Rich people know about money.
They know how to make their money grow. They know how to make their money work as hard as they do.
Rich people never have to wonder where the heck all their money’s going. They just seem to know this stuff somehow.
What do they know that we don’t?
Here are some good places to start. They won’t all work for you, but some will. So be sure and check them all out.
1. Rich people invest in real estate
Real estate has long been a path to wealth. But you need to be wealthy to get started, right?
Wrong. For as little as $10, Fundrise can get you started. Fundrise lets you buy into real estate properties the same way stocks let you buy into companies.
In effect, you’re a landlord without having to run background checks or serve eviction notices. While it’s not a guarantee of future results, Fundrise investors have earned an average of 25% within three years; if they held on for five years, the increase was more than 50%.
People are always going to need a place to live – and recent rent jumps make real estate investing more profitable.
Take two minutes and check it out.
Note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on moneytalksnews.com. All opinions are our own.
2. Rich people get a second set of eyes
How do the rich grow their money? By working with a professional, that’s how.
One Vanguard study found that, on average, a hypothetical $500,000 investment over 25 years would grow to $1.7 million if you manage it yourself, but more than $3.4 million if you work with a financial adviser. That’s twice as much!
If you’ve got at least $100,000 in investments, check out a free service called SmartAsset. You fill out a short questionnaire and instantly get matched with up to three vetted financial advisers in your area, all legally bound to work in your best interests.
Even if you don’t want help picking investments, an adviser can help lower your tax burden, create a comprehensive financial plan for you, maximize your Social Security, and serve as a second pair of eyes to make sure you’re on the right track.
Please carefully review the methodologies employed in the Vanguard white paper, “Putting a value on your value: Quantifying Vanguard Advisor’s Alpha.”
3. Rich people hedge their bets
One way wealthy people protect their savings is diversification. They keep money in different types of investments: ideally, ones that can go up when others are going down. For example, stocks tend to do poorly when inflation and interest rates are rising, or there’s political turmoil brewing.
But there’s one investment that thrives in this scenario: gold. And you don’t have to be wealthy to own some.
Be careful who you deal with, though. Lots of companies in the gold business are pretty shady and won’t hesitate to overcharge you.
Goldco, on the other hand, has an A+ BBB rating, an AAA rating from Business Consumer Alliance, and 4.8 to 5 stars on Trustpilot, TrustLink, Google Reviews and ConsumerAffairs. They offer just about everything, from precious-metal IRAs to gold coins and gold bars.
You’ll even receive up to $10,000 in free silver on qualified purchases. If you’ve ever thought about investing in gold, why not take a look?
4. Rich people don’t overpay for things
If you’re like most Americans, you’re probably paying too much for car insurance. But shopping around for a better deal is such a hassle.
Well, it used to be.
Now you can just check out Provide Insurance, the largest online marketplace for insurance in the U.S. Provide Insurance lets you compare quotes from more than 175 different carriers in minutes.
All you have to do is answer a few questions about yourself and your driving history. Then Provide will show you the best options for your needs and budget.
You could save up to $610 a year on car insurance by using Provide Insurance. That’s money you could use for other things, like investing, saving or paying off debt.
Don’t let your current insurer overcharge you. Try Provide Insurance today and see how much you can save on car insurance.
5. Rich people leave a legacy
There’s nothing you wouldn’t do for your family, right? Well, if something happens to you, who’s going to pay the mortgage or college bills? This is why life insurance is so important.
Not everybody needs life insurance. If your kids are grown and you have a nice, fat bank account, there’s really no need. But if your family would have a hard time getting along without you, life insurance is definitely something you should look into. Just don’t pay too much for it by buying the wrong kind, or buying from a commissioned salesperson.
Shopping for life insurance used to be a long, complicated process. Now? Not so much. For example, Ethos is a company that lets you apply online in minutes without getting off the couch. There are no medical exams, no blood tests. You can get term life insurance ranging from $20,000 to $2,000,000. And it may cost as little as $7 a month: less than you might be spending now on coffee.
Simply answer a few online health questions and get a personalized quote in less than five minutes. This could be the most important thing you ever do for the people you love.
And Ethos is rock-solid: They’ve protected more than 100,000 families and provided more than $34 billion in coverage. So, why not check it out?
6. Rich people plan ahead
Here’s hoping that your retirement years are active, healthy and vibrant and that you’re able to function as you always have, right up to the time you shuffle off this mortal coil.
But don’t bet on it. According to the U.S. Department of Health and Human Services, 7 in 10 people who turn 65 today will probably need some kind of long-term care.
Think you can’t get long-term care (LTC) insurance after age 40? Think again. GoldenCare writes LTC coverage for most people. (Unless they live in the four states where GoldenCare doesn’t operate: Alaska, Florida, Hawaii and Washington.)
“But won’t Medicare take care of all that?” Nope. Medicare doesn’t cover long-term custodial care — and paying for it out of pocket could take a huge chunk of your retirement savings. That plus inflation could mean near or total depletion of your nest egg.
Without LTC insurance, your options aren’t great: running through savings, borrowing money, burdening your family with your care, and possibly losing independence because you can’t live on your own.
It’s impossible to say whether your current health will stay good. That’s why investigating long-term care insurance is so important: It protects you and your family.
It’s at least worth checking out, right?
7. Rich people use this secret source for discounts
Are you over 18? Then you’re eligible to save hundreds every year simply by joining AARP.
“What?” You say, “I thought AARP was for old, retired people.”
As it turns out, you don’t have to be 50 to join AARP. And members get discounts on hundreds of things, like:
- Up to $200 per person off flights
- Up to 30% off rental cars
- Up to 15% off restaurants
- Up to 20% off hotels
You’ll also save on eyeglasses, prescriptions, meal deliveries and lots more. And that’s not all. AARP offers a Fraud Watch Network, job listings, retirement planning tools, games, and tons of information, programs and resources.
Anyone trying to save money can’t afford not to join AARP, especially since the cost is as low as $12 per year with auto-renewal. You’ll likely recoup the cost in the first week.
They even give you a free gift to sign up!
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