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
'I would take the Prosus shares (25%) as well as Naspers (75%) shares'

'I would take the Prosus shares (25%) as well as Naspers (75%) shares'

Should Naspers shareholders take up Prosus shares? Bruce Whitfield interviews personal finance advisor Warren Ingram.

What is better right now; money in the bank or investing in shares?

What is better right now; money in the bank or investing in shares?

Personal finance expert Warren Ingram offers a definitive answer with an explanation ordinary people can understand.

How to ensure your broker keeps her investment fees low. A case study...

How to ensure your broker keeps her investment fees low. A case study...

Personal finance advisor Warren Ingram chats to The Money Show’s Bruce Whitfield about broker fees.

How to live off a dread disease benefit

How to live off a dread disease benefit

Personal finance advisor Warren Ingram discusses "dread disease benefits", typically paid out as a lump sum.

How to best save and invest for your children

How to best save and invest for your children

Personal finance advisor Warren Ingram has advice for parents wanting to ensure an excellent education for their kids.

How to make your first R1 million (after that it just becomes so much easier)

How to make your first R1 million (after that it just becomes so much easier)

Rich. Wealthy. Financially free... Call it what you will; the first million is how you get there. Warren Ingram on his book...

Popular articles
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.

You made a huge mistake downloading FaceApp if your privacy is important to you

You made a huge mistake downloading FaceApp if your privacy is important to you

Washington Post technology columnist Geoffrey A. Fowler did a forensic analysis of the Russia-based app. Check it out.

Been caught speeding in the past few months? You'll want to read this...

Been caught speeding in the past few months? You'll want to read this...

Cases involving a particular speed-measuring device have been thrown out due to questions over the reliability of the device.

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.