How Do Millionaires Become Millionaires?
Listen to Best in Wealth Podcast Episode 154
What do millionaires do to become millionaires? What are some of the habits that contribute to their success? In this episode of Best in Wealth, I share 25 survey answers that were conducted by Chris Hogan in his latest book, Everyday Millionaires. If you want to achieve millionaire status in your lifetime, I highly suggest you give this a listen—and implement these strategies.
Outline of This Episode
- [1:05] Schedule a 15-minutes call with me!
- [2:21] The importance of grit & resilience
- [4:18] How millionaires become millionaires
- [7:34] The first thing that millionaires do
- [9:58] Millionaires control their own destiny
- [10:44] Statistics on millionaire habits
- [22:52] Millionaires DO stay married
The misconception about millionaires
74% of millennials and 52% of baby boomers believe that millionaires inherited all of their wealth. Survey says...that is a LIE. Do not believe it. Most millionaires do not inherit their wealth. 8 out of 10 come from families at or below the middle-class income level. It goes to show that anyone can become a millionaire with discipline and hard work. Each person starts at a different place. Each has their own obstacles to overcome. Millionaires come from all walks of life and socioeconomic backgrounds.
In Chris Hogan’s book Everyday Millionaires, he talks about the things that millionaires do to be successful. I go over some of these things to help you rethink your finances and your investments. Sometimes we need to reset our mindset to have a better shot at success. I want everyone listening to this show to become multi-millionaires. Why? So you can build the cornerstones in your life to full abundance.
Millionaires believe in themselves
Before they were millionaires, they believed that they could become millionaires. They reject the voices that say “it cannot be done.” Instead, millionaires put their heads down, get to work, and make it happen. If you want to build abundance in your life, it is up to you. Not your family, friends, or the government. It is not about owning your own business or taking huge risks. It is about working hard and controlling your destiny through solid and sound investing.
Speaking of investing, most people achieve millionaire status by contributing to their 401k or other retirement plans (IRA, Roth IRA, SEP IRA, 403B, etc.). Many of them have more than one retirement account. They are likely contributing to a backdoor Roth or Mega Backdoor Roth, too.
Millionaires stick to a budget
Millionaires live on less than they make, plan for big purchases, pay with cash, they use shopping lists and stick to them. In fact, 93% of millionaires use coupons! You can use an app like the EveryDollar Budgeting app to help you track your expenses. When you are eating virtually all of your meals at home, the grocery line item can get VERY expensive. But if you stick to your list, you spend less.
The average millionaire drives a 4-year-old car. I am driving a 2015 truck with thousands of miles on it. Large car payments can disrupt you hitting millionaire status. That money should be going into savings instead. Speaking of savings, 70% of millionaires save more than 10% of their income. At one point in my life, I saved 50% of our working income.
The bottom-line? Reaching millionaire status is more about how hard you work than how much you make. If you spend less than you make and consistently save, you can do this. I share some more astounding statistics about millionaires and their habits in the rest of the episode. Don’t miss it!
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The Best In Wealth Podcast is hosted by Scott Wellens. Scott Wellens is the principal at Fortress Planning Group. Fortress Planning Group is a registered investment advisory firm regulated by the Securities Act of Wisconsin in accordance and compliance with securities laws and regulations. Fortress Planning Group does not render or offer to render personalized investment or tax advice through the Best In Wealth Podcast. The information provided is for informational purposes only and does not constitute financial, tax, investment or legal advice.