Put your money in investment accounts where it can sit and earn interest over time even though interest rates are much lower than they used to be.
How Most Millionaires Got Rich. Stella Morrison. Ever wonder how self-made millionaires earned their fortune? There are two types of millionaires: self-made millionaires and those born into wealth. This article is for those curious about how self-made millionaires got to where they are today and hoping to learn something from their success.
Most of today's millionaires weren't born into their wealth, research shows. What traits do millionaires have in common? The Fidelity study results showed that even though millionaires have different ways of making money, they often share these traits: They set ambitious goals and act on them.
Self-made millionaires put their ideas and dreams into action, whether that's starting a business or achieving other professional or personal pursuits.
This determination is a common driver among many who made their millions without an inheritance. They have mentors. Many self-made millionaires are quick to admit that they cannot possibly know how to do everything. They reach out to others who know the ins and outs of different types of saving and investing, tapping into the best minds on each subject for perspective and insight. That certainly pays off.
They look for feedback. For a self-made millionaire, self-improvement never stops. Self-made millionaires look for critique and feedback in their ideas and business practices, ensuring that they can better identify blind spots and guarantee that their ventures will succeed.
But smart investments will give you healthy returns, which you can then reinvest. When you invest in something, you also accept some amount of risk, so you never want to invest more than you can afford to lose. They do their research and analysis, and determine which options best suit their financial needs and business desires. They weigh the pros and cons, and then take calculated risks. The wealthy understand the importance of self-education and pushing themselves to become better in all ways.
While 85 percent of rich people read two or more self-improvement books per month, only 11 percent read for entertainment, compared to 79 percent of the poor. And a whopping 94 percent of wealthy people read news publications, compared to 11 percent of non-wealthy people. The ultra-rich certainly have enough money to never work another day in their life, but the majority of them keep working , at least to some degree, often well past But many rich people never completely retire.
Many are entrepreneurs at heart, and the desire to run and grow a business never leaves them. The stability of working and the sense of purpose and fulfillment it gives them is an important part of their overall happiness. Working gives them an ongoing feeling of success and an objective to keep them focused.
Not to mention that it keeps the money rolling in! Related: 6 Hard-core Steps to Take to Retire at While non-wealthy people daydream about spending money without worry, buying fancy cars, big houses and expensive clothes, the rich understand that the more money you spend, the less you have. The rich recognize that the less you spend, the more money you have to grow your wealth.
Keep in mind that frugality is relative to your income -- a wealthy person may spend much more than someone who is considered middle class. According to a T. Ultra wealthy individuals are always looking for ways to double or triple their income so they can enjoy the "good life. The rich people I interviewed see money as a dynamic medium of exchange for goods and services that should circulate and grow — and they pass that point of view on to their kids by teaching them to invest their pennies.
Change your mindset : Saving is important. But set an example for your kids by emphasizing the importance of knowing how to grow your money, too. Show them that investing can be fun, and that it's okay to spend their earnings on things that make them happy.
You only live once, right? Most people never accumulate massive wealth because they see money through the eyes of negative emotions. By the time the average person becomes an adult, they've been brainwashed into believing that just talking about finances leads to stress and anxiety — so they try to avoid the topic as much as possible. The wealthiest people, however, see money for what it is and for what it isn't — through the eyes of logic. To them, it's simply a tool that presents options and opportunities.
When it comes to strategizing how to make more money, they put their emotions aside and let reason be their guide. As the Irish writer Jonathan Swift once said, "A wise man should have money in his head, not in his heart. Change your mindset : Use your logic to dictate your financial strategy, and use your emotions to motivate yourself to stick to it.
After several decades of sifting through surveys, interview transcripts and studies, I've found that, more than anything else, physical, psychological and emotional comfort is the primary goal of the middle class. But financially successful individuals learn early on that striking it rich isn't easy, and that the need for comfort can be devastating. They learn to be comfortable while operating in a state of ongoing uncertainty.
Meanwhile, the masses go out of their way to avoid doing things they don't like, which in the early stages of building wealth is where the most opportunities lie. Rich people, however, are optimistic and daring. Science says the answer lies not just in what you do, but also in who you are. According to a study published in British Journal of Psychology , rich people are definitely different.
Add it all up and, as the researchers write :. Both empirical and conceptual personality research suggests that extraordinarily high achieving individuals may constitute a group that, on average, differs on several personality traits including higher extroversion and conscientiousness, and lower neuroticism, as well as higher narcissism and locus of control.
So, yeah: Personality matters. Generally speaking, the willingness to work with other people, to do the right things, over and over and over again, to put short-term success and failure in their proper places, and to feel like you, through your own effort and persistence and sheer grit, can largely control the outcome. Those personality traits matter. But what if none of the above sounds like you? Don't feel bad: Some of it sounds like me; other parts, definitely not.
For example, rich people tend to be extroverted. If you're introverted, you don't need to change your personality. Just adapt a few "extrovert" behaviors. Actively seek ways to collaborate with others. Find ways to team up with another person on a task or project. Better yet, partner with an extrovert. Think Jobs and Woz.
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