Posted on 02/07/2019 8:40:47 AM PST by simpson96
Anyone can become rich if they know the right steps to take.
But if you possess a certain set of characteristics, you may be more likely to become wealthy, according to Sarah Stanley Fallaw, director of research for the Affluent Market Institute. She co-authored “The Next Millionaire Next Door: Enduring Strategies for Building Wealth,” in which she surveyed more than 600 millionaires in America.
To identify characteristics most predictive of net worth, Stanley Fallaw conducted two studies that included a group of individuals with a net worth ranging from $100,000 to $1 million and a group of high- and ultra-high-net-worth individuals.
She found that six behaviors, which she called “wealth factors,” are related to net worth potential, regardless of age or income: •Frugality, or a commitment to saving, spending less, and sticking to a budget •Confidence in financial management, investing, and household leadership •Responsibility, which involves accepting your role in financial outcomes and believing that luck plays little role •Planning, or setting goals for your financial future •Focus on seeing tasks through to their completion without being distracted •Social indifference, or not succumbing to social pressure to buy the latest thing
Frugality came up several times during Stanley Fallaw’s research—many of the millionaires she interviewed stressed the freedom that comes with spending below their means. Being frugal was one of three key ways they achieved financial independence.
It also takes confidence to invest properly — instead of making investing decisions with your emotions, you should leave your investments alone and focus on a long-term investment plan, certified financial planner Shelly-Ann Eweka previously wrote for Business Insider.
But you can’t invest — or manage your own money — without accepting responsibility for the outcomes.
“[Millionaires] don’t count on anyone else to make them rich, and they don’t blame anyone else if
(Excerpt) Read more at finance.yahoo.com ...
You are so correct. Live within means. We have family who think they are hot stuff, with their traveling, long vacations, sharp cars, etc. And willingness to give advice... totally clueless, and no clue they’re clueless.
I’d like to see the results of studying a certain 535 people in DC. They aren’t all millionaires (yet) but I bet the conclusions would be quite different.
Yes, its good advice, but an obvious logical fallacy.
I agree that a million dollars in the “bank” doesn’t make rich or even financially independent—but it sure does help!
One thing too many people consistently overlook: nursing home/long term care insurance. Medicare DOES NOT pay for the cost of nursing home care. I literally don’t know anyone who has this kind of insurance, it’s Incredible to me. You can build. nice retirement nest egg and have it quickly wiped out by nursing home costs.
Mr RooRoo and I signed up for long term care insurance when we were in our early 40’s—when we were young and healthy, and premiums were low. 20 years later, our monthly premiums are only about $100 per month per person. The current benefit is about $6000 per month per person. In Arizona that’s probably the average monthly cost of nursing home care.
Again, Medicare DOES NOT pay for the cost of nursing home care. Baby Boomers beware!
Why do you assume someone earning minimum wage will “never” be a millionaire? Here is one example from 2016:
https://www.cnbc.com/2016/08/29/janitor-secretly-amassed-an-8-million-fortune.html
I have no idea if he made minimum wage but he was a gas station attendent, like you requested, so we can at least surmise he had low pay. If he can do it, why can’t others?
In my opinion, the answer is people can, even on minimum wage. Many on minimum wage instead, choose not to try or to blame society.
Of course, one does not have to stay at a minimum wage job. A person can choose to learn other skills which can pay more. And no, I will not demand that they learn to code, but there are skills that they can learn which pay much better than minimum wage.
One item that was not in the list, was an individuals ability to handle risk, which the man in the article above seemed to have. I surmise this based upon the line “...Read had quietly amassed an $8 million fortune, thanks to smart spending and investing habits.”
JoMa
I wonder how many people got your comment? I laughed but I like math.
JoMa
The start to becoming a millionaire is to make a product or provide a service that people want.
And you’re off!
5.56mm
My frugality kept us afloat when some of my husband’s risks didn’t work out. So for us it was complimentary success.
The Million Next Door and The Millionaire Mind, the follow up book to the former, are great reads. I highly recommend both.
JoMa
I read somewhere that the owner of much of the land around Tyson’s Corner Va was a GSA maintenance guy. Started buying land there probably in the 1930s /1940s & started selling in the 1960s to 1980s. He made a fortune! Exactly how much? That I don’t know!
Sorry....There are millions and millions of people who had these same “how to live” ways....and they never became millionaires.
The number one way to become a millionaire.
Get elected to political office.
Live below your means. Invest. Invest in yourself (get a good education and work hard/smart in your career) so others will pay you well. Start a company and work really really hard.
I'm working on my second million dollars!
(I gave up on my first...)
Item 2....who’s your daddy....Rockefeller
Congratulations on your financial success!!
After running up 226,000 miles on my Dodge Grand Caravan van, we finally traded it in. We bought a gorgeous Chrysler Pacific van with 10,000 miles on it, paid $20,000 cash for it. I feel rich driving it around LOL!!
Sorry....There are millions and millions of people who had these same “how to live” ways....and they never became millionaires
Not sure what you mean by the ‘sorry’ to begin your post but I assume you mean you are discounting that these rules can work.
I submit those millions of people you note who ‘had’ these rules and never became millionaire did not ‘use’ or ‘follow’ these rules. Thus, they never became millionaires. It is that simple. Here is just one example:
https://www.cnbc.com/2016/08/29/janitor-secretly-amassed-an-8-million-fortune.html
JoMa
Hmmm...playing the lottery is not on the list?
Like Bill Gates, Scott McNealy (microsoft and sun microsystems). There are a bunch of others but those to spring to mind.
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