4 Financial Trends Among the Wealthy You Need to Know About

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A recent report revealed useful insights into how wealthy people manage money. Learn how adopting these financial trends can improve your finances. 

Julius Baer Group released its 2023 Global Wealth and Lifestyle Report earlier this year. It contains some fascinating insights into financial trends among the wealthy — or “high-net-worth individuals” (HNWIs), as they’re referred to in the report. Specifically, Julius Baer Group surveyed people around the world with household assets of at least $1 million.

If your own net worth isn’t quite there yet, you may be wondering how relevant this information will be for you. But the major financial trends among the wealthy are all moves that you can implement yourself. You don’t need to be rich to benefit from them. In fact, these trends could help you improve your personal finances and other aspects of your life.

1. They’re investing more

Investing is one of the best ways that people at all income levels can build wealth. By purchasing assets that can increase in value, you’re able to grow your money. The wealthy, in particular, have been accelerating their investments recently.

In all regions of the world, at least a quarter of HNWIs said they invested more during 2022 than in the previous year. The regions that led the pack were Asia, where 67% of respondents reported investing more, and the Middle East, where 73% reported investing more.

What you can do: Bump up your contributions to your 401(k), individual retirement accounts (IRAs), and/or brokerage accounts. A good way to ease into this is by investing 1% more of your income. For example, if you currently invest 10% of your income, raise it to 11%.

If money’s tight, another option is to get a cash back credit card. Use it for all your regular spending, and pay the bill in full every month so that you aren’t charged interest. Then, invest the cash back you earn.

2. They’re prioritizing health and fitness

Jeff Bezos is jacked now. Mark Zuckerberg pals around with professional fighters and practices Brazilian jiu-jitsu. And wealthy people as a whole are doing what they can to stay healthy.

More than half of HNWIs said they’ve used gym memberships in the past year. In Europe and Asia, 1 in 4 exercised almost once a day. HNWIs in all regions also said that they spent more on health insurance so they can have the best possible healthcare, should they need it in the future.

What you can do: Make physical activity a part of your daily routine. The best way to do this is to find something you enjoy, which could be weightlifting, yoga, basketball, or anything else that’s fun for you and gets the blood flowing. It doesn’t have to be an intense, hour-long session at the gym. It could be something as simple as a 20-minute walk.

3. They’re spending more on travel and experiences

It’s not all work and no play for the wealthy. They take time to enjoy themselves, as well, and they don’t mind paying for it.

Julius Baer found that hospitality spending, which includes gourmet meals and five-star hotels, increased in all five regions it surveyed. The frequency of leisure travel has gone up quite a bit, particularly in Asia, Europe, and the Middle East. That increase in demand led to large price increases for hotel suites, fine dining, and business-class airfare.

What you can do: Set aside time for fun activities and experiences. That could mean going out to eat on the weekend, taking at least one vacation per year, or seeing your favorite artist in concert.

Remember that experiences don’t need to be expensive. Plenty of budget-friendly options exist, too, such as inviting friends and family over for a game or movie night. There are also ways to save money on travel and experiences, including using travel credit cards.

4. They’re sticking to stocks and real estate investing

Stocks and real estate have historically been some of the best ways to invest. The stock market has delivered an average return of about 10% per year. Real estate investment trusts (REITs) have done even better with returns of nearly 12% (here’s a breakdown of REITs vs. stocks, if you’re interested in seeing that data).

Julius Baer found that wealthy North American and European investors haven’t changed their portfolios much. They largely stick to stocks and real estate. Wealthy investors in other regions have more diverse portfolios.

What you can do: Keep it simple with your investments. For U.S. investors, stocks and real estate are the most proven options. An index fund that tracks the S&P 500 (an index of 500 of the largest publicly traded companies on U.S. exchanges) is an easy way to invest in stocks and get a competitive return.

For the most part, habits that work for wealthy people work just as well for everybody else. These recent financial trends aren’t hard to follow, and they’re all good habits to adopt for yourself.

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