The global population of Ultra-High-Net-Worth Individuals (UHNWIs) is set to rise by 43% by 2026, says The Wealth Report 2017 by Knight Frank. The report reveals considerable variation in growth rates in different regions and countries, however. According to the Report:
• London, UK: the number of UHNWIs ‒ those with $30m or more in net assets – rose by 6,340 in 2016, taking the total to 193,490. The Wealth Report estimates that the UK will remain the front-runner in terms of its ultra-wealthy population, with a forecast 30% rise in UHNWIs over the next decade.
• A higher rate of growth in the US’s UHNWI population is expected in the next 10 years than for many other developed countries, despite uncertainties surrounding Trump’s policies.
• Vietnam has seen the biggest growth in its ultra-wealth population over the last decade. The number of millionaires is predicted to jump from 14,300 to 38,500 by 2026.
• Asia is starting to challenge the USA in terms of the largest regional population of UHNWIs. The region is also set to strongly outperform Europe in terms of the rate of growth of UHNWIs over the next 10 years, with a 91% increase predicted, compared with 12% in Europe.
• The predicted hotspots for growth in ultra-wealthy populations in Africa and Latin America include Mauritius, Ethiopia, Tanzania, Uganda, Kenya, Rwanda, Mexico and Argentina.
• Australasia, Canada, Malta, the UAE, Qatar, Monaco and Israel are examples of key ‘safe havens’ attracting migrating UHNWIs.
Resources: Knight Frank
How to Grow Wealth
• Drop your living expenses: ensure that your expenses are lower than your income.
• Save on vehicles: buy cash if you can and, if you can’t, do your homework properly to make sure you’re getting the best interest rates on loans.
• Save on accommodation: initially rent rather than buy, especially if you need financial flexibility to build up that emergency fund or retirement savings.
• Only buy what you need: follow a set budget to avoid spontaneous and unnecessary spend.
• Save a percentage of your income: the percentages vary, but some experts say between 30 to 50%.
• Put in the hard graft now: building wealth doesn’t happen overnight, and requires sacrifice and diligence.
• Become an entrepreneur: expect to lose money and make mistakes, but be sure to learn from every experience along the way.
• Invest in real estate: buy to rent or buy to flip. This won’t make you wealthy overnight, but will add to your net worth over time.