5 Money Moves That Will Make You Rich, According to Survey of 10,000 Millionaires
One of the best ways to become a millionaire is to study the ways of those who have already succeeded.
Not only have millionaires charted a path to generating a seven-digit net worth in the first place, they’ve shown they know how to hang on to that money once they have it. These are valuable lessons for anyone looking to reach that mythical millionaire status.
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To break down the specifics, Chris Hogan, radio host and author of the book “Everyday Millionaires,” surveyed more than 10,000 millionaires to get their stories regarding how they earned and kept their million dollars. Here are the five money moves that stood out.
Make a Plan
Although there are exceptions, for the most part, millionaires are planners. According to Hogan’s survey, millionaires are intentional about getting out of debt, they leverage retirement plans like 401(k) and 403(b) plans, and they chart out a path towards getting wealthy.
For example, they may plan to increase their retirement contributions by 10% per year, buy a new rental property every five years, or set net worth goals every decade and find ways to reach them. While there are countless paths to becoming a millionaire, most of them make some type of plan to get there.
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Spend Less
One of the most common pieces of financial advice that you’ve likely heard already is to live within your means. In other words, don’t spend more than you make. And guess what? Millionaires are on board with this idea, too.
In fact, in many cases it’s actually a big contributor to their wealth. According to the survey, a whopping 94% of millionaires live on less than they make, compared with 55% of the general population. When you live on less than you earn, you can use that “excess” cash flow for savings and investments, and that’s one of the most reliable paths to wealth.
Look for Deals
Many people think of millionaires as flashing cash around, showing off expensive cars and eating at fancy restaurants all the time. But according to Hogan, this is the exact opposite of reality.
Survey results show that an incredible 93% of millionaires use coupons when shopping, and they tend to spend $200 per month or less on eating out at restaurants. What this means is that a lot of the people who flash money and go out to eat every day aren’t actually millionaires, they just want to live what they think a millionaire lifestyle is.
The truth of the matter is that it’s much easier to actually be a millionaire if you save your money rather than spending it.
Make a Budget
Making a budget sounds boring and time-consuming to many people, but it’s an incredibly helpful tool if you want to track your income and expenses and build wealth. Survey results show that the vast majority of millionaire respondents — 93%, to be exact — said they create and stick to a budget.
This is one of the best ways to ensure that you live within your means and follow through on your wealth-building plans. If it’s a solid enough strategy that 93% of millionaires do it, it’s probably a good idea for you to create a budget also.
Stay in Control of Your Money
Perhaps one of the most interesting survey responses from the millionaires was that they almost unanimously believe that they control their own destiny when it comes to creating wealth, with 97% responding in the affirmative. This is in contrast with just 55% of the general population who share the same belief.
As this can be something of a self-fulfilling prophecy, it’s a good money move to gain the knowledge and confidence you need to truly believe that you will create your own wealth on your own path.
The Bottom Line
Every millionaire is different, but there are some common beliefs and strategies that apply to the vast majority of them, at least according to the results of Hogan’s survey. By and large, the 10,000 millionaires in the survey claimed that they actually act quite frugally — eating at home, using coupons, making budgets and living below their means.
The bottom line is that if you look at how millionaires think and act, it seems as if having the right knowledge and mindset — and then not being afraid to take control of your destiny — can put you on the path to long-term success as well. Even if you don’t earn a huge salary, being able to save and invest every month, and having a long-term plan, could be enough to get you to millionaire status by the time you retire.
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This article originally appeared on GOBankingRates.com: 5 Money Moves That Will Make You Rich, According to Survey of 10,000 Millionaires
