Personal Finance

But understanding how the rich make their money may help the rest of us catch up.

We have a mate whose investment strategy is to simply invest in anything James Packer or Gina Rinehart does. He reckons they can afford the best advisers so why not follow them? Not a bad strategy (although he gets caught on timing sometimes). So what are some investment lessons that can be learnt from the rich?

> > Be a wealth creator rather than an investor

Look through the BRW or Forbes (in the US) rich lists and the people listed are generally self-made millionaires/billionaires who have had a good idea and built an empire around it.

They've either started a business from scratch or bought a dud and turned it around. They generally see an undervalued asset, buy it, add value and sell it for a profit.

> > Develop your self-belief

Successful people are self-confident and back themselves. They seem to have a belief that says, "I'm good, I can make this happen".

While the rest of us are full of self-doubt, the rich get in, give it a go and do it.