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The Top 5 Hobbies of Millionaires & Billionaires Around the World

Recently, I came across an interesting report by Wealth-X, which conducts research about the ultra-wealthy. In this report, they revealed the hobbies, interest and passions of the world’s richest people, and some are actually very different from what we think them to be.

The top 5 hobbies are as follows:

1. Philanthropy

It’s surprising that philanthropy features top in the list of hobbies of billionaires. While giving by the rich is often ridiculed by others (“Probably giving because they feel bad”), giving is a financial discipline that keeps the rich rich, and the not-so-rich to be on the right path to success.

Some ways to give your money:

Give regularly to a cause you believe in.

There are some people who frown upon giving to the poor just because they are poor, or perhaps you don’t have a very good perception toward charity. If that’s the case, find a cause that you believe in, and give regularly to it. Some causes that are worth giving to include humanitarian aid, sponsoring budding artists, supporting the elderly in society, giving to children’s education (or even a partial scholarship).

 

Giving is good for the heart.

The act of giving brings a healthy sense of awareness of where your finances come from; the more you serve and give, the more likely it is that people treat you with respect and have a positive attitude towards you, and your business grows.

Give physical gifts instead of financial gifts.

Some charities allow people to give physical goods instead of money. Doing your research, getting the right contacts, and finding a cause you believe in (and a sustainable one too!) requires patience and some hard work on your part, but it’s a worthy exercise. Although I personally give regularly to several charities, I do not like to publicise it.

 

2. Travel

Rich people travel because… simply because they can afford it. If you do have the spare cash, it makes sense to start travelling while you are on your way to financial success. This keeps you motivated, and you can always upgrade your holidays when your financial stability improves.

But the real challenge for most people is not just the money, but also the time. Given the nature of my job (trading), I have become the go-to person whenever any of my friends want to travel, and over the past few years I have travelled to 50+ countries while still making passive income along the way.

 

Christmas tree + Cape Town Flyer + National Geographic photo frame 😄🇿🇦🎄 #Christmas #southafrica #capetown

A post shared by Spencer Li 🇸🇬 Synapse Trading (@iamrecneps) on

 

3. Art

Art is something that really enriches the soul, and adds flavour to life. And there is a wide range of selection to choose from, ranging from a few thousand to rare pieces that go into millions.

 

Personally, I have taken an interest in this after hunting for some pieces for my new house.

4. Fashion

I’m not much into the fashion scene, but the ultra-rich truly enjoy obtaining unique pieces of clothing.

Bespoke, boutique, and customized clothing are the rage for the ultra-rich.

While I don’t really splurge on costly apparel, I do recommend spending good money on key essentials, like a pair of decent dress shoes for men, or any other piece of clothing that you find to be something you want to pull out once in a while.

I also find that it’s a waste of money to spend on cheap clothing; it’s far more cost-effective to buy quality, reasonably priced products that can last you 5-10 years, than to buy-and-throw most of your wardrobe.

That said, I do enjoy the occasional indulgence, from quality brands like Mont Blanc, Paul Smith, AP, etc 😀

 

5. Politics

When people mention the word “rich” and “politics” together, Donald Trump is the first thing that comes to mind. Other people like Henry Ross Perot, Mitt Romney and Ronald Lauder are also rich people who forayed into the political scene, but with limited success.

 

What are your hobbies?

At end of the day, your hobbies and passion are activities that bring additional job and add colour to your life, so pick something that is fun, meaningful, and something within your means. (Not all hobbies have to be ridiculously expensive.)

On a personal note, my hobbies include hitting a gym (with my trainer), tennis (with my coach), yoga (private noob level class), reading (2-3 books a week), and not forgetting trading (15 mins a day). Oh, and travelling as well. I aim for 2-3 new countries each year. 😀

P.S. If you would like to pick up a useful hobby/skill which can provide you passive income of up to 10% returns a month (verified), do drop by for my next workshop.

