While most of us are struggling to make more money, we often envy the rich and wealthy. Money matters is one of the top areas that many of us worry about. The rich with their seemingly never ending wealth, probably do not have much to be worried about right?
According to a US News & World Report article, the rich do worry about money too.
1. Retirement Funds
[Free Ebook] How should you invest your first $20,000?
We asked 14 Singapore finance bloggers to share what they would do if they could go back in time and invest their first $20,000. They can no longer rewind time, but you can learn from their experience and hopefully start with a better footing.
This is pretty mind boggling, with all that wealth, why do the rich even have to worry about retirement funds? Only thing I can think of is that the richer they are, they more they spend. Without sufficient planning, even the largest funds can rapidly dwindle down in face of excessive spending.
2. Health Concerns
Now this is a valid concern, everybody whether rich or old worries about their health. Many of the rich, successful entrepreneurs probably spend a large part of their on overdrive building their businesses. Due to high stress and bad habits over the years, their health would probably suffer if they continue.
3. Being a Target of a Lawsuit
Over 80% of people worth $20 million do worry about being sued. There are many famous cases where people try to get a piece of the wealthy, through all kinds of accusations. Think Michael Jackson, even after passing away, there are people still trying to suit for his estate.
4. Identity Theft
Just like lawsuits, rich people do end up being potential targets for identity thefts. Especially cases where syndicates make use of fake identities to transfer out large sums of money.
5. Asset Preservation
With a large wealth, these assets are generally prone to inflation risks, if not managed properly. The rich tend to be more concerned with economic trends like interest rates even if they are retired.
6. Falling From The Top
The higher they are, the harder they fall. This is a worry that the many of the rich have as they are often in high positions such as CEOs. A dramatic fall from the top may be extremely damaging to their pride.
7. Worries About Children
Rich people do worry a lot for their children. Many rich kids have grown up being spoilt, without any sense of self worth or achievement. Due to the entitlement mindset, many of them end up squandering all the money left behind by the previous generation. As the chinese saying goes “Fu Bu Guo San Dai” – translating into Wealth Does Not Get Pass 3 Generations.
8. Keeping Up With Peers
We all live in a competitive society and the rich tend to be even more competitive. So there is this self induced stress from trying to keep with fellow multi-millionaires. This is more of a mindset problem than anything, the more you compare, the more miserable you become. So the best is to be feel content with what you have, but if they had that mindset, would they have worked so hard to become rich in the first place?
So when people do not have enough money they worry. When they have too much, they worry as well, but generally for different reasons. A proper financial plan is therefore essential for everybody, no matter their level of wealth to hopefully reduce the stress and worries from money.