What is your current wealth
One woman who spoke to 600 millionaires says that wealth depends on 6 factors
You too can get rich if you make the right choices. However, if you have certain character traits, then your chances of getting rich are greater, reveals Sarah Stanley Fallaw, director of research at the Affluent Market Institute.
She co-wrote the book "The Next Millionaire Next Door: Enduring Strategies for Building Wealth", for which she spoke to more than 600 millionaires in the US, and identified in it the character traits that are essential for prosperity be valid. She came across six behaviors that she calls wealth factors and considers indispensable if you want to build up proud equity - regardless of your age and income:
- Thrift: the willingness to save, spend less and stick to a fixed budget
- Self-confidence in matters of financial management, investment and housekeeping
- responsibility To take care of your income and your expenses and to know that luck only plays a small role
- Planning preparation: setting goals for your financial future
- Focus: The ability to see tasks as a whole without being distracted
- Social disinterest: not succumbing to social pressures and having to buy everything new right away
During her research, Stanley Fallaw often noticed that people have acquired frugality as a quality. Spending money is not difficult. However, if you want to be successful - and wealthy - you should be thrifty in order to be able to achieve financial independence.
"If you live beyond your needs and spend money instead of saving for your retirement, and spend money expecting to get rich from it, you become a slave to your paycheck even if you make a lot of money," she writes. To build wealth, you should save 20 percent of your income and spend the remaining 80 percent.
Make long-term plans with your money
Confidence is also an important quality that will help you live frugally. In a blog post by Gen Y Planning, financial planner Sophia Bera writes: “It takes self-confidence to live your needs.” However, it also takes self-confidence to invest properly instead of making investment decisions based on your emotions. As certified financial planner Shelly-Ann Eweka explains to Business Insider, at best you should live according to a long-term investment plan.
You cannot invest or manage your own money if you cannot take responsibility for your expenses. Like Stanley Fallwa, Chris Hogan, author of Everyday Millionaires: How Ordinary People Built Extraordinary Wealth - and How You Can Too, thinks that many self-made millionaires like to take personal responsibility. This means that they did not achieve their prosperity simply by being lucky.
Focus on things that you can control yourself
"Millionaires don't count on anyone else to make them rich and don't blame anyone else for failure," Hogan said. "They focus on the things that they can control themselves and adapt their daily habits to the goals they have set for themselves." Hogan also found that people are more likely to be rich when they are particularly goal-oriented and ready to do so are to work hard, plan financially and focus on their own plans. 92 percent of the millionaires he surveyed have a long-term plan for their finances. 97 percent almost always achieve the goals they have set for themselves. These goals make it easy for them to set themselves apart socially and only spend time doing things that result in direct success. So they don't feel pressured to have what others have either.
As Hogan puts it, "millionaires avoid distractions and don't let themselves be blinded by anything that seems like gold." So if you want to get rich, you should not only pay attention to today and tomorrow, but also consider long-term consequences and learn, proactively to think and plan.
This text was translated from English by Jessica Dawid
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