Success doesn’t happen overnight. It takes a strong determination and an understanding of smart money strategies to become wealthy, as many successful self-made millionaires have learned over time. But just how do some people reach such a great level?
What steps did they take and what advice can they offer the rest of us who are still finding our way to wealth?
What are the personality traits of self-made millionaires that the rich people know that most of us don’t know?
Self-made millionaires are recognized for their achievements and self-determination. After all, it takes a lot of hard work, dedication, and self-discipline to make it from rags to riches. In fact, data show that more than two-thirds of individuals with a massive net worth of $30 million or more have earned it all themselves.
Although self-made or wealthy by birth no matter which type of millionaire you are, there is one thing they have in common; they prioritize to save money and diversify their investments. By doing this they ensure they continue to prosper into the future – an impressive feat!
In this blog post, we’ll explore the stories behind some well-known self-made millionaires and learn from their examples in hopes that you too can make your first million one day!
- They don’t diversify their investments right away!
- They all tried to save as much as they could
- They are not afraid of failure
- They know that debt is for businesses and not people
- Homeownership isn't always their first investment
- They always buy in bulk
- They invest in their network
- They were never content
- They do not waste time trying to do everything themselves
- Instead, cash-flow real estate is the place to protect and grow money.
- They have mentors
- They look for feedback
- Have multiple streams of income
They don’t diversify their investments right away!
Becoming a self-made millionaire is no a piece of cake and often involves taking risks that not everyone is willing to take. Many millionaires, especially the wealthiest, often put all their chips on the table by investing heavily in some of their own business or project and only choose to diversify after they start generating a steady income.
Take Elon Musk, for example; this famous entrepreneur selflessly invested his $22 million proceeds from selling Zip2 into PayPal, making him more than eight times what he initially invested.
With newfound riches from his stock sale of PayPal, he decided to invest in Tesla, SpaceX, and many other endeavours, firmly establishing himself as one of the most successful entrepreneur in the world with a hundreds of billions of dollars fortune!
They all tried to save as much as they could
Isn’t this the most challenging thing to do? But this is what got many people to earn their first million!
Many wealthy people preach the same tried and true money advice: hold on to what you’ve got no matter what. While interest rates may be lower than in times past, it’s still wise to fill 401(k) and other investment accounts with your hard-earned cash. This guarantees that your money is able to grow over time as it rubs shoulders with the wealthy folks all across Wall Street. Sure, investing isn’t always a jam, but by following the self-made millionaire mantra of “…save more, live less…” you can slowly build a nest egg that will last into your golden years.
So why not take their advice? You never know; this kind of small move today could lead to life-changing financial success tomorrow—it worked for them!
They are not afraid of failure
Fear of failure stops us from taking risks but rich people understand that failure can lead to the path to success.
They take calculated risks, playing out each scenario in their heads until they are sure that it is worth pursuing. Once they have made their mind up it is full force ahead – no half measures or self-doubt here!
The lessons learned from failure give them invaluable insight into how best to achieve the goal next time around. This anticipation for growth and a better tomorrow through learning continues to drive many self-made millionaires to greatness.
They know that debt is for businesses and not people
On their way to becoming a millionaire, successful people generally decided not to buy nonessential items like designer clothes or expensive homes.
That’s one of the many personality traits that helps them in saving money in different ways. Instead, they invested in tangible measures such as purchasing stocks or putting money into assets or a business that could actually yield returns – often even paying with cash for multiple residences so as to avoid costly interest charges.
Some swear by taking on different types of debt as a fast-track formula but it’s believed the true path lies within aiming at efficiency and using money sparingly; who knows what can be achieved if we just focus on investing our resources wisely!
Homeownership isn’t always their first investment
Being self-made has taught millionaires one key lesson: when it comes to their money, they need to make sure that they get a return on what they’re spending.
That’s why, though you may think buying a primary residence is the ultimate dream of everyone, it rarely became the priority for some millionaires as they could possibly find better returns in stocks or setting their own business. Sure, a home can be a smart investment and white picket fence dreams can come true —but you have to look at the monetary costs too. Once you have enough money saved up, you can comfortably invest in buying houses for cash — something few people ever accomplished due to mortgages and interest payments.
The joy of homeownership paired with careful investments has enabled millionaires to stay wealthy and secure their future.
They always buy in bulk
All millionaires who amassed a huge net worth follow this principle – they always buy in bulk whether its products or services; they understand the value of every penny they spend.
They are willing to invest a little more money up-front if it allows them to get a better deal on each unit purchased, and cuts down on the time spent going through the same motions when having to repurchase items.
