April 6, 2019

Millionaires Myths and Actions

Myths:
Inherit their wealth 
Only 3% inherit a million dollars, most inherited much less. 4 out of 5 millionaires are self made. They planned, worked hard, and sacrificed.
Attended prestigious colleges
- Half went to state universities, and 10% did not go to college. However 4 of 5 have bachelor degrees.
Have high salaries
- 1/3rd never made $100,000 in a year. Higher incomes do allow more savings.
Get Lucky Taking Big Risks 
- Building wealth is a long term play. Businesses / investments are studied to manage risks
Borrow large amounts of money 
90% never took a business loan, and 80% didn’t borrow from family.
Are all men 
Split pretty evenly.
Live in Luxury 
- Most own modest homes and don’t drive new cars.

What millionaires do:
- Live within their means. Won’t see credit card debt.
Save 20% of what they make, often through 401Ks. Okay to start with less.
Work longer every week. Possibly a side business to become self employed.
- Are resilient and persevere with their plans after setbacks. 
Read books twice as much. 5.5 hours vs. 2 hours per week average.
Exercise twice as much for their health.

What you can do:
- Start where you are
- Volunteer for work assignments and look for opportunities.
- Start side business.
- Add skills or certificates. 
- Increase your 401K deductions with every raise.
- Prioritize spending to avoid impulsive buys.
- Reward yourself time with family and friends.



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