Have you ever wondered what the top 1% of wealthy people have in common and what makes them so wealthy? Would you like to know how they came to be where they are today? How about 5 Traits Of Millionaires? My own questions led me to do some research and put my findings into a book I wrote called: 5 Traits Of Millionaires, based on my findings. You can download this short download from the following link if you wish to do so. My findings can be summarized in the following way:
There is no doubt that it is much more fun to be a millionaire than it is to be a billionaire. It may sound strange to say that, but it is the truth. The number of billionaires in the world is much greater than the number of millionaires. There is no doubt that this seems counter-intuitive, but when you consider the facts, it actually makes sense: millionaires command a greater degree of respect and attention than billionaires, and there is less competition to become a millionaire than there is to become a billionaire. Does that make sense to you?
They Keep Their Housing Costs Low.
As Stanley Fallaw states, millionaires typically live in a home and neighborhood they can easily afford, which is an example of frugality on the part of millionaires.
Among the millionaires she studied, she found that the majority of them had never purchased a home that cost more than triple what their annual income was at the time of purchase. There is a median home value of $850,000 in her latest study, which is 3.4 times the current income of millionaires. This home was originally purchased for $465,000.
They Don’t Budget.
Despite this, millionaires are able to save and be frugal without having to make any budgets. The majority of millionaires John spoke with did not have a budget in place when he spoke with them.
Despite the fact that it was not expected, he wrote in a blog post: “I think the reason millionaires don’t have a budget is because they make so much money and have self-control,” he explained. This means that they make a lot of money, spend only a portion of it, and have plenty left over to spend on their other needs. So why do they need a budget?
According to him, a budget is a great idea for the initial phases of a financial plan, but when you develop self-discipline not to spend money and grow your income, it isn’t essential to your success later on.”
Frugality
Millennials aren’t all frugal. There are however many self-made millionaires who practice some form of frugality in their daily lives. In spite of the fact that he is a billionaire, Warren Buffett has a few frugal habits. Frugality is about finding a way to make your money go as far as possible. As the saying goes, it’s not always about getting the cheapest thing; it’s more about getting the most for your money. As a result, it means that you do not waste your money on things that you don’t need or want. In the future, you can save more of your money if you practice frugality as part of your daily life.
Willing to Make Wise Investments
Millionaires know that money makes money. Compound interest matters to millionaires. They study how to invest wisely. Millionaires learn what is likely to bring them a return, whether it’s investing in a good education (not necessarily college), starting a business, or buying solid stocks. Their decisions are solid after considering the options.
Focus and Discipline
If you want to be a millionaire, it helps to know what you want, and then have the discipline to go after it. When you set a goal, you focus on it, and pursue it. This means that you don’t get sidetracked by less important matters. If you know that you need to set $1,000 a month aside in order to meet your millionaire goal within an allotted timeframe, you focus on that. You cut expenses or, better yet, look for ways to increase your income, so that you can meet your goal. Sometimes it’s not fun, but millionaires usually stick with it.
Optimism
You might find, when speaking with millionaires — especially self-made millionaires — that there is an element of optimism and joie de vivre. Many millionaires know that if things go wrong, it is possible to find the bright side, learn from mistakes, and move on. Additionally, many millionaires know how to enjoy life as well. Many successful and happy millionaires understand that there is more to live than just amassing wealth; sometimes you need to spend time with your family and friends, eat good food and relax a little. However, the ability to find a silver lining, and to have the persistence to try again, is one of the defining traits of a millionaire.
Getting their hands dirty
Sometimes, it takes a little bit of elbow grease in order to get to where you want to be. It might be necessary to stay up late at night if you run a business. Those who are millionaires are willing to put in a lot of effort and do things for themselves when it is necessary to do so. Those who are millionaires are also willing to do whatever it takes, even if that means taking on a job that they do not like. It is also the case that a millionaire is also aware that this includes taking responsibility for their financial destiny, refusing to blame others for their misfortunes, and making sure that they have more than one income stream.
They invest in real estate.
As soon as they have built wealth, John finds that they’re prone to taking on side jobs such as investing in real estate as a means to earn extra income.
As a result of covering the basics and generating excess cash, he concluded that investing in real estate would make sense once the basics are taken care of.
An investor who specializes in real estate investing, Dana Bull, says that there are numerous advantages to investing in real estate. Some of the advantages include positive cash flow, appreciation in the value of the home, leverage, and tax advantages.
They spend more time studying and planning for investments.
It is possible that the preferred investing strategies of millionaires are influenced by the research that they conduct. According to Stanley Fallaw, millionaire investors tend to spend significantly more time planning for their investments – on average, 10.5 hours per month – than most of us.
As a result, the under-accumulators of wealth spend nearly two hours a month doing that, whereas under-accumulators of wealth, defined as those with a net worth below half of their expected net worth based on their ages and earnings, spend 8.7 hours per month doing that.
According to Stanley Fallaw, “these people are more tolerant of risks associated with investing as they have a greater understanding of financial matters.” Accordingly, “Future outlook and financial knowledge are generally associated with taking greater financial risks, so the amount of time spent managing and researching investments contributes to their decision-making process.”
They sleep less and work more.
In order to make the most of their time, millionaires make a few sacrifices in order to make the most of their money. Stanley Fallaw, a professor of economics at MIT, has found that American children sleep nearly eight hours fewer a week and work six hours more a week than their American peers.
The reason might be that many people wake up at least three hours before they begin working for the day – as a strategy to deal with the inevitable daily disruptions, according to Corley’s findings.
