<p>What do all wealthy people have in common (apart from the money)? Since the pandemic hit in March 2020, Google search volumes for stocks, mutual funds, investing etc., have shot up hugely in India and other nations.</p>.<p>The pandemic has broken the monotony of life for most people. Many people have realised the value of savings and wealth.</p>.<p>Yes - a lot of it has been due to the need for savings. Many new investors see wealth creation (making money) possible outside jobs and careers. But let’s take a step back and think about why wealth creation is important.</p>.<p>Inflation, over 10-15 years - can make you significantly poorer, especially if your money is stuck in a bank account.</p>.<p>For example - a savings bank account will give you 2-3% returns post-tax, but if inflation is at 6% - you’re getting poorer by 3% every passing year.</p>.<p>If you see your spending - they have become more and more international. We buy clothes from foreign brands, go to foreign universities to study, and travel abroad a lot more than a decade ago.</p>.<p>Unfortunately, our rupee has fallen by 3-4% every year in the last 20 years. The cost of education in the US has gone up 2.5 times in the last 15 years.</p>.<p>Apart from inflation - a weak rupee also kills your spending power.</p>.<p>So let’s get back to the original question: What do wealthy people have in common apart from wealth.</p>.<p>The answer is ownership!</p>.<p>Every wealthy person out there is wealthy because they own something.Either it’s their own business or other businesses via private investments, mutual funds, stocks, gold, real estate and other assets. Some of the most wealthy employees ultimately use employee stock ownership plan (ESOP) to become wealthy. So far in history, ownership is the only way to financial independence.</p>.<p>Salaries tend to upgrade lifestyles - not wealth. So the people who depend on higher salaries should re-look if that’s the correct strategy. Financial stability comes from a job, but financial independence comes from ownership.</p>.<p>If one’s goal in life is financial independence - then they should have ownership as the topmost priority in life.</p>.<p><strong>How does one start?</strong></p>.<p>Most people tend to spend first and invest whatever is left. The right way is the invest first and then spend later. This ensures discipline and focus.</p>.<p>When investing, it makes sense to diversify across different asset classes, say mutual funds (equity, debt) and real estate and gold. This protects investments in case one asset class performs poorly.</p>.<p>As a thumb rule, the more you touch your portfolio - the poorer it performs. So stay invested in good and bad times (and nobody can predict bad times).</p>.<p>Starting early is important. This is perhaps the most crucial step. Start as early as possible - the earlier you start, the more time you give your assets to compound.</p>.<p>In conclusion - the only common characteristic of the wealthy is ownership. So ensure you start your journey towards ownership.</p>.<p>Ownership will help you become wealthy and protect you from inflation (the silent killer).</p>.<p><strong>Check out the latest videos from <i data-stringify-type="italic">DH</i>:</strong></p>
<p>What do all wealthy people have in common (apart from the money)? Since the pandemic hit in March 2020, Google search volumes for stocks, mutual funds, investing etc., have shot up hugely in India and other nations.</p>.<p>The pandemic has broken the monotony of life for most people. Many people have realised the value of savings and wealth.</p>.<p>Yes - a lot of it has been due to the need for savings. Many new investors see wealth creation (making money) possible outside jobs and careers. But let’s take a step back and think about why wealth creation is important.</p>.<p>Inflation, over 10-15 years - can make you significantly poorer, especially if your money is stuck in a bank account.</p>.<p>For example - a savings bank account will give you 2-3% returns post-tax, but if inflation is at 6% - you’re getting poorer by 3% every passing year.</p>.<p>If you see your spending - they have become more and more international. We buy clothes from foreign brands, go to foreign universities to study, and travel abroad a lot more than a decade ago.</p>.<p>Unfortunately, our rupee has fallen by 3-4% every year in the last 20 years. The cost of education in the US has gone up 2.5 times in the last 15 years.</p>.<p>Apart from inflation - a weak rupee also kills your spending power.</p>.<p>So let’s get back to the original question: What do wealthy people have in common apart from wealth.</p>.<p>The answer is ownership!</p>.<p>Every wealthy person out there is wealthy because they own something.Either it’s their own business or other businesses via private investments, mutual funds, stocks, gold, real estate and other assets. Some of the most wealthy employees ultimately use employee stock ownership plan (ESOP) to become wealthy. So far in history, ownership is the only way to financial independence.</p>.<p>Salaries tend to upgrade lifestyles - not wealth. So the people who depend on higher salaries should re-look if that’s the correct strategy. Financial stability comes from a job, but financial independence comes from ownership.</p>.<p>If one’s goal in life is financial independence - then they should have ownership as the topmost priority in life.</p>.<p><strong>How does one start?</strong></p>.<p>Most people tend to spend first and invest whatever is left. The right way is the invest first and then spend later. This ensures discipline and focus.</p>.<p>When investing, it makes sense to diversify across different asset classes, say mutual funds (equity, debt) and real estate and gold. This protects investments in case one asset class performs poorly.</p>.<p>As a thumb rule, the more you touch your portfolio - the poorer it performs. So stay invested in good and bad times (and nobody can predict bad times).</p>.<p>Starting early is important. This is perhaps the most crucial step. Start as early as possible - the earlier you start, the more time you give your assets to compound.</p>.<p>In conclusion - the only common characteristic of the wealthy is ownership. So ensure you start your journey towards ownership.</p>.<p>Ownership will help you become wealthy and protect you from inflation (the silent killer).</p>.<p><strong>Check out the latest videos from <i data-stringify-type="italic">DH</i>:</strong></p>