Many people are under the incorrect impression that once you’re rich you’ll be able to stay rich without doing much, this is not the case at all. Everyone knows how difficult it is to get rich if you’re not born into a rich family. It involves a lot of hard work and more often than not, working hard isn’t enough to make you rich. If hard work was all it took to become rich then professions such as doctors and medical staff would be rich as they work round the clock. Becoming rich has a lot more to it, it involves taking lots of risks, including things like risky investments and it requires a lot of confidence when aiming for higher-level jobs with 6 figure salaries, etc. However, becoming rich is only half of the hard work, once you are rich there is a lot involved with holding onto that fortune. If you want to get rich and stay rich then a good way to figure out how to do this is by studying those who are already rich, seeing how they got to their position and what actions they’re making to stay rich. We’ve found some of the most common things rich people do to stay rich.
Some people may wonder how the rich stay rich once they reach the age of retirement and they’re no longer earning a big salary. The reason the rich can manage to maintain their affluent lifestyle post-retirement is that they are smart with their earning and start to save for their retirement from when they’re young. This is a great way to make your money stretch further as if you make pension contributions to an occupational pension scheme then your employer usually matches all of a portion of your contribution, this is effectively increasing your savings. Even if you’re not rich you should be taking advantage of this and planning for your future and as a rule of thumb the earlier you start saving the better thanks to market gains and compounding.
Hire a Professional
There are many qualified people who the rich can afford to hire who provide them with the best advice on how to stay rich. Accountants, tax consultants, and wealth management firms are all great aides for helping the rich to stay rich as they’ll be aware of any sneaky ways to legally avoid tax and retain your earnings. Hiring an accountant is great for anyone who wants someone to look over their finances and provide them with advice, tax consultants are great for anyone who owns a business, and wealth management firms are more aimed at helping the ultra-rich, the best wealth management firms for the ultra rich usually have a team who specialize in different areas so they can provide you with the best advice.
The rich who manage to stay rich almost always have a decent knowledge of what taxes are paid for and what allowances and tax reliefs are available. Most people pay a basic rate of tax but the rich are liable to pay tax at a much higher rate, because of this they’ll always try to reduce their total tax payable a year. There are many ways in which they can do this, there are sometimes government incentives that can be taken advantage of for the rich who own their own company, such as tax breaks for hiring ex-convicts, they can transfer the ownership of assets to their spouse if their spouse pays the basic tax rate and there are many things that qualify for capital allowances that they will definitely be aware of and take into account when making decisions.
Source of Income
Many people get rich from working their way up to the top of a company where they’re paid a 6 figure salary, however, this leaves them in a vulnerable position as if they lose this job and are unable to find another one quickly then they may burn through their savings and be back at square one. The rich who stay rich tend to build several sources of income, their job is likely still their main source of income but to protect themselves they will have other income such as a side business or from buying stock in profitable companies and receiving dividends yearly.
Get Rich Quick Schemes
While many people find these schemes appealing, the rich would not stay rich if they started investing in schemes like these. These schemes are definite to avoid as they are rarely successful, the rich know that there is no shortcut to becoming rich. Instead of investing in schemes like these they’ll be more sensible and put their focus on diversification of assets.