By buying everything that does not expire in bulk, self-made millionaires are able to save a great number of resources, both financially and at opportunity costs. In turn, this allows them to continue honing their skills and growing their empires. The wealthy’s understanding of price per unit is wise and will undoubtedly lead anyone directly toward wealth.
They invest in their network
Another less-known personality trait of millionaires it that they invest and take risks. Not just financially, but also in the building of relationships. Connecting with like-minded individuals often leads to more business opportunities and can result in speedier decision-making and higher profit margins.
A self-made millionaire’s financial portfolio thrives through relationships that were previously built up, which often leads them to be chosen over other qualified buyers by sellers. This trust can lead them to achieve greater success and bigger returns as investors due to their strong relationships.
Therefore, it is clear that self-made millionaires know the power of investing in solid connections, making friends in business and constantly looking for ways to establish new networks and strengthen existing ones.
They were never content
The self-made millionaire’s successful track record with some of the wealthiest people in the world speaks for itself.
They are never satisfied with their current accomplishments. Instead, they stay focused on the achieving the next thing. It is this relentless drive that helps make these millionaires succeed – self-made, driven, and never content with where they already are.
Whether it is a new idea, business venture, or investment opportunity, these self-made millionaires remain continuously curious about opportunities to keep growing their wealth.
They do not waste time trying to do everything themselves
The wealthy understand that something money can’t buy is time. Unfortunately, no amount of money can purchase more of it.
So how do self-made millionaires maximize their most scarce resources and build wealth?
The answer lies in understanding that the need for control over every single detail takes away valuable time. Instead, self-made millionaires let go of this urge and learn to effectively outsource and delegate to smart, qualified people capable of taking care of details on their behalf.
It’s a skill related to being successful – trading off time for money in order to get the most done with the least amount of effort expended.
Instead, cash-flow real estate is the place to protect and grow money.
One of their very common personality traits is that rich people put their money into cash-flow real estate.
With cash-flow real estate, you can make passive income off of monthly rent after your mortgage payments, property taxes, and maintenance are paid. Unlike a primary residence where you need to find someone who will envision living there when you sell a profitable rental property all you have to do is find someone who wants to profit. It’s an easier process and can lead to greater financial benefits down the line.
So if becoming self-made is your goal, consider investing in cash-flow real estate.
They have mentors
Self-made millionaires understand the importance of leveraging knowledge and expertise to achieve success.
Having a mentor helps you skip a lot of trial & error. Having the self-awareness to admit they don’t know everything and the smarts to reach out to experts on different subjects is a key factor in why these millionaires are where they are. They do not mind trying out a new course or trying to go for different ideas.
By tapping into different perspectives and insights, they use this data to their full advantage within their savings and investments. It’s clear that doing so pays off in both the short and long term!
They look for feedback
Self-improvement is a nonstop journey – never settling for “good enough” – its one of the personality traits which gives the millionaires ability to stay focussed.
Highly self-driven, self-made millionaires are constantly self-regulating and assessing not only their own performance but also the performance of their business. This ongoing cycle of self-evaluation coupled with an unwavering dedication to improvement means that self-made millionaires can better identify blind spots or areas where even more growth is possible.
Greatly improving the chances that their ventures will be successful in the long run.
Have multiple streams of income
Wealth and self-made millionaires shouldn’t be seen as just one big pot of a single form of income. In fact, self-made millionaires often have income coming from many different places.
From salaries, dividends from investments, income from rental properties, or investments in business enterprises – the self-made millionaire knows the secret of money coming in various types of streams.
There’s even “passive” income that can make a self-made millionaire truly live the life they have made for themselves; earning money without actively spending time on the enterprise itself. Building multiple sources of income is one of the most essential personality traits if you wish to increase your net worth!
Being a self-made millionaire isn’t an easy feat, but with the right strategy and dedication, it is possible to stay focused on your ideas and eventually become a millionaire. Those who have found success demonstrate that diversifying their investments, leveraging debt to build businesses, tapping into real estate opportunities, building strong networks, and seeking feedback are all important wealth multipliers.
In addition to those key habits, they have developed a culture to save as much money as possible which they can easily access and look for multiple streams of income. These personality traits give them the ability to become millionaires by setting them up for long-term wealth rather than pursuing shortcuts or overnight success ideas.
Doing a successful business with the right amount of information is the first step to take if you wish to have enough wealth that you could not hinder from making any purchase. Following this advice is not only inspiring but can also result in many positive changes creating a sustainable life for you and your family and friends.
Stay connected to Our Cubicle for more amazing content.
Find out about the best personal finance podcasts here. Who knows, maybe you’re the next millionaire!