Ok... so you didn't win the Mega Millions! But a few easy habits could make you a Millionaire in a few years.
Tom Corley author of “Rich Kids: How to Raise Our Children to Be Happy and Successful in Life” and ”Rich Habits: The Daily Success Habits of Wealthy Individuals," is also an accountant, financial planner who spent time with 225 millionaires over 5 years to develop common habits.
Corley wrote in an article from CNBC, that he found four categories that all Millionaires fell into. Savers-investors, Company Climbers, Virtuosos, & Dreamers.
Savers - constantly think of ways to grow wealth and make plans to invest and save for the future. It's a daily routine.
Company Climbers - these people chase every opportunity and work and give everything to reach the senior executive level with a high salary.
Virtuosos - Top performers in their craft and get paid for their expertise. Typically formal education and advanced degrees help a lot here.
Dreamers - These people have a passion for their craft and chase it to the top. Acting, Performing, owning a business, or inventor.
Notice... none of these said, struck it rich on the lottery or got lucky. Most research will tell you, those people that "fall into money" usually have negative repercussions or blow it all stupidly. "99% are living in a delusion [thinking they'll be rich someday]. You're not going to get wealthy without serving people" ~ John Frederick Demartini
Here's an interesting stat in Corley's study, "88% of the millionaires I interviewed said that saving in particular was critical to their long-term financial success." Being the "Saver- Investor" is the route with the least risk involved and has the best potential for hitting your goal. On Average, if done right, you could potentially be looking at millions within 12 to 32 years with just a little discipline of saving and investing a percentage of your money.
The 3 habits most common among the millionaires Corley interviewed where:
- They automated, and saved 20% of net pay.
- They regularly invested a portion of their savings.
- They were extremely frugal.
Just start with a little percentage of your salary to save at first. Take baby steps and gradually work your way to the 20% mark, if it makes you anxious to go all in. Saving even a little, can add up fast. Most "savers-investors" then take 10% each month, from what they've put aside, to make investments. If you have no clue on investing, try the Acorns app. It's investing for dummies. Or you can seek out an advisor so you know you're doing it right.
Some good investing and compound interest will add up fast and will shock you at how close you are to being a millionaire within 10 years. According to Corley, "Saver-Investors’" wealth grew to an average of $3.3 million.
Being Frugal was one of the most common traits among all different "millionaire types" listed above. Awareness of your money, spending on quality products, and bargain shopping is the best way to maintain your wealth. Too many people rush to spend as much money as they make. This ends up in a paycheck-to-paycheck lifestyle, no matter how much bigger your salary gets. 64% of the U.S. population is living paycheck to paycheck. You'll never achieve wealth that way!
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At first it seem like these changes could be overwhelming, but it's just about creating a habit with your money. If you want to keep more of it, and have less stress about money. Start investing as much as you can now. Even if it's just $1/day or $30/month, that's $365/year which will start compounding faster the more it grows. Once you've established the habit of saving and investing, you'll get addicted to adding more each month. Trust me. I've been doing it for just a few years now, and it's addicting watching it grow.