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While all investing comes with risk, more risk can also mean more reward.
Its no surprise that millionaires understand this concept well.
Despite market swings, the stock market typically yields an average historical return of about 10% per year.
Real Estate
Real estate is another common investment class of the rich.
The idea is that tenants contribute towards their mortgage payments, which can effectively pay off the loan.
Meanwhile, the value of the property can also increase over time, further increasing overall net worth.
Their Own Businesses
Owning and operating your own business is no joke and can also be challenging.
However, if successful, having your own business can also be a vehicle to grow your wealth.
High Level of Financial Discipline
Becoming wealthy requires a very high level of financial discipline.
Relentlessly Investing
Consistent investing over time is crucial to wealth accumulation.
Consider automatic weekly deposits to your investment account and reinvest your dividend payments to buy more stocks.
To add, diversifying your portfolio is key to protecting yourself against market volatility and preserving your wealth.
Financial Education
Millionaires spend time educating themselves on financial best practices.
Increasing your financial literacy is key to building your wealth.
Selling investments quickly also carries a higher capital gains tax compared with holding investments for the long term.
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