6 Little-Known Things that Rich People Do Differently that Give Them an Unfair Advantage

Many people do not realise that small things add up. Like how a small river can cut through rock and form grand canyons, small habits can add up over time to produce vastly different results. This means that quite often, a small change in the way we do certain things can result in huge leaps in improvement. So here are some things that rich people do differently:

1. MAKE MANY SMALL & FREQUENT WINS, NOT A FEW BIG WINS

1

Trading is boring. Ask any seasoned trader in a proprietary fund, and they will tell you the same thing. It’s all about doing the same thing over and over again, and it is surprisingly difficult to do something simple over a very long period of time.

Some of the richest people I know own very humble businesses. One example is the typical food hawker; it’s unexciting, it’s repetitive, but hey, it gives a very stable source of income, week in, week out. It is virtually impossible for good food to become irrelevant to the typical consumer, and hence this source of income is one that will last a long time.

Too bad they ran out of the small lobster bowls, but I’ll definitely be back! 👍😄🍴 #sumoprawnnoodle #prawns #lobsters

A post shared by Spencer Li 🇸🇬 Synapse Trading (@iamrecneps) on

In trading, it’s the same. Small wins add up over time, and instead of being diligent, many aspiring traders choose to take the easy way and just look for that one quick way to make money. Although the news always glorifies the one-hit wonders, like Zuckerberg and other billionaire tech founders, the majority of the rich are not overnight successes, and they know this rule best: small wins add up over time.

 

2. THINK IN % ROI, NOT DOLLARS OF INCOME

Compounding is the way to go. Although you might be nauseating because this is probably the 100th article on the power of compounding, it really works. Just take a moment and think with me:

Nobody would learn trading if you claim to make $10 a day. They want $100 a day, $1000 a day, but forget that it starts with $10 a day.

That’s why most people fail to achieve financial success. They measure monetary success in dollar terms, and fail to consider that ROI is what brings true riches over the long-run.

Thinking in ROI is a very huge barrier for many people, and it actually benefits you because when you finally do make a substantial sum of money, you will still be thinking in terms of ROI and not be overwhelmed by the huge amount of funds on your plate.

I’ve seen many traders do well on small accounts, only to blow up with larger accounts because they have not drilled the ROI concept deep into their minds.

If you can make 3% a month, that’s $30 for a $1000 account, $300 for a $10,000 account, and $3,000 for a $100,000 account. Go figure. If your focus is on % ROI, you will not have an issue growing your wealth quickly.

 

3. STAY AWAY FROM ALL FORMS OF GAMBLING

This point is probably the easiest to write about:

Gambling = negative expectation

Investing/trading = positive expectation

I bet I can stop gambling!”

Gambling gives you hope, which is false and always gets dashed.

Investing gives you certainty, which is true and rewards the skillful.

I think that’s enough said. If you’re gambling for the thrill, treat it as expenses. As a trader I always think in probabilities, so since the expected return from gambling is negative, the rational decision is to not participate at all.

In addition, 1 in 5 gambling addicts attempt suicide. It destroys your family, your friendships, your sense of sanity, and your work ethic. I think it’s enough to let you realize it won’t get you rich; even the seemingly innocent TOTO or 4D that you buy is not a rational attempt for someone to earn big money.

 

4. TIME IS WORTH MORE THAN MONEY

Quite often, people will go to great lengths to save money, for example spending hours hunting around for cheap shopping deals, when all you save for your hours of effort is a mere $10-20. Rich people know the value of their time.

One important question to ask yourself is, “what is the $ value of 1 hour of your time?” If 1 hour of your time is only worth $2, then spending an hour queueing up for free ice-cream might make sense. However, if one hour of your time is worth $200, then taking a $20 cab ride to save an hour of transport will make a lot of sense. You get the idea.

At this point, you might have realised that one if the key ways to increase your net worth is to gradually work your way up by increasing the value of your time. After all, everyone has 24 hours in a day, but the more value you can create in one hour of your time, the higher you will be paid for it, and the higher the value of that hour will be.

