At times most people might feel that they will never get access to the investment opportunities that millionaires do. “Money generates more money” as they say and trying to break into that cycle can be very difficult.
This means that looking to your future, building a secure financial position and saving for yours and your children’s futures can come across as an impossible challenge. To cope with that challenge, we, at Bricksave, are giving people the opportunity to get easy to access to institutional level investments with as little as $1,000.
With the emergence of technology, tools and businesses have been developed to help facilitate secure investment opportunities for all - those tools present useful advantages, though only available to the ones that start thinking like a millionaire and are willing to make the most of opportunities that exist today.
How though are today’s millionaires currently investing their finances and building their wealth? How are they truly exploring the opportunities that technology offers? Here are 4 major tips that will help you getting started with becoming an investor of tomorrow:
1. Be conservative
When people think of millionaires they often imagine expensive yachts and huge extravagance, in reality the opposite is true. Most millionaires are very conservative with their money and often are more interested in reducing risk rather than huge gains. The key is to retain your money and slowly make increases, if something seems too good to be true, then it probably is. If someone offers you a 25% return in dollars over two years then you should be very careful of what the risk level is, you could lose everything all at once.
Millionaires are almost always strategic with the investments they make and according to U.S. Trust, a financial firm in Chicago, 60% of millionaires focus on risk management instead of potential returns.
As Warren Buffet once said:
"Success in investing doesn’t correlate with I.Q. once you are above the level of 25. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing."
2. Diversify your investments
One of the major ways that millionaires reduce their exposure to risk is by diversifying their investments. That way if one of their investments does not do as well, their entire portfolio won’t be affected. There are many ways to diversify, the main two being across different geographies and across different types of investment product.
According to a study by Spectrum group, millionaires invest no more than 40% of their portfolio in stocks and then diversify the rest across other asset classes, such as real estate, equities, and funds.
Again they tend to favor low-risk options and spread them across international geographies.