Smart Money Management
Once a person has become a millionaire, it can take some work to stay wealthy. The first step is to manage the money carefully. Rather than giving in to the temptation to run out and buy expensive cars and a mansion-sized house, the wisest move is to avoid adopting an extravagant lifestyle. Smart millionaires choose their splurges carefully and limit the quantity of large purchases they make. Spending without restraint is the easiest way to cause one's assets to vanish rapidly.
Investments or Continued Income
Simply having a million dollars in the bank isn't exactly enough to sustain you forever. Some millionaires continue to build their wealth by working in a lucrative career, such as being a corporate CEO or a cardiac surgeon. Others who prefer not to work after making their millions might use their money to make investments, which can create profits with very little work. Some millionaires choose to invest their money in the stock market, whereas others buy real estate or other assets that they expect to appreciate. Smart investments can result in millionaires' wealth growing rapidly enough that the millionaire can choose to live a more luxurious lifestyle without the risk that the money will run out.
Millionaires who did not originally make their money by investments, or who lack a strong financial know-how, usually stay wealthy by having a trusted financial advisor who is able to manage the investments in order to grow the money at a rapid enough pace to maintain the millionaire's desired lifestyle. Millionaires who use financial advisors (or money managers) must be very careful who they choose for the role, given that incorrect decisions by a financial advisor can lead to the wealth disappearing.
- Credit Sussie. "Global Wealth Report 2019," Page 11. Accessed April 13, 2020.
- Fidelity Investments. "Fidelity's 11th Millionaire Outlook Study Finds Health Concerns Are Top Stressors For All Investors," Page 1 - 2. Accessed April 13, 2020.
- New York Times. "In Silicon Valley, Millionaires Who Don’t Feel Rich." April 13, 2020.
- William D. Danko, Thomas J. Stanley. "The Millionaire Next Door: The Surprising Secrets of America's Wealthy," Page 9. Accessed April 13, 2020.
Kay Daniels is a freelance writer with more than 10 years of experience writing and editing online. She has a bachelor's degree in psychology from Excelsior College, a certificate in copy editing from University of California, San Diego Extension, and is in her second year of medical school.