We all have an image in our minds of what the truly rich person looks like, but we probably have it wrong, says leading wealth and financial expert Len Elias of TLK Partners Chartered Accountants.
Wealth Management Specialist Says the Truly Rich Will Shock You
We all have an image in our minds of what the truly rich person looks like, but we probably have it wrong, says Len Elias of TLK Partners. His company specialises in holistic wealth management that ranges through everything from accounting to investment and he says he has an inside track on the truly wealthy and what their lifestyles look like.
The Shocking Lives of the Truly Rich
Picture an unashamedly middle-class-home. The car is serviceable and relatively new, but not flashy. The family looks neat and well-cared-for but isn’t sporting the latest brands in designer-wear. As for the home’s interior, there are more likely to be pets than Picassos. This is how most of Australia’s truly wealthy people live.
“I work with a lot of high-value individuals,” says Elias, “and most of them are people you wouldn’t look at twice if you saw them on the street.”
It’s Not Only What You Have to Begin With
Building wealth doesn’t necessarily mean being born with a silver spoon in your mouth says Elias. Instead, it’s a matter of smart investment that begins as early in your career as possible.
The longer we invest, the greater the rewards. The power of compounding means we get rewards on top of rewards, and the longer we allow it to work for us, the more we gain.
“You can start as an ordinary, middle-income employee and still end up with a high net worth - or you could start out as a high-flyer and still crash and burn. It’s not what you have that matters as much as what you do with it,” says Elias.
Conspicuous Consumerism Comes with an Opportunity Cost
The concept of opportunity cost, says Elias, is easy to understand. If he has twenty dollars, he can spend it on chocolate, but if he spends it on chocolate, he can’t spend it on beer. The opportunity to get beer is sacrificed to get chocolate.
On a bigger scale, the money you used to buy a luxury car and a designer home is no longer available for investment - and if you used credit to get these things, you’ve sacrificed opportunity for many years to come.
“A lot of people mistake conspicuous consumerism for wealth,” says Elias. “It’s not the same thing. In fact, a lot of the possessions that people see as equating to wealth are the opposite of wealth-builders - they depreciate and they’re based on debt and liability rather than being assets.”
If I Were a Rich Man
Accumulating wealth, says Elias, isn’t as far out of the reach of the average person as most of us think and it probably doesn’t involve luxury yachts and Picassos.
“Money management - wealth management - is the key,” he says. “It’s the secure future when you retire. It’s your kids’ education. It’s the legacy you leave for your kids and grandkids. And, yes, it’s a few overseas holidays, some stylish dining out, and a decent car.”
There’s no single wealth-management strategy that’s going to work for everyone. We’re all different, and our approach to money should be tailored to match our lifestyles. TLK Partners, Chartered Accountants and Wealth Management Company is ready to help you investigate the possibilities in your financial future. Visit the TLK Wealth website or call (02) 8090 4324 to find out more.
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This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published.
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