It’s easy to look at millionaires and members of the “one percent” club and assume they inherited their wealth or won the lottery. However, research shows that the majority of wealthy individuals have worked hard for their money and made smart decisions. The question is, are you making these same smart choices?
The Truth About Millionaires
In the current political climate, people like to villainize wealthy individuals and make them out to be greedy, slimy individuals who only look out for their own best interests. But nothing could be further from the truth.
According to a National Study of Millionaires conducted by Ramsey Solutions and published earlier this year, 79 percent of millionaires in the United States have not received any inheritance money. In fact, it takes an average of 28 years of working, saving, and investing for a millionaire to reach this seven-figure plateau.
While this research may be somewhat alarming, it should also be encouraging. You don’t need a rich uncle or get-rich-quick scheme to strike it rich. Instead, you can build wealth over time by making smart, disciplined choices.
6 Habits Worth Adopting
Dig a little deeper into the daily habits of millionaires and you’ll find they aren’t spending exorbitant amounts of money on vacations, cars, and jewelry. Instead, they’re practicing smart money management. Here are just a few of the habits they embody:
1. Be Careful With Debt
Very few people can buy everything they want now and be wealthy down the road. In most cases, you have to choose between the two. By sacrificing now, you can reap the rewards of your self-discipline in the future.
In light of this, be very careful with debt. Avoid car loans and credit card debt at all costs. When it comes to signing a mortgage for your home, make sure you understand the implications of things like interest rates, term conditions, loan types, etc. Do your due diligence and only sign when you feel like you’re making a decision that will still benefit you in five years.
2. Plan For The Risky And Unexpected
When you’re trying to be smart with your money and stretch every last dollar, insurance can seem like a waste of money. However, wealthy people actually attribute a lot of their success to having the right insurance policies in place.
While you hope you never need to use insurance, it can save you from unexpected events and emergencies. Instead of having to shell out thousands of dollars to repair a car, pay a medical bill, or settle a lawsuit, you can rely on a policy to cover the cost.
3. Invest Every Month
Investing isn’t something you do here and there. In order to maximize the benefit and ROI, you should invest every single month. It doesn’t have to be a lot, but it does need to be something. Even $200 per month in a growth stock mutual fund can put you on the road to success.
4. Never Invest In Something You Don’t Understand
While investing is important, never invest in anything that you don’t personally understand. That means if you can’t describe what Bitcoin is, how it’s stored, where it can be used, and why it’s valuable, you don’t need to be investing in it.
5. Spend Time With Successful People
Motivational speaker Jim Rohn is credited with saying we are the average of the five people we spend the most time with. And while this may not be a scientific fact, it’s a pretty revolutionary idea.
If you spend time with five lazy people, you’re more apt to become lazy. If you spend time with five wealthy people, you’re more likely to think and act like they do, which will presumably build wealth.
6. Take Care Of Your Health
No amount of money in the world matters if you aren’t caring for your body and prioritizing your health. Eat healthily, get exercise, reduce stress, and don’t engage in unhealthy habits like smoking or drinking in excess.
Building Long-Term Wealth
Very few people become wealthy by winning the lottery, inventing a fad product, or inheriting a padded bank account. The majority of millionaires come into wealth by working hard and making smart choices over many years and decades. As you attempt to build your own wealth, follow their lead. You’ll discover that it really isn’t that difficult.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.