Who Wants to Be a Millionaire?

by financialmom on July 16, 2010

in Financial Plan, Investing, Money

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If I asked every person in this crowd whether they would like to be a millionaire, I think every one of them would raise their hand. We seem to want to be millionaires – at least in theory, but are we willing to actually do what it takes?  Would it help you to know some of the characteristics of millionaires to answer that question icon smile Who Wants to Be a Millionaire? ?

Check out the following characteristics of millionaires, from the book The Millionaire Next Door, by Thomas Stanley and William Danko, and decide if you are willing to commit to being a millionaire. 

Pay attention to what millionaires may not be as well:

Business Owners

Yes, that’s correct – most millionaires are business owners or entrepreneurs of some sort.  And they choose the right business or occupation. Who do you think of when you think of probable millionaires?  You most likely think of  large business owners, or people with high profile occupations like doctors or lawyers.

The truth is far from this. Many millionaires are small business owners, like your local cleaning service owner.  Or if they are employed, their occupation is most likely a teacher.  Thus the name The Millionaire Next Door – since you would be very surprised at who might be a millionaire in your middle class neighborhood.

Frugal

Millionaires get to be millionaires by taking care of their money, both to get money, and then to keep their money. Usually both spouses are frugal.  Notice I am not saying they are cheap.  Millionaires have a spending plan (budget), and know where their money is going, in specific categories such as food, clothing, and housing.

Millionaires play good offense (income), and stellar defense (spending) in the financial game. See the previous blog post if you haven’t already on Winning the Financial Game for more information on this.

Discipline

Millionaires are willing to work hard, be disciplined, and sacrifice to get to their goal of financial freedom. This is where most of us  will lose the commitment.

As much as we all want to be millionaires, most of us are not willing to pay the big price of what it takes to get there – lots and lots of work. You may have to give some stuff up.  We all want to have our cake and eat it too.  Unfortunately that doesn’t come until you are financially free.

Investing

Millionaires have sound investment habits.  They take the extra time required to educate themselves about the financial world.They make it a priority to pay attention to their investments, and spend more time managing their money than the rest of us are willing to do.   They are not afraid to seek out professional advice to help them get to their financial goals.

College

Good news – there is nothing in The Millionaire Next Door book that says millionaires are more likely to be good students, or have higher education.  It does say fully funded college tuition funds for their children and grandchildren are a priority for millionaires. So even if they may not have gone to college, they want to make sure their children and grandchildren have the opportunity to do so.

Mortgage

I know what you are thinking.  Millionaires must have whopping big mortgages.  Wrong again.Most millionaires have paid off their mortgages.  (It’s all part of the good offense – stellar defense concept.)  Millionaires know too much debt will stop them from their goal of financial freedom.

Goals

Millionaires have goals, and they are in writing.  They not only have short-term goals, but long-term goals as well, that include all aspects of their life, including the financial. And by that I mean a lot of goals -  daily, weekly, monthly, yearly, and lifetime goals.

Net Worth

Millionaires don’t focus on their income, they focus on building their net worth.  What they care about is building their net worth to the point where they don’t ever have to work again if they choose not to. And then they build it some more, so they can give a bunch of it away.

John Maxwell says, “Successful people do the things that unsuccessful people are unwilling to do.”  Are you willing to do what it takes to be a millionaire?  Read The Millionaire Next Door, and Millionaire Women Next Door for more interesting information on characteristics and habits of millionaires.  You will be surprised at what you see.

New Profile Pic 2599R Who Wants to Be a Millionaire?Pamela Otten is CEO of Pamela Otten LLC, a Registered Investment Advisor. She loves to work with women business owners and entrepreneurs, and women in transition due to job change, death, or divorce. Pamela will help you set and reach your financial goals, educate you to understand your investments, and teach you how to do more charitable giving. Pamela is a Qualified Kingdom Advisor (www.kingdomadvisors.org), trained and committed to integrating biblical principles with her investment advice.

cc smallest Who Wants to Be a Millionaire?Photo Credit – James Cridland

Financial Planning, Investment Advice, and Investment Management provided through Pamela Otten LLC, Registered Investment Advisor.

The opinions voiced in this material are for general information only, and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, please consult your financial advisor prior to investing.

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