Plenty of people have become self-made millionaires. But how did they do it? Did you know that 68% of millionaires — with at least a net total of $30 million — were self-made, according to a 2019 study by Wealth-X?
A self-made millionaire, let alone a young one, tends to do things a little differently from the rest of us. Researchers who have studied them over the course of several years learned that many self-made millionaires display different traits and habits that helped them build their success.
1. Ambition
Millionaires are ambitious. If they want something, they will get it. Especially if they are self-made millionaires who put in years of hard work.
Many people want to get rich, but don’t know where to start. For some, they have an idea and they want to focus on just that until they reach their goal.
Many of these millionaires are quite ambitious. They put their nose to the grindstone. So if you have an idea that you want to put into fruition, then get out there and do it already.
2. No Budgets
Somewhat surprisingly, most millionaires do not have a budget that they use.
The personal finance blog known as ESI Money has interviewed many millionaires over the years. At least forty-six of them claim to not have a budget. The blog states that these millionaires will make a lot of money, but only spend a portion.
Self-control seems to be a common factor as well. However, a budget can be good to become a millionaire, though perhaps not being one. A budget helps with wasted spending and the effective use of money. However, once you retire and have surpluses of cash on hand, who needs a budget?
3. Frugality
Another interesting concept that millionaires take a part in is being frugal. They go for coupons, buy in bulk, and look for deals.
This makes sense as they are committed to making themselves rich. That means that they have to be a little more choosy when it comes to what products they want.
This allows them to save money that can then be used toward their goal of being successful. They commit to spending less and saving more.
So if you are interested in becoming rich, then stop buying the famous brands of your favorite products and instead, start going for cheaper, non-brand items.
4. Low Housing Cost
Another trait that they did right was that many live in homes and neighborhoods that are affordable.
By living in these often subpar and even cramped living conditions, they allow themselves to be humbled and focus on building their business.
Eventually, once successful, they can move on to better living arrangements.
5. Savings
Many millionaires like to save their money. How else are they going to get rich? They try to maintain their cash and focus on their work to make more money.
In one study, the median millionaire saved 64% of what they made. That allows them to invest and grow their own business. Then, as they get richer, they have to maintain their savings and frugalness so that they don’t splurge and overspend on things they don’t need.
Remember, time is money. Speaking of time…
6. Time
Time is on your side. These self-made millionaires know that time is money. They value their time a lot more than other people.
So if you are a go-getter, then don’t waste your time doing things that are not getting you closer to your goal.
(In fact, finish reading this article ASAP and go make yourself rich!)
7. Side Hustles
Many millionaires have a side hustle that helps them explore other areas and options while being employed.
Millionaires who have hobbies and can transform that interest into income will be more successful at becoming a millionaire. Plus, the more jobs and side hustles you have, the more money you make.
However, it’s important to note that side hustles can lead to more money problems as well. Be sure to make smart financial options and even talk to a financial advisor about any concerns you have. You want to make money, not lose it!
8. Invest, Invest, Invest
Millionaires — when they become millionaires, that is — also love to get into real estate.
Real estate has many pros to it such as cash flow, tax advantages, leverage, and more. They also tend to invest in low-cost index funds. These index funds have high returns and low costs, leading to an entrepreneur’s wealth being grown substantially. They are also diverse and have a low cost.
Millionaires also love to plan to invest. Compared to other people, they plan to invest an average of 10.5 hours a month.
