Millionaire’s Mindset: How Millionaires Invest Their Money
According to studies, millionaires concentrate 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 millionaires were asked about their level of confidence about retirement at any age they want, surveys show a significant percentage that millionaires around the world are not confident to do it just yet. The major decisions millionaires invest their money include development of a financial plan, investing in products apart from bonds and stocks, taking cash off the sidelines and make an investment, and taking a more international approach to investing. Millionaires invest largely in portfolio investments, equities, bonds, and real estate, and a small percentage of non-traditional investments.
There is a trend among young millionaires or millennial millionaires today. Millennials do not want just want to grow their money, they also want to achieve environmental and social goals through their investments, which is referred to as “impact investing”. Majority of millennial investors think that social impact is the greatest factor in their investing decisions. Impact investing is really hitting the mainstream, and it is hitting a tipping point. New investors believe that choosing the right companies they will lay their money on making an impact in the society in a more positive way, thus earning a greater return on investments. The investment process practiced by millennials is 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.
The truth is modern investors are not just concerned about making and growing their money because they are now more open, flexible, smarter and sensitive to their society and their environment. Millionaires put their money in domestic or foreign investments considering social impacts and environmental outcomes. Indeed, we owe much to ordinary people’s hard work and courage, when they presented protests and campaigns about protecting the environment, providing for the less fortunate, protecting women and their children, fighting 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 more in life.
It can be observed that modern millionaires are engaged and active helping businesses with social cause achieve their success, as well as they work together with charitable institutions for helping the poor and the needy. 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.