Personal Finance with Warren Ingram

10 unexpected things that most truly rich people have in common

Personal finance guru Warren Ingram reckons that most truly wealthy people – those with investments worth over R40 million – have the following 10 things in common:

  • They built wealth for the long haul. Most of their sizable assets came from earned income and investing.

  • They’ve nailed the basics. This group didn’t become wealthy by taking significant risks. Instead, 86% of them said their most substantial gains came through buying and holding investments while 89% attributed their largest wins to investing in ordinary shares and bonds.

  • They’re optimistic (and opportunistic). They are generally very optimistic, and they’re ready to invest when they see an opportunity. One in five surveyed kept more than 25% of their assets in cash, ready to pounce when they see buying opportunities.

  • They use debt strategically. Nearly two in three use debt to build their wealth but not for lifestyle assets.

  • They keep a close eye on the Tax Man. They are very attuned to potential tax implications of their decisions.

  • They diversify by investing in valuable tangible assets. Almost half invest in these assets, including timber properties, investment real estate and farmland. About 20% collect fine art. Importantly, these are for diversification and capital protection, not really for capital growth.

  • They’re disciplined. About four out of five surveyed said investing to meet long-term goals is more important than making money for short-term wants and needs.

  • They had strong examples growing up. While the wealthy do not typically come from wealthy backgrounds; their parents did give them a robust set of values. About 80% said they were given these five values: academic achievement, financial discipline, work participation, family loyalty and civic duty.

  • They love giving back. About two-thirds said their family had a strong tradition of giving back to society.

  • They’re committed at home. About 86% are married or in long-term relationships.

The Money Show's Bruce Whitfield asked Ingram to elaborate.

Listen to the interview in the audio below.

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
Tax season – it’s here!

Tax season – it’s here!

The Money Show’s Bruce Whitfield interviews Edward Kieswetter, Commissioner at the South African Revenue Service (Sars).

Pieter de Villiers is (yet another) South African taking Silicon Valley by storm

Pieter de Villiers is (yet another) South African taking Silicon Valley by storm

He’s the co-founder of Clickatell, global leaders in application-to-person mobile messaging and mobile transactional services.

How to structure an income/life annuity portfolio for long-term growth

How to structure an income/life annuity portfolio for long-term growth

The Money Show’s Bruce Whitfield interviews Peter Calitz, Certified Financial Planner at Peter Calitz Financial Services.

Investec gives staff unlimited leave days and freedom to wear what they want

Investec gives staff unlimited leave days and freedom to wear what they want

The bank rewards innovation with substantial bonuses and pays according to output not hours at work, says Lesley-Anne Gatter.

How to get a tax refund from Sars

How to get a tax refund from Sars

The Money Show’s Bruce Whitfield interviews Daniel Baines, author of “How to get a SARS Refund”.

You are dying – quite literally – for a paycheque

You are dying – quite literally – for a paycheque

Ian Mann on “Dying for a Paycheck: How Modern Management Harms Employee Health and Company Performance..." by Jeffrey Pfeffer.

Popular articles
Outrage as pastor tells students gay people are 'as bad as Hitler'

Outrage as pastor tells students gay people are 'as bad as Hitler'

Students at De Kuilen High are being offered counselling after being told by Pickard Henn that gay people are going to hell.

I was threatened with a tyre and petrol - Redi Tlhabi

I was threatened with a tyre and petrol - Redi Tlhabi

Journalist says what former president Jacob Zuma said at the state capture commission is bigger than defamation.

[WATCH] Drunk man gets into stranger's car thinking its an Uber!

[WATCH] Drunk man gets into stranger's car thinking its an Uber!

Khabazela shares tweets and Facebook posts that have gone viral.

47% probability of the rand crashing in next 12 months - Rand Merchant Bank

47% probability of the rand crashing in next 12 months - Rand Merchant Bank

The writing is probably on the wall for the resurgent rand. Bruce Whitfield interviews John Cairns, a Strategist at RMB.

'Old Mutual claimed they were the cheapest. They were the most expensive!'

'Old Mutual claimed they were the cheapest. They were the most expensive!'

Personal Finance's retired founding editor Bruce Cameron on his attitude toward money (hopes and fears, successes and failures...)

'Public Protector Busisiwe Mkhwebane made lots of mistakes and simply lied'

'Public Protector Busisiwe Mkhwebane made lots of mistakes and simply lied'

Public Protector Busisiwe Mkhwebane lied and acted in bad faith, the ConCourt ruled. Bruce Whitfield interviews Dr Cathy Powell.

Lion King fan pleads with parents not to take their kids to the cinema at night

Lion King fan pleads with parents not to take their kids to the cinema at night

Khabazela shares tweets and Facebook posts that have gone viral.

'A lot of people may have wanted him dead.'  - Who killed Mark Batchelor?

'A lot of people may have wanted him dead.' - Who killed Mark Batchelor?

A Sunday newspaper report has suggested the soccer ace's death may have been linked to a missing stash of cocaine.

46 women rescued in Joburg sex trafficking raid

46 women rescued in Joburg sex trafficking raid

An expert on human trafficking explains how the syndicate operates and how women are lured into dens.