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The little alpine country, Switzerland, apart from its tourist attraction is also known for its global wealth hub with a remarkable concentration of millionaires.
A recent post on the social media platform X, formerly Twitter, shared by an entrepreneur Darshan, highlights a striking info about the country.
His post reads: "1 in 7 adults is a millionaire in Switzerland. That's 5x higher than the US. I had to find out their wealth-building habits. 7 ways the Swiss think about money to become richer than you:..". He then continued with a series post explaining the country's wealth.
Switzerland, with a 0.11 per cent of world population, ranks 101 in the list of countries by population has the highest concentration millionaires in the world, i.e. the alpine country has around 14.9 per cent of its adult being millionaires.
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As per tweet, this is nearly double the rate in the United States, where about 8.8 per cent of adults have achieved millionaire status.
So, what’s behind Switzerland’s extraordinary wealth-building success?
Investment Over Ownership
In comparison to the US, where 65 per cent of adults own their homes, only 41 per cent of Swiss adults are homeowners. Swiss millennials, in particular, prefer renting. The difference? They invest the savings from renting into high-yield assets. This mindset shift allows them to grow their wealth more aggressively compared to the more traditional homeownership route.
Saving Like a Bill
Instead of saving what is left after spending, the Swiss approach is quite methodical. Swiss households automate 20-30 per cent of their income into savings before making any purchases.
Investing in Skills
Education is highly valued in Switzerland, not just for degrees but for acquiring high-value skills.
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On an average, Swiss citizens spends 5-10 per cent of their income annually on personal development. Skills in languages, technology, and financial literacy are seen as investments that pay off significantly over time.
Multi-bank strategy
Swiss millionaires adopt a "multi-bank strategy" for managing their wealth such local banks for everyday and basic transactions, Private Banks for personalised wealth management, and International Banks for dealing with foreign exchange and international investments.
Swiss Philosophy on Wealth
The Swiss wealth-building mindset can be distilled into several key principles such as Automate Savings, Live Below Your Means, Focus on Long-Term Goals and so on.
Global Diversification
Beyond investing in diverse asset classes, Swiss investors often hold residencies or second passports to access international financial opportunities and optimise taxes.
Minimize Risk, Maximise Opportunity
By using multiple banks and diversifying investments, Swiss millionaires manage risk and seize opportunities more effectively.
According to the 2024 UBS Global Wealth Report, Switzerland is not just notable for its wealth but also for its distinctive financial habits. With around 800,000 millionaires in a country of fewer than nine million people, Switzerland achieves an exceptional concentration of wealth.
