Smart Money Lessons from the Very Wealthy

Smart Money Lessons from the Very Wealthy

Core Facts

 [ What is this? ]


We believe that when someone shows success in a field, we could learn a thing or two from them. A master craftsman knows how to create beautiful objects, and a professor with a doctorate degree can teach his students well. This idea holds true in the field of finances too -- those who have made a lot of money know things that could help the rest of us do better.

According a recent survey by U.S Trust of 700 high net-worth individuals, there are some things they have in common, and they’re things we should all be doing:

  1. Take the long view. Instead of chasing every shiny new toy and wanting it right now, plan for the future. Separate your needs and your wants. You have to cover your needs but be willing to wait to get what you want. Shift your viewpoint from saving only what is left over, and make saving the first priority. Experts say that this alone could change your financial situation.
  2. Use credit wisely. Most wealthy people have a healthy respect for credit. They know how and when to use it to their advantage. One way is to use a rewards card for items you’d purchase anyway, then pay it all off at the end of the month, and reap the rewards. Another smart move is to pay your mortgage or a student loan that has a low interest rate over time, and use the extra money to fund your retirement plan.
  3. Take the sensible middle ground of investing approach. 89% of the wealthy individuals polled in this survey said that their biggest financial gain had come from investments they held on to for many years. Financial experts agree that you may be able to make money by owning stock in good companies for long periods of time.
  4. Make tax-conscious investment decisions. There are tax-advantaged retirement plans like a 401(k) or IRA, or saving for your child’s college in a 529 plan, or socking money away into a flexible spending account.
  5. Diversify your investment with tangible assets. Instead of putting all your investment eggs in one basket, it’s wise to have a diverse portfolio. One way to diversify is to invest in something physical – like real estate or energy. These investments may produce income and grow in value over time.  

Take notes from these 700 millionaires, and start putting these smart money lessons in place.  They could make a difference in your net worth. 



Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. 

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC


^ Top


Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website:

^ Top


Jake Mendlinger
Account Manager
516.829.8374 X 232

^ Top