Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
The Wealthy Don’t Invest Like You Think: Here’s What They Actually Do
Ruby Layram
5th Mar 2025
If you think the wealthy spend their days frantically buying and selling stocks like some kind of Wall Street wolf, I’ve got news for you: they don’t. They’re not glued to stock charts, they’re not jumping on the latest crypto craze, and they’re definitely not taking investing advice from their mate Dave at the pub.
In fact, the way wealthy people invest is far less dramatic than most people imagine—but that’s exactly why it works.
And here’s the best part: you can copy their strategy. You don’t need a seven-figure bank account to start investing like the rich. You just need to understand what they do differently and why it works. Let’s break it down!
1. They Play the Long Game
Most people want to get rich quickly. The wealthy? They want to get richer slowly but surely.
They understand that investing isn’t about making a quick buck overnight—it’s about letting their money work for them over decades.
They don’t panic sell when the market wobbles. They don’t get FOMO when a new meme stock explodes. Instead, they stick to solid investments and let compound interest do its magic.
How to replicate this strategy:
- Stop chasing short-term gains and focus on long-term, reliable investments.
- Invest in assets that grow over time, like stocks, real estate, and index funds.
- Leave your emotions at the door. The market will go up and down, but history shows that patient investors win in the end.
2. They Invest in Assets, Not Liabilities
A lot of people think the key to looking wealthy is spending money on flashy cars, designer clothes, and big houses. But here’s the kicker: real wealth isn’t about how much you spend, it’s about how much you own.
Wealthy people put their money into assets that generate more money. This means they buy stocks, rental properties, businesses, and anything else that increases in value or pays them regularly.
They avoid wasting money on things that depreciate (like brand-new cars) or cost them in the long run (like luxury items bought on credit).
Top tips:
- Before you spend money, ask yourself: Is this an asset that will make me wealthier, or a liability that will drain my bank account?
- Prioritise investing over upgrading your lifestyle.
- Consider buying dividend stocks, rental properties, or even starting a small side business.
3. They Use Other People’s Money (But Wisely!)
Now, I’m not saying you should go and max out your credit cards on stocks (please don’t do that). But wealthy people know how to use smart debt to their advantage. They use loans to buy appreciating assets, like rental properties that bring in passive income, instead of borrowing to fund things that don’t make them money.
They also make the most of tax-efficient investments, business structures, and even low-interest loans to grow their wealth faster. It’s not about taking reckless risks. It’s about making money work harder for you.
Here are a few things to consider:
- If you take on debt, make sure it’s for an appreciating asset, not just lifestyle spending.
- Learn about tax-efficient investing in your country (like ISAs in the UK or Roth IRAs in the US).
- Consider investing in property or starting a business with strategic borrowing.
4. They Stay Boring
You know what’s exciting? Watching a stock skyrocket 500% in a week. You know what’s stressful? Watching it crash the next day.
Wealthy investors don’t chase hype. They invest in boring, reliable assets that grow steadily over time. Think index funds, blue-chip stocks, and rental properties.
Sure, it might not be as thrilling as day trading, but you know what is exciting? Being financially secure.
Here are a few best practices to follow:
- Avoid get-rich-quick schemes and focus on proven strategies.
- If you’re unsure where to start, consider index funds. They’re the easiest way to build wealth over time with minimal effort.
- Stick with investments that have a solid track record of growth.
5. They Don’t Try to Predict the Market
You might think the wealthy have some secret crystal ball that tells them when to buy and sell. They don’t. Even the best investors in the world admit they can’t time the market perfectly.
Instead, they dollar-cost average (investing a fixed amount regularly, regardless of market conditions) and trust in long-term growth. They don’t panic during crashes; they see them as opportunities to buy assets on sale.
How to do it:
- Set up automatic investments each month, no matter what the market is doing.
- See downturns as buying opportunities, not reasons to panic.
- Ignore market predictions and focus on long-term growth.
6. They Keep Learning
Wealthy investors never assume they know it all. They read books, listen to podcasts, and follow expert advice.
More importantly, they surround themselves with people who know what they’re doing such as mentors, financial advisors, or even just friends who invest wisely.
Try this:
- Read at least one investing book a year.
- Follow reputable investors and financial educators.
- Join a community of like-minded investors (whether online or in person).
Wealthy people don’t invest the way Hollywood makes it seem (we’ve all seen Wolf of Wall Street!). They’re not gambling in high-risk trades or obsessing over daily market moves. They build wealth by playing the long game, prioritising assets, using leverage wisely, staying consistent, and always learning.
You don’t need to be rich to start investing like the wealthy. You just need to shift your mindset and follow the principles that have worked for generations.
If you want to stay up to date with all the latest market news and insights, make sure you sign up to the fortnightly MoneyMagpie Investing Newsletter.
This is not financial or investment advice. Remember to do your own research and speak to a professional advisor before parting with any money.
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