In today’s modern world, the concept of wealth is ever-changing, and as global economies continue to evolve, it’s often difficult to keep up to speed with what exactly is required to be classed as a high-net-worth individual.
The definition of a high-net-worth-individual (HNWI) continues to shape-shift along with the global financial landscape, with both traditional factors and newer emerging trends impacting upon the specifics. But do you still meet the criteria? Or if you didn’t previously, do you now make the cut?
The Prillionaires net worth calculator will help you to calculate your current worth, which will give you the basic information you need to assess your current standing. Here, we take a look at the current criteria, as well as the characteristics of the modern HNWI in 2023, and what you can do to become one.
The basic threshold
At its core, a high net worth individual is a person who holds substantial financial assets that exceed a certain threshold in value. Generally speaking, this sits at around the $1 million USD mark, but with rising inflation and the spiralling cost of living, this could soon be about to change. The value of assets is all relative to the current economic climate, and they are quickly devalued by factors such as these. So, whilst technically speaking, being a millionaire is the key to being considered a HNWI, the baseline may be about to rise, and if your assets’ value isn’t projected to rise in value in alignment with it then you might suddenly find you no longer meet the criteria.
Diversified investments
The world’s high net worth individuals tend to have one major thing in common, and that’s their approach to investments. The wealthiest people have a broad and diversified portfolio that is designed to mitigate risk as well as focusing on long-term gains, and rather than being based solely around traditional assets like stocks and bonds, they also include alternatives like venture capital and real estate.
Entrepreneurial innovation
Wealth creation is largely underpinned by entrepreneurial endeavours and those who are fearless in business and adept at spotting new and emerging opportunities have the best chance of becoming classed as a HNWI. Innovation and adaptability are key characteristics of the HNWI, and whilst these alone won’t push you over the threshold, you’re more likely to find yourself heading in the right direction sooner rather than later. Actively investing in start-up ventures to promote innovation is common amongst this affluent group, and an area worth exploring if you haven’t already.
Digital transformation
Tech has of course played a central role in the development of our world in general over recent years, and has contributed significantly to the growth of global economies. When it comes to wealth creation, it’s a factor you can’t afford to ignore, and from blockchain technology to artificial intelligence (AI), there’s not an industry out there that hasn’t been affected by rapid digital transformation. The world’s HNWIs – as well as those on their way to entering the category – are placing a focus on the latest digital trends and tech-driven investment opportunities, which range from new star-ups to blockchain and the metaverse, and the ability to spot the latest trends and get ahead of the curve will stand you in good stead for becoming – or remaining – a HNWI.
The role of global connectivity
It goes without saying that the world is now better connected than it ever has been before, and this, in itself, presents a raft of new opportunities. Globalisation, combined with advancements in the tech sphere, have made seamless cross-border transactions a reality, which means it’s easier than ever for individuals to hold a diverse investment portfolio spanning multiple regions of the world. Offshore accounts are becoming increasingly common, and investments in emerging markets are also on the rise, allowing HNWIs to dramatically increase their wealth potential.
