I was reading an article today on Monster.com (no, I’m not looking for a new job) that was talking about things that millionaires do that set them apart from those who aren’t successful. It had some pretty keen insights that I thought were worth sharing.
A lot of people like to think that most millionaires are rich because they had things handed to them on a silver platter, or because they were born with a silver spoon in their mouth. The reality is that most millionaires are self made, and had to work hard to get where they are. The book “The Millionaire Next Door” says that fully 80% of millionaires are first generation affluent.
credit: Tracy O
What Are These People Doing That Allows Them To Be Successful?
According to the article, millionaires in general have these traits in common:
- They don’t have an earn and spend mentality, instead they focus on saving and investing.
- They are able to focus their efforts on a project and make it successful.
- They’re willing to do what it takes to make their ideas successful, even it involves making sacrifices.
- They take calculated risks (In other words, they take risks when they have a chance of paying off).
- They are generous, and share what they’ve earned and have been blessed with.
UPDATE: To listen to an in-depth discussion of this article and topic, check out the Wise Money Matters podcast!
Excerpt from the article:
1. Avoid the Earn-to-Spend Mentality: Michael LeBoeuf, author of The Millionaire in You, points out that to increase wealth, it’s essential to emulate millionaires who view money as something to save and invest, rather than income to spend. Many wealthy people live quite simply, he points out, choosing less pretentious homes than they could theoretically afford and opting for financial independence over material showmanship.
2. Focus: LeBoeuf also counsels resisting the impulse to be scattered in your efforts and interests: “Winners focus; losers spray.” And goals that are clearly written down are easier to keep in focus.
3. Do Whatever Is Necessary to Meet Your Goal: People who earn their millions are able not only to focus but persevere in the pursuit of their goals. One single mom entrepreneur, Melissa Clark-Reynolds, started her first business, a health and safety consultancy, when she had a young son. En route to her goal of being a millionaire by age 35, Clarke-Reynolds and her son ate lots of pizza, did homework late at night and often slept at the office. She is now a chief executive mentor for Empower New Zealand, a global business consulting firm headquartered in London.
4. Take Calculated Risks: You have to take strategic risks to earn and grow money. And a little rebelliousness seems to help too. One interesting study found a majority of male millionaire entrepreneurs had been in trouble with school authorities or the police during their adolescence.
5. Be Generous: And why doesn’t it surprise us that millionaires are often very generous? Sometimes it’s for the tax breaks, obviously, but often it’s not. One Jewish Swiss millionaire, for instance, flew to Israel to give $5,000 in cash to a waiter at a Jerusalem café who foiled a Palestinian suicide bombing. Among the most generous of millionaires are those from North America, who are, according to a Merrill Lynch Cap-Gemini report, two to five times more likely to give to causes they value than their European counterparts.
These five habits are a pretty good prescription for living happily even if you’re not a millionaire.
So millionaires are savers and investors, focused, dedicated, risk-takers, and generous to a fault. I guess it’s not exactly surprising that they’ve found these things, it stands to reason that in order to be successful you need to be a dedicated hard working person who has integrity and focus. Without it I think the only way you can be successful like these folks is to either be lucky, or extremely unethical. And gaining wealth through ill means never seems to be as satisfying (or lasting).
Dishonest money dwindles away, but he who gathers money little by little makes it grow. Proverbs 13:11
Can you see some of those traits in yourself, and do you think that you’ll be a millionaire one day? Do you think that becoming a millionaire without some or all of these traits is possible? Tell us what you think in the comments.
I think the most important part is definitely making the transition in your attitude about money from something that is available for you to “spend,” rather than for saving and investing and making more money with. i.e., the transition from being a consumer to being an investor and even an entrepreneur about money.
I agree. Once you make the transition to being a saver/inverstor, the rest is just a matter of time and diligence…
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I think it’s interesting that all 5 of these are related to mind set. You have to change the way you think about money, and see it as a tool, rather than an end in itself.
or you are no longer a “tool” but use money as a tool. ;-)
These all involve taking less delight in “stuff” and more delight in the usefulness of money as a capital good.
I think it’s the whole concept of money. Most most earn to spend. They are consumers and all they care about is consumer producing assets instead of income producing assets
The most important habit of most of the millionaires is their ability to spot the difference between necessary spending and extravagance. Most of them dont spend on luxury cars, they are content driving their old car. They believe in saving rather than spending.
I know I’m a little late getting to the party, but I have to say something. This post is so encouraging. I absolutely believe I’ll become a millionaire some day. Sometimes I think people don’t understand what goes into creating financial wealth: sacrifice. Lately I’ve been entertaining the idea of moving out of my apartment and back into a shared living arrangement to save more money. I figure the extra cash will allow me to take greater risks more frequently. I’m pretty sure I’ll get some crazy looks from this idea.
I read the book “Failing Forward” Awesome read. I believed in my work and most importantly in myself. I stayed in a Homeless Shelter for 1 year and 4 months in order to write a documentary and reach my Goal of becoming a Millionare one day because of my work. It was a hard step down that literally wore me out, however I got the story! I helped other’s and most of all I am almost a Millionare because of the risk. The journey changed my way of veiwing money, people and society. I stayed in God presence in order to survive, I learned Wisdom and Pure Sacrifice for my future. Shawanda no crazy looks here, do what you must to get what you want.
Hey Peter:
I’m glad to see you reference Prov 13:11; it’s certainly one of my personal favorites.
Creating wealth and value is more about skill than simply luck. I often tell people that, when it comes to the business deals I make, I would much rather have a high “batting average” than simply hit a few home-runs. I’d like for each business deal to be a success.
hello world =)
Honesty its more than all this to become a millionaire . THE KEY IS “GOD”
WE HAVE SPIRITUAL POWERS TO CONNECT TO THE UNIVERAL MIND BY JUST THINKIN INVISIBLE FORCES MOVE INTO PLAY N IT CONNECTS TO GOD.
JESUS CHRIST USED THIS, EINSTIEN, DR.MARTIN LUTHER KING, ABRAHAM LINCOLN …ETC…
‘
I PROMISE THAT IS THE KEY TO SUCCESS ..TO TRUST THE LORD AND TO LET THE HOLY SPIRIT GUIDE YOU TO SUCCESS WHICH WILL HAVE YOU DO THINGS DIFFERENTLY IN THE FUTRE TO GET THEIR …IM NT A MILLLIONAIRE YET BT I KNOW ITS CLOSE. GOD BLESS EVERY SINGLE SOUL WHO TRUSTS THE LORD AMEN.
The most vital habit of most of the millionaires is their ability to identify the distinction between necessary payment and extravagance. i feel it’s the full idea of cash. Most most earn to pay.
The biggest effect on the ability to “save and invest” is house and car payments. Keeping these low provides the ability to save, and a bit of knowledge gives the confidence to invest.