Becoming a self-made millionaire is often shrouded in mystery and admiration. While there’s no secret formula for wealth, a closer look at the lives of those who have achieved this status reveals common things that set them apart from the average person. Here are 15 things most self-made millionaires do that regular people don’t.
1. They’re Frugal
Frugality isn’t just about cutting coupons; it’s a lifestyle choice that separates self-made millionaires. They understand that accumulating wealth isn’t about how much you earn but how much you keep. By prioritizing saving over spending, they ensure their financial stability and freedom. This approach allows them to make decisions based on their future financial goals rather than immediate desires. Ultimately, frugality is about valuing financial independence more than material possessions.
2. They Keep Their Housing Costs Low
Contrary to the popular belief that a big house signifies success, millionaires often choose modest living spaces. They typically select homes that don’t stretch their finances, enabling them to invest the surplus in more lucrative opportunities. This decision reflects a strategic approach to wealth building, where every dollar saved on housing can contribute to future financial gains. The median home value for millionaires shows they prefer comfort and functionality over extravagance. This choice underscores their commitment to long-term wealth accumulation rather than short-term appearances.
3. They Save a Lot of Their Income
The saving habits of self-made millionaires reveal a disciplined approach to financial management. By saving a significant portion of their income, they create a buffer allowing investment in wealth-growing opportunities. This practice is not just about setting aside money; it’s about making the foundation for financial independence and security. The ability to save aggressively distinguishes millionaires from those who live paycheck to paycheck. It’s a testament to their focus on future prosperity over present consumption.
4. They Don’t Budget
Interestingly, many millionaires operate without a strict budget. Their high income and disciplined spending habits naturally lead to substantial savings, making detailed budgeting less critical. Instead of micromanaging every expense, they focus on maintaining a broad strategy of spending less than they earn. This doesn’t mean they’re reckless with money; on the contrary, it reflects a high level of financial self-control. The absence of a budget signifies their confidence in managing finances effectively without needing to track every penny.
5. They Take on a Side Hustle
Income diversification is a crucial strategy among self-made millionaires, often achieved through side hustles. These additional ventures increase their earnings and allow them to explore their passions and interests. Creating multiple income streams mitigates financial risks and accelerates wealth accumulation. Side hustles provide a practical avenue for financial experimentation and growth. This entrepreneurial spirit is common among millionaires, showcasing their willingness to invest time and energy into potential additional income sources.
6. They Invest in Real Estate
Real estate is a favored investment among millionaires because of its potential to generate passive income and appreciate over time. This tangible asset offers stability and diversification in their investment portfolio. The tax advantages and leverage real estate provides are particularly attractive, enhancing its appeal as a wealth-building tool. By strategically investing in property, millionaires capitalize on the opportunity for both immediate cash flow and long-term capital gains. Their involvement in real estate underscores a comprehensive approach to accumulating wealth.
7. They Invest in Low-cost Index Funds
Many self-made millionaires opt for low-cost index funds as a cornerstone of their investment strategy. These funds offer broad market exposure, reducing the risk of picking individual stocks. The low expense ratios of index funds mean more of their money is working for them, maximizing potential returns. This preference for index funds illustrates their appreciation for simple, effective investment solutions. It reflects their understanding that keeping investment costs low is crucial for long-term financial success.
8. They Spend More Time Studying and Planning for Investments
Millionaires dedicate significant time to studying and planning their investments. This commitment to research ensures they make informed decisions that align with their financial goals. Spending hours analyzing markets and investment opportunities allows them to stay ahead in the wealth accumulation game. This proactive approach is fundamental to their success, highlighting the importance of continuous learning. Their investment strategies are not based on whims but on careful and deliberate planning.
9. They Put More Energy Toward Personal-growth Activities
Commitment to personal growth is a hallmark of self-made millionaires. They invest time in reading, exercising, and other activities that enhance their knowledge and well-being. This dedication to self-improvement is not just about personal satisfaction; it’s about maintaining the mental and physical stamina required to sustain success. By prioritizing these activities, millionaires ensure they have the resilience and intellect to navigate wealth-building complexities. Their focus on personal development underscores the belief that a well-rounded life contributes to financial success.
10. They Sleep Less and Work More
Self-made millionaires often trade extra hours of sleep for productivity. They understand that time is a limited resource and strive to maximize its use. Rising early is a common practice, allowing them to tackle important tasks without interruption. This commitment to maximizing their workday underscores a relentless pursuit of their goals. While they may sacrifice sleep, it’s a calculated decision to advance their ambitions.
11. They Think More
Dedicated thinking time is a non-negotiable part of a millionaire’s daily routine. This solitude is used for strategizing, setting goals, and solving problems. By carving out time specifically for thought, they ensure that their actions are guided by careful consideration. This practice allows them to focus on their objectives and anticipate future challenges. The discipline to think deeply regularly is a key factor in their ability to achieve and maintain wealth.
12. They Don’t Follow the Crowd
Millionaires often reach their status by going against the grain. They recognize that following conventional wisdom doesn’t lead to exceptional success. They set themselves apart from the majority by daring to be different and taking calculated risks. This independence of thought allows them to explore unique opportunities and innovate. Their success is a testament to the power of individualism in achieving extraordinary results.
13. They Ask for Feedback
Feedback is invaluable to self-made millionaires. They seek it out, understanding that it provides insights for improvement and growth. Whether positive or negative, feedback helps refine their strategies and decision-making. This openness to criticism reflects a mature approach to personal and professional development. By valuing external perspectives, millionaires continue to evolve and adapt in their journey toward success.
14. They’re Resilient, and They Persevere
The path to wealth is fraught with obstacles, but millionaires distinguish themselves through resilience and perseverance. They view failures as learning opportunities, not setbacks. This tenacity drives them to push through challenges, constantly striving for their goals. Their ability to bounce back from adversity is critical to their success. It’s this relentless pursuit of their objectives that underpins their financial achievements.
15. They Prioritize Four Relationships
Millionaires understand that they cannot achieve success alone. They prioritize relationships with mentors, coaches, cheerleaders, and friends. These connections provide guidance, motivation, accountability, and support. Having a mentor, in particular, can accelerate their journey to wealth by offering wisdom and experience. This strategic approach to relationships emphasizes the importance of a strong support network in achieving and sustaining wealth.
