Looking for some inspiration on building wealth and financial success?  Thankfully, habits of the wealthy investor aren’t locked behind golden doors. According to the 2016 U.S. Trust Insights on Wealth and Worth survey, most high-net-worth individuals* (HNW) come from middle class or moderate-income families; they weren’t fed from silver spoons. And they share these ten common success traits.

Work Hard and be Ambitious

The majority of those surveyed didn’t come from wealthy upbringings- only 10% gained wealth through inheritance. Most came from middle or moderate-income backgrounds (77%). These individuals earned most of their wealth from hard work and investing over time. Education also has a strong correlation with the wealthy.

72% believe they work harder and 64% consider themselves more willing to sacrifice.

Value Family Upbringing

The wealthy investor prioritizes family values and upbringing. The top five family values most strongly stressed over the years included: academic achievement, financial discipline, work participation, family loyalty and civic duty.

Be Optimistic

If you want to act like a wealthy investor, you have to think optimistically. For example, in the event of a sudden market dip or opportunistic rising trend, about three in five keep more than 10% of their investment portfolios in cash positions.

Pay It Off

When used strategically, credit can be used to build wealth. To start, pay off debts as soon as possible, prioritizing those debts that have the highest interest rates.

Make Tax-Conscious Investment Decisions

Over half of the respondents agreed that assessing tax ramifications in investment decisions is preferable to simply maximizing returns without considering the tax effects. When formulating a sound investment strategy, it’s important to understand the tax rules as they relate to your investments.

Invest Wisely

When it comes to investing success, the wealthy investor has three distinct traits: they have a diversified portfolio, they keep investing fees low, and they are disciplined about rebalancing. They make tax-conscious investment decisions and they invest in valuable tangible assets (48%), including farmland, real estate, fine art, etc. that can produce income over time with legacy value.

83% say that smaller wins, rather than big, bets, lead to greater investment gains. And they track it all- keeping their finger on the pulse of where their money is coming from and where their money is going.

Pay attention to what your investments are doing and react accordingly.

Save Big

81% believe that investing for long-term goals is more important than funding current needs and desires. Disciplined savings is one of the simplest tips on the list. Saving habits of the wealthy investor include generating more cash inflow and reducing cash outflow. It takes careful planning to manage expenses tightly and learn to live below your means rather than within your means. The more you get in the habit of saving, the easier it will become. You can also set automatic savings triggers so you don’t even have to think twice about it.

The wealthy investor knows it’s not about a get-rich-quick scheme, it’s about saving consistently and investing wisely.  Patience and perseverance.

Give Back

Philanthropy and giving back to society is a strong trait of the wealthy investor. 65% have established a strong tradition of philanthropy within their family. 74% donates to non-for-profit organizations, 61% volunteer their time, service or skills and 47% serve on a board.

Prioritize Partnership

Eighty-six have a lifelong partnership or are married. Most have been married to the same person, avoiding the financial setback that often comes with divorce. And when it comes to the laundry, high net worth individuals would rather divide at-home roles and responsibilities including financial and non-financial contributions to family wealth.

Set Financial Goals

As you’re setting financial goals, look at where you’d like to be in two years, five years and even 10-20 years down the road. Determine what your “retirement number” is going to be. That is the number for how much cash and investments you need to achieve a comfortable retirement.

Just be sure to ignore the Joneses along the way; focus on a standard of living that brings you happiness without getting caught up in the competition.

Financial Guidance for the Wealthy Investor

One last detail worth noting is that the majority of the wealthy turn to financial professionals for help managing their investments.

No matter the size of your investment, Hudson Point can help you identify risks in your current portfolio and strategize new ways to mitigate those risks through alternative investment products. Contact us today at 732-321-5244 to learn more.

*The findings above are based on a nationwide survey of 684 high-net-worth individuals with at least $3 million in investable assets.