Manage your money like you want to be rich, not like you already are.
Updated: Jan 30, 2019
Among all the recent articles predicting the imminent demise of the bull market (one of which will be right, someday), was this one:
"What Wealthy People Are Doing With Their Money Right Now, and What That Tells Us About The Market".
I can't tell you what Wealthy People Are Doing Right Now according to this author, because I didn't read the article. Here is why:
1. "Wealthy" can mean: billionaires, people who don't need to work for a living, anyone with more money than me. You will have to be more specific. How did they become wealthy? Did they inherit everything, did they work their way up from the bottom, are they frugal, are they pediatricians? Are they savvy with their money, or did they start with a large fortune and now they have a small one? Unless I know their situation is similar to mine, I'm not interested.
2. Wealthy people (however you define them) aren't any better than I am at predicting the future. Neither are their well-paid advisors.
3. Wealthy people are often primarily concerned with preserving their wealth, not growing it. Their goals are different than mine. They are willing to pay high management fees to lawyers and investment advisors in order to protect their money from capital loss.
4. Wealthy people run out of tax shelters quickly. Their problems are different than mine. They have to find places to put their money, which may include large taxable accounts and complex real estate investments.
5. Last and most important, I don't care what other people are doing with their money. I don't care how they earn it, save it or spend it. I have an investment plan and better things to do. Like, dressing for the job I want, not the job I have: