Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
My observation is that some of the self made millionaires dress like crap and don't have the latest and the greatest. You'd never guess how much money they have just by looking at them. A few either are really good with people and are good salesman or they have a creative or innovative idea that they were able manipulate into a workable product.
Yes. Me. I saved money while I was working and now that I'm retired, I'm a millionaire. Not a mega-millionaire like the Clintons, but still a millionaire.
I've known several self-made millionaires over the years, and they all got that way through different means. I had one acquaintance who started with about $1500 that he received in college graduation gifts, invested in dot coms, and got out shortly before the bubble burst. He netted roughly $1.5 million off that, and the last time I saw him he had gone into rental properties and had more than tripled his net worth.
I know at least 3 OTR truck drivers (the ones I've actually discussed money with, I know more truck drivers who may fit the bill but we haven't discussed it) who are worth $1 million or more, and they all got that way by basically living in their trucks for 15-20 years and driving as many miles as they possibly could while making smart investments. Two of them invested in diverse mutual funds, while one invested in real estate. They would all stay out for 5-6 weeks at a stretch, kept the driver's door closed unless they needed to stop for fuel or restroom breaks, and had their trucks set up with mini kitchens so that they could avoid the truck stops. One retired at 45, one retired in his 50s, and last I heard the other one was still driving although he's in his 60s, owns 4 trucks that he paid cash up front for, and is worth well in excess of $2 million.
I worked for a man in my early twenties who ran a handyman business that he started out of an old VW van in the late 70s. By the early 90s he had built the business into one of the largest construction/rehab businesses in south Florida. When he finally sold the business, he netted about $1.5 million. A few years later he sold off the commercial properties that he had built and leased over the years and netted another $4 million or so.
My nephew's grandfather started as a ditch digger, went into business for himself with an old beat-up backhoe, and turned that business into a behemoth. When he finally decided to call it quits, he sold off his equipment and properties for several million. At no point over the years did he ever go into debt. He paid cash for every new piece of equipment that he bought, and he paid cash for all of his properties.
Probably the one that surprised everyone who knew him the most was my old high school history teacher, who as far as we knew had about 3 changes of clothes and half the time looked like he hadn't showered, shaved, or combed his hair in several days. When he retired from teaching, he paid cash for an island in the Caymans and retired there. The last time that I talked to his daughter, he was still living comfortably on his investment portfolio returns.
What did all of them have in common? They had a plan, they had a budget, and they used their money wisely. Most of them were just hard workers who made wise choices, quite honestly. My friend who invested in dot coms still drives an old "bondo buggy" to this day, even though he could walk onto any car lot and drop cash for whatever car he wanted. His rationale is that if it gets him from point A to point B it's good enough.
My parents are self-made millionaires and a lot of what's already been said in this thread is true of them. They both worked and worked hard, saved money, lived within their means, were frugal (but not miserly or cheap), and my dad helped people start up small businesses (lent them money in exchange for a portion of the business). Most of those businesses failed, but one took off. My dad became more involved with that/a more active partner and that business was the real money maker.
I'd say about half of their money came from the business and the other half from saving and the "magic" of compound interest.
I am trying to follow in their footsteps mostly by living within my means and saving as much as I comfortably can. I haven't gotten to the point of wanting to start small businesses... but I am still younger than my dad was when he went down that route. I keep thinking of a way for me and my brother to go in to business together. Maybe some day.
As others have pointed out, it's not hard to have a net worth of $1 million. Plenty of people just do this through house or condo appreciation in places like California and New York. Others do it by saving and investing in their own ideas, or even just index funds.
Now if you want to be a centimillionaire ($100 million or more), the only way to do that is to become an entrepreneur, take a risk, and come up with a product or service that people love using.
I've known very few personally, but I am from an indigent area. I'm sure I run into quite a few millionaires both through my job and in my new community, but I don't know for sure.
That said, most of the millionaires I do know are business owners, from relatively small, several person businesses, to one person I know with several large, high revenue businesses. Most are reasonably frugal and avoided large personal mistakes (unplanned child, costly divorce, etc).
I don't know of any personally who have done it through just saving and investing.
I know lots of self-made millionaires. Common traits:
- Spend less than they earn
- Invest wisely
- Make good strategic moves for the long haul
- Live in less house and buy a lower cost car than they could afford
Wow, I don't run in those circles, I don't know anyone that inherited anything that big.
My friend is very smart, became an engineer, and was involved in several start-ups that failed. Then he invented some sort of internet technology, hired some smart business managers to help launch it and he became a millionaire overnight when it went public. He still works hard with an entrepreneurial spirit, getting involved in several projects over the years.
Do you know any self-made millionaires? And if so, what are the most consistent traits that you see among them? We're talking about people who were able to go from being a member of the middle class community, to becoming a millionaire. Do you find that there's any general commonalities among people who were able to achieve millionaire status?
Yes, I know 12 of them.
They were known as the " Holdingford Lunch Ladies" because most worked in the school cafeteria.
They invested $.25 each week to buy one Powerball ticket.
They won the jackpot ( along with an individual in another state and thus got half)
Their half of the jackpot was around $24 million so they each received $2 million.
The secret was investing 25 cents a week in the right investment.
Are you just talking about just cash assets or property, IRAs, bonds, stocks, real estate, etc? Becoming a millionaire isn't that hard these days. If you are disciplined enough, and squirrel enough money away every single year into an appropriate savings mechanism with a high enough interest rate... in 20... 30... 40... years you can become a millionaire. If that is your goal.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
