Barclays Wealth: The Rich Lack Self-Control — Money Doesn’t Buy Money Sense

(Editor’s note: this report was originally in English and is rewritten in Chinese per this site’s practice.)

A Barclays Wealth survey published in June 2011 found that many high-net-worth individuals lack self-discipline — being rich doesn’t mean being good with money, and impulsive decisions are common.

What did the survey find?

The wealthy make money mistakes too. Surveying high-net-worth individuals across markets, it found many admit to impulsive investment decisions and indiscipline — overconfidence here, herd-following there — with returns trailing expectations.

Why does this happen?

Human weakness doesn’t vanish with wealth. Greed and fear sway decisions whatever the asset level; without clear goals and discipline, even fortunes drain away.

What’s the lesson for ordinary people?

Money management runs on discipline, not on how much you have. Clear goals, diversification, regular reviews, no chasing rallies or panic-selling — these rules fit billionaires and workers alike. Same for MPF investing: don’t switch funds wildly on market swings.