Why Do Rich People Keep Investing?
Welcome to the 129th episode of the Alternative Investing Podcast!
In this episode, I will share the five significant reasons why wealthy people keep investing and how you can benefit from them even if you’re still on your way to financial freedom.
- Are You Ever Going to Be Done Investing?
- The Journey Is The Destination
- Enjoying the Game
- How Do You Want to Make an Impact?
- The Anchor
- Final Thoughts
If you’re an investor who wants to learn the real motivations behind why rich people keep growing their money, then make sure to listen to this episode!
02:38 Are You Ever Going to Be Done Investing?
04:20 The Journey Is The Destination
06:30 Enjoying the Game
08:57 How Do You Want to Make An Impact?
10:16 The Anchor
11:35 Final Thoughts
Are you also curious why rich people continue to invest even though they’re already wealthy enough?
You’re not alone. Over the last decade, many people have asked me the same question.
So what better way to answer it than to talk about the real motivations for why they do it?
Now, if you’re thinking, “Well, this hasn’t got anything to do with me because I’m still trying to create financial freedom,” let me tell you one thing: most often, we think of wealth-building as getting from where we are to a certain level of financial independence.
But what if that’s only one part of the game?
Many assume you’re driven by greed or a desire for power if you continue investing after reaching your own version of financial independence.
Maybe for others, that is true. But within my circle, that’s not the case at all.
In fact, there are five significant reasons why wealthy people continue to invest despite having enough money to sustain their lifestyle.Read More
Are You Ever Going to Be Done Investing?
Let’s talk about the first one, which is the idea that “you are never done.” If you see investing as taking care of your wealth, why would you ever stop?
Let me tell you the story of Mark, one of my trusted advisors.
Growing up, he wasn’t born into a wealthy family, so things were a bit tough. But now he has been financially independent for decades, building first-generation wealth. And the reason why he continues to invest is that he wants to leave a financial legacy.
He’s committed to creating wealth that endures long after he’s gone.
If there’s one thing he advocates, it’s the idea that you are never done, and you should never think there’s nothing left for you to do. Even if you reach your goal of passive income and financial freedom, the responsibility to manage and grow your wealth will continue well into the future.
The Journey Is The Destination
When I was at a conference in the US just recently, a mentor of mine, who was also a keynote speaker at the event, mentioned that the journey is the destination.
For all of his life, he’s always been a student of investing. But he never says he knows it all. Out of all the people I’ve met, this mentor of mine is probably one of the most frugal and money-conscious of them.
I can still remember years ago, he and his wife took me out to dinner, and knowing his wealth level, I was expecting that they would turn up in a Rolls Royce or a car that’s quite expensive.
But to my surprise, they came out in a pretty beat-up 20-year-old Mazda or something similar. It was quite a shock to see him driving such an old car.One of the things I noticed about him is that fancy stuff never mattered to him. Instead, he considers the journey of continuously building wealth far more meaningful.
If you embrace the idea that the journey is the destination, you will understand what true wealth really is and stop waiting to achieve a certain milestone to be happy.
Enjoying the Game
The third reason the ultra-wealthy continue to build wealth is that they genuinely love the play.
When I was in New York recently, I was amazed by how enthusiastic one of my trusted advisors was about putting together deals and solving problems when things go wrong.
His genuine enthusiasm for the play of deal-making was very infectious. More than anyone else, his love of the play is why he gets out of bed every day and is looking for like-minded people to play the game with him.
I bring this up because many of the trusted advisors in my network who have a great ability to find deals don’t need our money. They’re looking for like-minded people who also love to play the game.
It’s no secret that finding good deals is essential to success in the world of investing.
But what many people don’t realise is that there is more capital looking for good deals than there are good deals to be found. That’s why it’s so important to have a strong network of trusted advisors you can work and play with.
How Do You Want to Make An Impact?
In my long years in the investing world, I’ve met many investors who’ve reached financial freedom but continue to grow their money because they want to make a significant impact.
After becoming financially free about seven years ago, one investor I know devotes much of his time to philanthropic endeavours. He mentors many people, and he also started orphanages on top of giving sizable donations to his local community.
According to him, we only have a certain number of days on the planet, so it’s very important to give value and make an impact as much as possible with the time you have left.
As much as he loved his practise and his patients as an ex-dentist, he knew he didn’t want to do the same thing every day for decades. So he pursued financial freedom, and now he makes a bigger difference in the world and the people around him.
Many think of retirement as the end game, but many ultra-wealthy people try not to retire at all.
For them, investing becomes a critical anchor to keep their minds active, to give them purpose, and to extend help to others.
Some people think retiring is the best thing that could happen to them, so they try to hit the ground running as soon as possible—only to find out that they’ve got nothing else significant to do with their lives.
In my network of investors, they pursue financial freedom sooner than retirement age so they can continue investing as a hobby and do other things that give them the greatest fulfilment.
Before we end this conversation, I want to remind you again that you are never done as an investor.
There’s always more to manage and a lot to take care of.
Growing your wealth is never easy, but it can help you create more opportunities for the things that matter most to you.
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