 

5. DON’T WASTE MONEY ON CHEAP STUFF – ONLY BUY QUALITY GOODS

It’s sad that most people are thrifty in things that do not matter, but silly when it comes to investments of thousands or hundreds of thousands of dollars. I’ve seen people scrimp on their daily meals, yet when it comes to investments, blow $50,000 on an investment fund they do not understand, or buy into a multi-currency deposit that doesn’t even make sense.

Home purchases, which make up the bulk of most people’s expenditures, tend to be bad decisions. People buy houses that they cannot afford, spend money on renovations that don’t matter, and waste money where it doesn’t bring returns.

1Most people are smart with small sums of money, but unwise on big decisions

Rich people buy things that appreciate in value, while poor people don’t. Electronics generally don’t appreciate in value. If you consider buying electronics, buy quality electronics, and keep them in tip-top condition so that you can resell them at a decent price. And… just because it’s the latest gadget doesn’t mean it’s quality. You’ve got to do your research and think about your purchases if you are serious about your money.

Wine does appreciate in value, and so do quality branded goods. Some Louis Vuitton bags appreciate in value, and it would do you well to consult experts if you are intending to use these products.

Other things that are not worth spending on include:

  • fast food
  • low-quality makeup
  • gifts that don’t really matter
  • alcohol
  • bottled water
  • cheap shoes/clothing that you throw away within 6 months

Yes. It might hurt to read this, but if you need a total personal finance audit, then it helps to do a reality check on yourself.

 

6. LASTLY, RECOGNIZE THAT PERSONAL DEBT IS A SHACKLE

Personal debt chains you from spending on what really matters. In the U.S, many undergraduates end their college years with US$100,000 and above in personal debt. How in the world would they be able to start a family, much less get a home to live in?

In my opinion, the only useful loan is the humble HOME LOAN. Yes, a loan for the house you actually live in, not the house that you would not live in. It is essential to have a roof over your head that you own, because when your business fails, when you lose your job, you still have somewhere to rest and find solace while you sort things out. The worst thing you can find yourself in is having no house, no money, and no one to support you at your lowest moment. Using debt to buy additional houses is a bad idea unless you are a real estate investor by profession and you know what you are doing.

Car loans are unnecessary. Unless you have a dire need for a car, buy the car in cash as much as possible, or just take a taxi everywhere since you can afford it anyway. Credit card loans are the jaws of death for many; stay away from them, and just follow the simple mantra of  spending below your means”. 

Spend below your means, but also look to expand your means.

Too many people get stuck in the “spending below your means” mentality, and fail to consider how they can acquire more sources of income. In fact, having no personal debt frees you to make decisions that allow you to work towards financial freedom, which may require you to have no income for months or years in a row.

 

WHAT SHOULD I DO?

I hope that these 6 tips will get you toward your goal of financial freedom. Keep at it! Remember, if you change your habits, you will change your outcomes. Live like the rich do, and you’ll soon be living the life that the rich do.

Reading this article without putting the tips into practice is like looking into a mirror and forgetting what you look like. It might hurt at the start, but changing the way you live could very well change your destiny!

Wishing you all the best in your journey!

P.S. If you are keen on picking up some investment and trading skills which you can use to generate additional cashflow and grow your wealth more quickly, I will be holding a workshop to share how you can build a portfolio from scratch, and how you can use my 4 proprietary trading strategies to trade any market effectively for more cashflow. Special $25 workshop promotion:  http://wp.me/P1riws-6gw

 

RESEARCH SOURCES & REFERENCES

sbr.com.sg/commercial-property/commentary/state-industry-rise-self-storage-in-singapore
businesstimes.com.sg/hub/property-2016/self-storage-industrial-space-poised-to-expand
nreionline.com/self-storage/self-storage-sector-maintains-steady-growth
alternet.org/how-gambling-can-kill-you-faster-drug-abuse-or-alcoholism
wondergressive.com/20-biggest-wastes-money/