The Millionaire’s Mindset: How They Invest Their Gold Cash
According to research, millionaires tend to focus 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 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. 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. In summary millionaires invest their money on portfolio investments, equities, bonds, real estate and 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”. Today, millennial investors consider social impact as their ultimate key to their investment decisions. It is true that impact investing is incredibly hitting the mainstream, hitting the tipping point. New investors choose companies that make an impact in the society in a more positive way. Sustainability values are now fully integrated with investment processes. 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. Millionaires put their money in domestic or foreign investments 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 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.