While it’s unlikely that you or I will ever be a billionaire, there are some things we can learn from how the richest of the rich live their lives. When examining the investing, spending, working, and lifestyle habits of billionaires, it becomes apparent that there are some common factors. We asked four of our writers to shed some light on billionaire habits that you can implement in your life, and here is what they had to say.
1. Willing to take risk
Dan Caplinger: One key trait most billionaires share is that they are willing to take on what many would consider to be huge amounts of risk in order to achieve their financial goals and dreams. When you look at the current ranks of billionaires, you’ll find a substantial proportion of them coming from entrepreneurs who built businesses from the ground up. Although many of these billionaires had financial support from family wealth or other sources that helped reduce the risks somewhat, the eventual success of these business enterprises typically relied on hard work, determination, and the sheer pigheadedness of refusing to accept defeat.
Risk plays a role in everyone’s financial planning. Especially with current low interest rates offering next to no income on low-risk investments, investors have discovered that taking risk is almost a necessity in order to produce the returns they want and need. Although you don’t have to shoot for the moon, as many billionaires did to reach their current success, having an idea of the goal you’re striving to achieve will make it that much easier to gauge your progress and recognize when your efforts have paid off.
By finding a risk level you can tolerate but that will still produce good returns, you can use this billionaire strategy to boost your investment returns over time.