Picture your classic millionaire. What are the images that come to your mind? I would take a guess they would be one or more of the following-
Thomas Stanley and William Danko thought as much as well. However, their research of the 2.5 million millionaires revealed that, aside from the 10% of millionaires who were rich by inheritance or a windfall of cash, the 90% who made it by themselves were characterized by the following ‘7 Habits of Highly Rich Millionaires‘ :) –
1) Entrepreneurs: Typically self employed businessmen. There are a few normal wage earners as well.
2) Happy marriage: Married once with a happy family and kids who are typically independent and don’t live off their parents
3) Don’t go for status or rich neighborhood: Never bought the latest sports car or spent more than $300 on a suit or watch and most definitely don’t live in a rich neighborhood.
4) Marry a similar minded spouse: In most cases, the wife is even more frugal than the husband/breadwinner.
5) Save, Budget and Plan: Strong yearly and monthly household budget maintained along with investment planning. And save more save 15% or more of their income.
6) Child care: Never compromise on sponsoring their kids’ education.
7) Invest in a good financial advisor
: Never hesitate on investing in good financial advice and spending time to make sure they invest smart.
The money management strategy of the majority of these millionaires is simple i.e. Strong offence i.e. excellent earning with a very strong defence i.e. excellent saving.
And do you know what the most inspiring part was? Many of these self made millionaires did this in spite of annual incomes of about 90K USD at the peak of their careers and yet are in the ‘Prodigious Accumulators of Wealth’
category! If they can do it, why can’t we?
Let’s start with budgeting our expenses for 2011 then!