Millionaire’s Mindset: How Millionaires Invest Their Money
According to research, millionaires tend to focus more on growing their assets than protecting them, and this is the primary reason why they are investing. Most people, especially financial advisors think that millionaires less worry about things, but actually millionaires are relatively more like non-millionaires. When it comes to the level of confidence for retirement, a significant percentage shows that millionaires around the world are not confident to retire at any age they want. Today, millionaires put their money in a more dynamic and flexible investment options, and their major decisions when it comes to investment may include developing a solid financial plan, taking cash off the sidelines then making an investment, and taking a more international approach to investing. When it comes to investment, millionaires put the majority of their money in portfolio investments, equities, bonds, and real estate, and a small percentage of non-traditional investments.
Millenial millionaires or young millionaires have a common trend in their investing behavior today. Millenials or young millionaires are not just satisfied growing their money, they also want to fulfill their environmental and social goals through their investments, which is now called as “impact investing”. Today, millennial investors consider social impact as their ultimate key to their investment decisions. It is true that impact investing is incredibly hitting the mainstream, hitting the tipping point. New investors choose companies that make an impact in the society in a more positive way. Today’s investing process is now completely integrated with sustainability values. Unlike in the past, non-financial factors now play a crucial role in the financial performance of a company, because as the behavior trend show, a large number of investors and consumers support businesses that prioritize and consider the social impact of what they do as well as the profitability.
Modern investments is not just all about the money as millionaires are more open, flexible, smarter and sensitive to their society and their environment. Many investors believe in the return of their domestic and foreign investments if they consider the social impact and environmental outcomes. This is probably the result of ordinary people’s campaigns protecting the environment, the less fortunate, women and their children, fight against unjust labor, poverty and other relevant social, environmental as well as economic factors, with the influence of social media and other digital technologies providing enlightenment to those who have much.
It is observable that aside from bonds, equities, real estate and other forms of non-traditional investments, millennial millionaires are actively participating hand-in-hand with charitable institutions and businesses engaged in social cause. Whether you are a millionaire, an average earner or a starting entrepreneur, it is always good to consider social impacts as well as environmental impacts of our investments.