Those who were born wealthy were more likely to cite inheritance, entrepreneurship and real estate investment appreciation as asset sources. Most of today’s millionaires weren’t born into their wealth, research shows. No matter how millionaires get their money, they all share some traits. Product and service reviews are conducted independently by our editorial team, but we sometimes make money when you click on links.
In other words, when you earn money, put it in a savings, retirement or some other investment account. When you get paid, have an automatic deduction go to some type of savings.
To make it a reality, stay focused on your goals by committing the time to think about them, prioritize them and assign a target saving amount to each of them if possible. Then you should display your goals in places where you can be reminded on a regular basis, which will keep you accountable and help you stay on track. Cash-value (non-term) life insurance and variable annuities are generally products meant to be sold, not bought. Get the market return; use fixed asset-allocation, index mutual fund investing as your default strategy.
If you want to be a millionaire, you should invest money every day. You should work to make more money so that you can invest more. The key for most millionaires is to save money before spending it. No matter how much their annual salary is, most millionaires put their money where it will grow, usually in stocks and bonds. Millionaires know that they cannot possibly know how to do everything, so they find someone to guide them through the highs and lows of making money. They lean on others for perspective and insight. The study also revealed that self-made millionaires’ top sources of assets were investments/capital appreciation, compensation and employee stock options/profit sharing.
Make sure that you interview several candidates so you can find pros you trust, feel comfortable with and whose approach is a good fit for your situation. And even if you work with an advisor, make sure that you’re still involved and aware of where your money is going — and why.
Read at least one good basic personal finance book, one good investing book, and one good behavioral finance book. Consider Personal Finance for Dummies, The Boglehead’s Guide to Investing, and Why Smart People Make Big Money Mistakes. Be prudently frugal and selectively extravagant.
Be sure that you are spending your money on the things you value most If you can’t afford to pay cash for it, you can’t afford it. The only exception is a house, where the rule is if you can’t afford to put 20% down and use a 15 year fixed mortgage you can’t afford it. Realize that buying a house or cars that are too expensive for you will likely keep you from getting rich. Remember that every dollar you save in your twenties and thirties is 8 times as valuable as one saved in your fifties. Muller Media LLC also participates in affiliate programs with Bluehost, Clickbank, CJ, ShareASale, and other sites.