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.
Now how would you know there are no Millionaires responding on that thread? You don't.
A lot of those who are financially secure do not flaunt their wealth with fancy cars, lots of jewelry and big homes.
They tend to their business, keep their personal and professional lives out of the spot light and live a nice quiet uninterrupted by BS life with their families.
I should have phrased my question to reference multi-millionaires. I mean people that have a net worth of at least 5 million, I doubt such a person would be on CD. And I'm too nervous about going up to a mansion, knocking on the door, and picking the owners brain.
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?
There is a good and a bad too it. Our household qualifies, so I'll talk about it. Here are some characteristics of those who make it:
1. Two spouses working full time.
2. Professional or similar paying employment.
3. No physical or mental health issues that preclude work during most of the years from 25 to at least age 55.
4. Investing a certain percentage of income. Taking full advantage of a 401K account at work. In fact, one should contribute much more than the minimum amount to a 401K.
5. Purchase of more than one home or property.
6. Avoiding addiction to alcohol, drugs, or cigarettes.
7. Flexibility. A willingness to change investments. A willingness to take a short term loss and move on when something doesn't pan out.
8. Avoiding divorce.
9. Having a reasonable sized family (1-3 children)
10. Avoiding excessive spending. I buy a new car about every seven to eight years. My wife and I have learned how to shop a lot of sales for things we need. At this point, that's more a habit than a need.
Accumulating assets for financial security is an important goal in life. I want to share the story of someone who went too far with it though. This is a family I lived about a block away from during most of my years growing up.
Smith worked as an electrician. Saving money was important to him. He took his family on vacations about once every 4-5 years. He owned the same cars for 10-20 years. His home was small and he literally had to "double-bunk" his kids. His son slept in an unfinished basement. He helped none of his children go to college. He didn't believe in taking his family to the zoo, the aquarium, or sporting events. All those things cost too much money, he thought.
I know Smith's only son well today. We talk frequently. He conceded that Smith made about a $1,000,000 investing his savings in the stock market. Nevertheless, the son resents Smith deeply. He says he never had a real father-son relationship with him. They never got to go anywhere. They never did anything. He frequently wore secondhand clothes when he knew his father could have least bought new clothing at a store like Kmart or Sears. The son ended up dropping out of school to become an electrical engineer. He primarily did this because he couldn't afford schooling and he had to work full time. Smith wouldn't help him, but discouraged him from applying for student loans. Now that my friend is in his 50's, he thinks its too late to try and complete his degree.
My point is that while saving money is good its important to have a balanced life as well. If one does without a family or fails to do the minimal things to create a good family life than retirement savings may seem pretty hollow at the end of life.
Many of us count our wealth not only in money, we count in the joy and blessings that a happy family can provide us. Fortunately, I have many friends who were raised differently than Smith's son. They all learned the value of a balanced life and are passing that on to their children.
I should have phrased my question to reference multi-millionaires. I mean people that have a net worth of at least 5 million, I doubt such a person would be on CD. And I'm too nervous about going up to a mansion, knocking on the door, and picking the owners brain.
Part of your problem is that you have such limited vision.
Why wouldn't someone with $5 mil be on here? Again...not that much money.
Part of your problem is that you have such limited vision.
Why wouldn't someone with $5 mil be on here? Again...not that much money.
I'm talking about a person who's serious about getting their guap... Compared to some, 5 million isn't a lot... Compared to most, 5 million is a lot...
Citydata is the top 378 site in the USA according to Alexa.
There are about 1.108 million millionaire households in the US in the $5million-$25million category. There are also 132,000 households 'worth' over $25million+ . Millionaire Households Back to Pre-Recession Levels
I feel millionaires would be more attracted to a site/forum like this , especially the economics thread versus many other websites. I'd be willing to bet that there are many from both categories that have been on this site.
The odds seem pretty good.
Also keep in mind, this these numbers are just from the U.S. and of course there are millionaires in other countries and they have access to the internet too.
I'm quite sure that my dentist is one: he was the son of a man who ran a tailor shop. When he got his DDS he came back to our home town, went into partnership with a couple of people in the same boat. Some sold out to him and moved on, but otheres stayed on and new people came in. I also know that, like myself, he made some investments in common stock, in a field with which he was familiar, back in the days when capitalism hadn't yet come back into fashion.
Like anyone starting out, he paid the price; lots of very long days in a highly-structured occupation where no one could fill in if he wasn't there. But eventually the operation got on its feet, and he now actually practices only about 16-20 hours a week. But the still does the people who were his customers when he was just starting out, and we trade stock tips now and then.
Yes... most started with an idea and built a business... most in construction and real estate... at least the one's I know... not counting the Bay Area folks with stock options...
Many still live in the same home for decades and most are fugal... their kids and grandkids not so much.
As for characteristic, I would say intelligence is number one, then a good work ethic, and finally, they have their emotions under control to overcome the troubles life throws everyone.
I agree with all of the above, but I would rank order their importance differently. Here's how I'd rank them in order of highest importance first:
1. Have emotions under control. (It doesn't matter how high your IQ is if you have major emotional problems).
2. Good Work Ethic.
3. Intelligence: I think this could almost tie with work ethic, but ultimately, I think a person with average intelligence and a great work ethic will have the edge over someone with above average intelligence & an average work ethic.
Quote:
Originally Posted by henderson702
One more, they usually surround themselves with morally responsible people and wise people. NO dummies are allowed in their lives. They cut off losers immediately.
Generally agree.
Last edited by mysticaltyger; 05-11-2015 at 02:51 PM..
I think that a common theme is planning . I'm sure it's possible to be a multi millionaire with little planning but then it seems that those people are likely to lose the money.
Yes, absolutely. Research has found people with a propensity to plan typically have more saved/invested than people who don't (the majority, unfortunately).
Quote:
Originally Posted by jm1982
People seem to get in trouble when they think the money will never stop coming in. Industries, relationships, and economies change .
This is the one thing that really drives me crazy about people. Everyone KNOWS our economy is dog eat dog, but so many folks won't even do basic things to protect themselves from the vicissitudes of the job market.
That is way too much of a blanket statement. That applies if your working a typical 9-5, working like a mule and making $40-60K a year. However, do you know how hard it is for a business to even make $40K a year profit? And that's with the owner break their back. So let's say someone has a good job where they have a relatively large amount of autonomy, don't have to work too hard and they make $100K; why in the world would he go start his own business and bust his ass for the sake of "ambition?" Even if that business makes him $100K a year in profit, that wouldn't be a smart move.
Instead the smart individual in that position will keep the low stress job and invest savings from that job and make a ton of money with little effort. That is the smart play regardless of how much ambition you have. That's why you see many doctors and lawyers working for others. The answer to riches isn't to always blindly go out and start a business because you possess "drive and ambition."
Yes, this describes me perfectly (except the part about making 100K). I really don't think there are too many low stress jobs out there that pay 100K.
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.
