There are 4 main paths to becoming a millionaire—and this is the easiest one, says money expert

  
Via:  krishna  •  3 weeks ago  •  8 comments

There are 4 main paths to becoming a millionaire—and this is the easiest one, says money expert
Unless you were born into a rich family, building wealth can be very hard — depending on the path you choose.

S E E D E D   C O N T E N T


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Bugatti’s one-off La Voiture Noire supercar, which sold for nearly $19 million. Source: Bugatti


Unless you were born into a rich family,  building wealth  can be very hard — depending on the path you choose.

Many people look at  multi-millionaires  and desperately want to know: What’s their secret? How did they get there? What does it  take ?


Those are the things I wanted to know back in 2004, when I began my “Rich Habits”  study, in which I spent five years interviewing and researching the daily activities, habits and traits of 233  wealthy individuals . All of them had at least $160,000 in annual gross income and $3.2 million in net assets.


During my research, I found there are four predominant paths toward accumulating wealth. The “Savers-Investors” path is the easiest, while the other three involve much more risk.

1. The Saver-Investors path



Just less than 22% of the millionaires in my study chose to take the Saver-Investors path. Not only is it the easiest way to build wealth, but if you  start early , it almost always guarantees a lot of money.

The Saver-Investors in my group reached their first $1 million around their mid-to-late 30s, and accumulated an average net worth of $3.3 million by their mid-50s.

They also had four things in common:


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Krishna
1  seeder  Krishna    3 weeks ago

Just less than 22% of the millionaires in my study chose to take the Saver-Investors path. Not only is it the easiest way to build wealth, but if you   start early , it almost always guarantees a lot of money.

The Saver-Investors in my group reached their first $1 million around their mid-to-late 30s, and accumulated an average net worth of $3.3 million by their mid-50s.

They typically had a middle-class income (many reached a six-figure salary early in their career, and if they didn’t, they lived  very frugally .)

 
 
 
WallyW
1.1  WallyW  replied to  Krishna @1    3 weeks ago

What are those four things in common?

 
 
 
Krishna
1.1.1  seeder  Krishna  replied to  WallyW @1.1    3 weeks ago
What are those four things in common?

Good question.

'Tis a mystery indeed!

 
 
 
Jack_TX
1.1.2  Jack_TX  replied to  WallyW @1.1    3 weeks ago
What are those four things in common?

From the article....

  1. They typically had a middle-class income (many reached a six-figure salary early in their career, and if they didn’t, they lived   very frugally .)
  2. They had a low cost of living and preferred to save, rather than spend lavishly.
  3. They saved 20% or more of their income.
  4. They started investing their savings early in life and continued to do so prudently for many years.
 
 
 
Krishna
2  seeder  Krishna    3 weeks ago

Approximately 28% of the folks in my study were Dreamers, and they accumulated an average net worth of $7.4 million — far more than any of the other groups — over a period of about 12 years.

All of them told me that pursuing their dreams was one of the most rewarding things they had done in their lives. They loved what they did for a living, and their passion showed up in their bank accounts.

Those who want to take this path, however, must be willing to work long hours and able to handle financial stress

 
 
 
Steve Ott
3  Steve Ott    3 weeks ago

According to SSA.gov I am one year away from retirement. Guess I better start investing  in those lottery tickets.

 
 
 
Krishna
3.1  seeder  Krishna  replied to  Steve Ott @3    3 weeks ago

According to SSA.gov I am one year away from retirement. Guess I better start investing  in those lottery tickets.

Either that-- or go to Vegas .
(Or-- what about the ponies?)
 
 
 
Buzz of the Orient
4  Buzz of the Orient    3 weeks ago

I had a lot more stress and concerns when I was a millionaire successful practising professional with a home in an exclusive area of Toronto, a lakeside home with a boat and 2 snowmobiles, cars for myself, my wife, and my two kids, and a half interest in a Florida golf condominium, investments in a movie and real estate, than NOW when the most valuable asset I have is my camera, living on a meager Canada pension and my wife's income (which is half what my after-tax pension is).  Now the only worries I have are about my declining health and how much more the landlord is going to ask for next year's rent.

 
 
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