monetary wealth. Across the board, about 52 percent of their wealth came in via regular income, and 32 percent came in from outside investments. Related studies seem to show that most of this wealth winds up going into savings accounts of one form or another. Published data shows that most households that save only put about 5.4 percent of their money into savings, while the wealthiest one percent of the country manages to sock away as much as 51 percent of their money.
Most of us don’t have the luxury of being born into a lot of money. And the majority of people in this country don’t really take time to learn a lot about finances. However, we can all see that wealthy people clearly value saving money as a lifelong habit – and one that it started off early in life. The rest of us may not be able to save as much as those folks, but we can benefit from the lesson learned and begin to put as much of our income away in savings as possible. That way, we can be prepared for emergency expenses, retirement and maybe even have some left over to pass on to our children one day.