Millionaire’s Mindset: How Millionaires Invest Their Money
According to surveys, millionaires focus and invest primarily in growing their assets than to protect their assets. Unlike most people and most especially financial advisors think, millionaires are actually similar to 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. In summary millionaires invest their money on portfolio investments, equities, bonds, real estate and non-traditional investments.
Today, millennial millionaires young millionaires have a common trend when it comes to investment. 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, modern millennial investors believe that social impact is their top determining factor in their major investment decisions. Millenials are really so engaged with impact investing, hitting the mainstream and 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. Non-financial factors are greatly considered unlike in the past, playing a significant role in the financial performance of a company, as 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. Many investors believe in the return of their domestic and foreign investments if they consider the social impact and environmental outcomes. This reality is presumably the result of long years when the ordinary people presented protests and campaigns about 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 more in life.
Apart from real estate, bond, equities and non-traditional investments, millionaires of today 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.