Have you ever wondered why some people enjoy the high life while others live pay cheque to pay cheque? Is it education, a willingness to take risks, or perhaps simply luck that attracts wealth? Wonder no more. Sarah Stanley Fallaw, research director for the Affluent Market Institute, recently surveyed more than 600 American millionaires to learn the secrets of success. She says anyone can follow in their footsteps, no matter their age or income.
She identified six common behaviors which lead to greater wealth. These so-called “wealth factors” are:
- Frugality, a commitment to spending less and saving more
- Confidence in financial management, household leadership, and investment decisions
- Responsibility for financial outcomes, rather than believing in luck
- Planning and goal setting for the financial future
- Focus on completing tasks, without distractions
- Social indifference, no desire or the willpower to resist purchasing the latest things.
Many people feel financial freedom means spending big, but several of the millionaires surveyed said they feel true freedom comes when you spend below your means, without succumbing to the pressure to live large as society might expect.
"Spending above your means, spending instead of saving for retirement, spending in anticipation of becoming wealthy makes you a slave to the pay cheque, even with a stellar level of income," Ms. Stanley Fallaw wrote in her report, "The Next Millionaire Next Door: Enduring Strategies for Building Wealth."
Her findings support those of Chris Hogan, the author of “Everyday Millionaires: How Ordinary People Built Extraordinary Wealth – and How You Can Too.” He interviewed several millionaires for his book and said it’s no coincidence most are self-made.
"[Millionaires] don't count on anyone else to make them rich, and they don't blame anyone else if they fall short," Hogan wrote, echoing Ms. Stanley Fallaw’s findings about responsibility. "They focus on things they can control and align their daily habits to the goals they have set for themselves."
Because they focus on achieving their goals, as Ms. Stanley Fallaw asserted, Mr. Hogan found 97 percent of millionaires almost always achieve the financial goals they set for themselves.
Do you possess the wealth factors? What areas do you need to work on? Improving your money habits isn’t easy, but Chase Edwards can help. Our friendly money experts can help you set realistic money goals and support you as you achieve them. Call us on 1300 854 833 to learn more about how we can help you improve your finances and grow your wealth.