Rising affluence in Asia is reshaping attitudes toward wealth, as the affluent now view wealth accumulation as secondary to a plenitude of sophisticated lifestyle goals which they are determined to pursue.
The so-called Global Affluent Tribe, are united by five common values, regardless of where they live — mobility, success, status, belonging and consumption. Throughout global economic uncertainty, these values have not changed, but the way the tribe express them has.
Quality of life is of equal importance as wealth.
New values, aspirations and lifestyles define today’s Global Affluent Tribe. Wealth to them encapsulates so much more than financial growth. They mostly value the health of their family, the security of their homes, the legacy they pass to the next generation, the cultural experiences that enrich their characters, the passions they pursue outside of work and the ability to find a greater work-life balance.
With their basic needs fulfilled, they are now pursuing more intangible and meaningful outcomes in their wealth journey.
All of them have a unique and complex personal economy made up of the things that are most valuable to them and influence all aspects of their life, including their financial decisions.
This is what we learned in conversations with people who, by their values, outlook and lifestyle, we consider to be members of the Global Affluent Tribe.
In Taiwan, our conversations with clients have given us a glimpse of facets of their personal economy that are affecting the way they save, spend and invest. For example, many families are planning to send their children to study at universities overseas. Many working professionals want to retire at 58. Those planning their retirement are hoping they can travel or have more time to be with their families and friends.
Global and national economies are beyond their control, but individuals can control their own personal economies, which represent the health of their entire financial life. However, just like all other economies, personal economies need constant care and attention to ensure that they stay healthy and grow strong.
A good grasp of market movements is key to making timely and appropriate adjustments to investment portfolios. For example, it is useful to observe investment trends closely before deploying assets. In addition, it is good practice to conduct regular financial reviews and consider changes to goals and asset allocation to address the needs of our current personal economy.
Members of the Global Affluent Tribe lead mobile lives. They look for rich experiences and self-discovery — the journey is more important than the final destination.
There is no one way to achieve success. They are venturing down more creative and entrepreneurial paths in search of success. Less defined by their pedigree, they create a name for themselves.
Status is no longer displayed with a badge. It is now earned through discovery and learning. Expertise and connoisseurship are today’s currency of status. Meaningful experiences trump expensive objects.
Belonging is not achieved through exclusive access, it is being part of communities that gives tribe members exclusive knowledge and experiences that matter.
The Global Affluent Tribe used to consume with little guilt. Now, more educated and thoughtful, they look for brands and products that demonstrate that consumption has a bigger purpose.
There is no better time than now for the global affluent to start looking at their long-term financial needs through the new lens of their personal economy.
Bonnie Qiu is head of retail banking and wealth management at HSBC Bank (Taiwan).
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