By getting up at five a.m. to tackle the top three things you want to accomplish in your day, you will be able to retake control of your life,” Corley wrote in his article. As a result, you become more confident that you are indeed in charge of your life and that you are in charge of yourself.”
They don’t follow the crowd.
According to Corley, millionaires do not follow the crowd when it comes to making money.
As Corley wrote, “We are so eager to integrate into society, to acclimate to our surroundings, to be a part of the pack, that we’ll do almost anything in order to avoid standing out from the crowd,” he wrote. As a result of not being able to differentiate yourself from the herd, he said, most people never have the opportunity to achieve success.
Rather than following a herd, successful people create their own new one, according to him.
It is important that you separate yourself from the herd, create your own herd, and then allow other people to join it as well.”
They’re resilient, and they persevere.
In the opinion of Stanley Fallaw, self-made millionaires are able to build wealth by combining resiliency with perseverance – characteristics that often go hand in hand with early retirees and entrepreneurs.
According to her, in order to build wealth, to build one’s own business, to ignore critics, the news media, and neighbors, you must have the perseverance to persevere beyond rejection and pain in order to reach your goals.”
The millionaire and other economically successful Americans who pursue self-employment, decide to climb the corporate ladder, or strive to achieve financial independence lifestyle early in their lives do so by perpetually pushing forward.
They practice consistency.
As outlined by Hogan in the book, Millionaires take responsibility for their lives, practice intentionality, are goal-oriented, and work hard to achieve their goals. It’s true that these are qualities that many people possess, regardless of their net worth, but millionaires realize that these traits can’t work together unless they’re consistent, he said.
You will be able to take responsibility, you will be able to be intentional, you will be able to set goals, and you will be able to work hard. The problem is you’ll never succeed in anything if you don’t repeat the same steps every year, decade after decade – if you don’t repeat the same steps over and over again.
He went on to say that wealthy individuals “know from experience that wealth-building is a long-term pursuit, and that sticking to the plan over decades can result in millions at retirement.”
Independent Thinking
There is a difference in thinking between millionaires and ordinary people. In other words, it is not just about money, but about everything. Millionaires spend their time and energy creating their own path to success, while everyone else spends theirs attempting to conform to society.
People who wish to be wealthy should think about their goals in a way that will enable them to achieve those goals since thoughts affect actions. Independent thinking, as we all know, does not mean doing exactly the opposite of what everyone else is doing; it means doing what you feel is important to you regardless of what others are doing, regardless of what others think. Therefore, in order to learn a lesson, it is important to forge your own path here in order to learn something from it. If you want to reach financial success, try to let your success drive you rather than doing it the other way around and chasing the money instead.
According to Forbes, David Geffen is regarded as one of the most successful self-made millionaires in the world. Geffen’s earnings in 2021 will amount to $9.9 billion. Geffen was an American record executive and film producer who did not complete his college education, but he managed to make millions of dollars by founding record companies, including DreamWorks Animation SKG Inc., and signing some of the most renowned musicians of the 1970s and 1980s. In spite of the fact that he didn’t follow what many people would consider to be the usual course to success, his relentless work ethic and his conviction about the potential of artists allowed him to accumulate an impressive amount of wealth
Skills
As part of their research for their book, Think and Grow Rich: A Black Choice (1992), Dennis Kimbro and Napoleon Hill interviewed a number of successful people in order to determine the traits they had in common. In their study, the authors found that people who are successful focus their efforts on their area of expertise. There is also a tendency among millionaires to work with others as a means of supplementing their weaker skills. It’s a good idea to ask family and friends what you are good at if you don’t know what you are. Develop your strong skills by using training and mentorship in order to refine them.
Investment
For millions of people, achieving their goals often means sacrificing time, money, and effort. The people taking part in this program are not afraid to take a risk now for the chance of achieving something greater in the future. If you are thinking about investing in securities or starting your own business, either way, it is a step towards achieving great financial rewards. Invest in the stock market now and reap the rewards later.
Add value
It is imperative that you bring some added value to the table in order to be successful. In order to be competitive with your competitors, you must make sure that whatever product or service you are offering is superior in some way.
Expert knowledge
There is nothing more important than knowing everything about your industry, company, competition, or field inside and out. It is essential that you are an expert in the field.
Strong work ethic
There must be a willingness on your part to put in the hours. When you have a strong work ethic, you dedicate many hours every day to your profession, and this takes a lot of effort.
Power Relationships
In order to be able to take advantage of opportunities, you need to establish relationships with people who can help you.
Persistence
It is imperative that you have the mindset that you will never give up in the face of difficulties. It is well known that Elon Musk once said if he were to quit, he would have to be either dead or completely incapacitated.
THEY DON’T BLAME.
A successful business person does not place blame on other people. In place of making excuses for bad outcomes, or reassigning responsibility to others, they take the time to learn from their own mistakes instead of blaming them on others.
THEY ARE SINGLY FOCUSED ON THEIR CORE BUSINESS.
There will always be a strong connection between a successful entrepreneur’s vision and the ideas he is inspired by. It is important that they focus on opportunities that align with their business’s purpose and their business’s mission. You should never try to invest in real estate the day after selling retail products on eBay. It’s important for them not to lose sight of what they are doing. It is possible for them to sell their products on eBay, write articles, look for joint ventures, and attend seminars related to marketing, but through all of their efforts and their FOCUS, they will be able to achieve their main goals.
Conclusion
Being a millionaire might seem like pie in the sky; but millionaires across the country and around the world prove that with time and dedication, it’s possible to trade your financial shackles for a life of freedom and abundance.