The Millionaire’s Mindset: How They Invest Their Gold Cash
According to studies, millionaires concentrate more on growing their assets than protecting them, and this is the primary reason why they are investing. Unlike most people and most especially financial advisors think, millionaires are actually similar to 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. 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. When it comes to investment, millionaires put the majority of their money in portfolio investments, equities, bonds, and real estate, and a small percentage of non-traditional investments.
Millenial millionaires or young millionaires have a common trend in their investing behavior 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. It is true that impact investing is incredibly hitting the mainstream, hitting the tipping point. New investors firmly believe that choosing the right companies that make an impact in the society in a more positive way will definitely park their cash up. The investment process practiced by millennials is completely integrated with sustainability values. Unlike in the past, non-financial factors are now playing a major impact on the financial performance of a company, because a large number of consumers and young investors are more supportive of businesses that consider and prioritize not just profitability but more of the social impact of what they do.
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. Whether domestic or foreign investments, millionaires are putting their money considering social impacts 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.
It is observable that aside from bonds, equities, real estate and other forms of non-traditional investments, millennial millionaires are actively participating hand-in-hand with charitable institutions and businesses engaged in social cause. It is just so nice to know that even an average earner or a starting entrepreneur can follow the footsteps of greatest investors who consider their society and their environment.