Most people think that getting rich is difficult. I do not really disagree, but staying rich is far more difficult. Many salaried people without much of a wealth attitude do not get into that wealthy attitude and ability to stay rich. It is far more difficult to manage your money than to earn it.

I have seen a lot of very well paid people not really get into that ‘wealthy’ class. They earn well, spend well, and sometimes get a little richer because they bought a house or some such asset. However, the whole ability to create a nice annuity / other cash flow to take care of their smooth journey into the wealth class, does not exist. They do not even know that they are not on the right road.

Lets see what is wealthy: Wealthy means you should be able to meet all your goals, have a nice emergency fund, and a nice comfortable income stream – where even if one or two streams were to die down, you would not have to worry. This stream creation is lacking in most rich people. They have NEVER reached the wealthy stage.

What are the steps that one should take to REMAIN wealthy? I am assuming, you have become wealthy!

  • dramatically reduce the need to take risk/ variability.
  • understand how you reached the wealthy status – understand the process
  • if there was a lot of luck and less of ability, seek the services of a good adviser, but be alert
  • if you cannot understand an asset or how an investment works, run away
  • involve other family members, but be careful of their motives – it is double edged
  • if you can achieve your goals even by keeping all the money in a savings bank account, start simplifying
  • avoid fund advisers without wealth preservation abilities
  • avoid fund advisers who do not suggest debt funds / govt schemes, etc. – you NEED THEM NOW
  • You MAY still have to worry about the threat of inflation and a rising standard of living when you are wealthy
  • Longevity may mean a lot of documentation – living well, medical power of attorney, asset statements – make sure that your kids know and understand these documents
  • If your wealth is really big and your worries are typically in terms of the next generation, aim for preservation
  • All investors have multiple time horizons – if yours is across generations, involve them.
  • Don’t worry about what media, friends, etc. say.
  • Get a good adviser, and trust him completely
  • Jealousy, greed, pride,  and envy have no place in portfolio management.
  • Boring will almost always trump exciting with your investments
  • Spend well that will not hurt you. Investment foolishness can still cripple you

Getting rich is fine, staying there is not easy.


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  1. Brilliant Subra sir!

    I have seen with most young people who start doing very well, they increase their standard of living very quickly and do not diversify their income streams.

    They spend all the excess money on vacations, cars and flying business class but rarely ever in increasing their wealth.

    I think its the bias of a high paying job at a young age that makes people think that they will continue to earn well from the same source.

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