Opinion: How to Invest Your Money Like the Rich: A Guide to Financial Planning for the Future

Daniella Cressman

Disclaimer: This information is accurate and true to the best of my knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

The rich are successful for a reason: They have learned how to manage their money, often creating elaborate systems so that they can stay on track.

We might think they're overly conservative with their funds, or too fussy, but the truth of the matter is that we can, indeed, learn a great deal from the wealthy.


The rich only invest in assets they know inside and out and believe in: They won't support an oil company if that's not what they want to do, and they're often acutely aware of each business's practices when it comes to hiring, compensation, and the like.

They also look at how high the potential returns are for them, and how much risk is involved: Some people invest in dividend stocks if they need cash sooner than later, for instance, while others rely on real estate as a consistent, long-term investment.

It all depends on your priorities, and your timeline: If you need money immediately, you might think differently than you would if you are trying to set yourself and your family up for long-term passive income.

The devil is in the details—that's why the rich study them meticulously before investing.


Many have compared the stock market to gambling.

After all, it is a high-risk, high-reward investment, and it's sometimes hard not to let your fears get the best of you, especially if you have lost thousands upon thousands of dollars.

Inexperienced investors sell their stocks when the markets go down, but the ultra-wealthy know better: They wait it out, buying stocks at a cheaper price and holding onto their assets, knowing that they will likely earn that money back eventually—The stock market offers an average annualized return of 10%.

When it comes to budgeting, the wealthy know that every dollar counts—That's why they can turn $1 into $100.

They view cash differently as a result, so they are surprisingly careful about their spending.

Many of them implement the following strategies:

  • They only pay for their day-to-day expenses and luxuries with passive income
  • They shop at very budget-friendly stores to save a dollar or two
  • They meticulously track every dollar that goes into—and out of—their bank account

Not only do they budget meticulously, but they also diversify their income streams: If they are self-employed, they know that platforms can often be fickle, and their account could be suspended at any moment, so they post content on multiple platforms.

If they work for someone else, they understand that they might get fired or laid off at any given moment, and they prepare for that.

They keep their hopes high and their expectations low; they hope for the best while preparing for the worst.

Although this might seem skeptical, it's actually an extremely smart strategy in today's economy: You want to have multiple streams of income during the best of times and during the worst of times.

If things are going well, it's a lot easier to accumulate wealth if you have multiple inflows of cash.

On the other hand, if one of those streams of income goes away—for one reason or another–you can simply turn to another without having to worry about making ends meet.

The rich may appear cynical at first glance, but they are honestly just realists: They've studied the economy enough to know what to expect, so they've prepared for upward and downward trends alike, protecting themselves financially in the process.

We can learn a lot from them.

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Canadian-American author writing about local politics, personal finance, & dining in Albuquerque.

Albuquerque, NM

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