More people today are millionaires than ever before. While becoming a millionaire seems like simple fantasy for most, the reality is that it is actually very attainable with the right habits and work ethic. Most millionaires share several common traits which have enabled them to obtain great wealth over a long period of time.
An obvious and common trait among millionaires is that they have reliable means of income through their jobs. A stable job provides a person with a 401k plan, a suite of benefits, and possibly a pension plan. All of these in conjunction translate to a significant amount of money saved. The rich are also very good at taking full advantage of these benefits, starting contributions to their retirement plans at an early age. These people save early and often, making sure to take full advantage of the tax breaks that a 401k offers.
In addition to taking advantage of work benefits, the wealthy are also heavily engaged in investing. One of the most common means of wealth building is through the stock market, where investors buy shares of a company or an index and then hold those shares. Over the long term, the shares increase in value and the investor sees a return. Millionaires have mastered the art of buying and holding, not panicking during periods of downturn. The wealthy are typically very self-aware when it comes to investing, and are not afraid to ask for the advice of a certified professional. This awareness enables them to look past their own personal ego in order to obtain the best results that are possible. Being results driven rather than egocentric is something that drives the wealthy to the heights that they reach.
The wealthy are also very good with managing their expenses. They do not purchase homes that they cannot afford, and put an emphasis on being able to pay off their mortgages before retirement. By doing so, they eliminate a significant amount of debt that they would otherwise be paying back in retirement. Furthermore, they do not spend mass amounts of money on unnecessary luxuries like fancy cars and designer jewelry. If you believe everything on TV, you might think all millionaires spend money and drive Ferrari’s, have lavish yacht’s, etc. But you may be surprised that most millionaires are walking by you almost everyday. They are dressed down, manage their money well, and do not show off. They live below their means and dress just like every other regular blue collar person. By putting that money to work, instead in mediums like investments and debt elimination, a person is able to grow their wealth much more efficiently. By the same token, wealthy individuals have good histories of making payments on time. By paying on time, people are able to avoid punishing interest payments that result in large amounts of debt. A high credit score is a priority for the wealthy.
Anther popular medium of investment is real estate. A house can generate value through both appreciation and through rental income. Through good maintenance and consistent payments, a house can actually generate a significant amount of income. The power of real estate has helped many millionaires grow their wealth. Like the stock market, it is key to have patience and to show discipline when investing. However, with time and some research, real estate has proven over the long term to be one of the most effective mediums of investing there is.
Becoming a millionaire does not happen by simple accident. It is something that people have meticulously planned for. Through careful analysis and putting the important things first, anybody can become a millionaire. The key is to make a plan and have commitment to stick to that plan without getting wrapped up in unnecessary debt and making irrational purchases. Realizing what your strengths and weaknesses are is key in the journey, and one should never be afraid to ask for help. A simple plan and a goal set in stone go a long way in the journey to financial success.
Will power is one of the most powerful traits millionaires have. People splurge everyday on things they want and need. Its differentiating the difference between wants and needs. Its okay every once in a while to reward yourself for a job well done. But if your spending your entire paycheck every time you get it to buy things you don’t need, your running into the debt trap. You have to pay yourself first when your check comes in. Even if its just a small amount like $10-20. Something you can put into savings and grow your nest egg. Becoming a millionaire is not as hard as most people think. However, most people have slim amounts of will power and believe saving in the future is not a reality. That is where the line is drawn. Invest in your future through savings and investment. Put that money away through a plan that works for you and your family. If your unsure, go have a visit with a financial planner or someone who you admire and ask questions. There is nothing wrong with setting your ego aside and asking for help managing money.
