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4 Qualities Of People Who Retire Rich

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4 Qualities Of People Who Retire Rich

Could your next-door neighbor be a millionaire?

It's entirely possible. Millionaires are more common than you may think. In fact, it's estimated around 11 million households in the U.S. in which the occupants have a net worth of at least a million dollars.

While you can certainly achieve fabulous wealth by becoming an actress in Hollywood or an NFL star, everyday millionaires build their wealth more slowly and often live below the radar. These folks build their wealth over years or even decades, and you'd often never know to look at them that they are rich.

In his book, "Everyday Millionaires," Chris Hogan shares that when they surveyed more than 10 million U.S. millionaires, he learned most of them did not become millionaires by accident or overnight. Instead, he found that most of the people who are out there achieving financial independence did so with a specific plan in mind.

Here are some of the qualities that many millionaires display that help them to cross the finish line to retirement with considerable wealth in their lives.

Humility: They Live Beneath Their Means

It's all too easy to spend every pay increase on the latest gadget or designer clothes. It's also easy to convince ourselves that we need to look our best to be successful or that we deserve that expensive bottle of wine at dinner with our friends.

Keeping up with the Jones' is expensive.

Everyday millionaires, on the other hand, often practice humility. They think of themselves less often than they think of others and they aren't concerned with their "status." They also believe that they can learn a lot from everyone around them. Many would consider themselves lifelong learners who literally thrive on knowledge.

This serves them well when it comes to money.

With such a mindset, it's not too challenging to live beneath their means instead of spending every penny they earn. Humble individuals don't care if they drive an 8-year old vehicle as long as the ride is dependable. They think twice about expensive purchases, and they aren't afraid to pass on something that's out of their budget.

Warren Buffett, one of the richest men in the world, lives in an ordinary home in Nebraska that he purchased in 1958; not a mansion. You get my point.

Discipline: They Invest Early And Regularly

Albert Einstein once said that compound interest is the eighth wonder of the world. That's because you can amass a staggering amount of wealth by simply starting to save early on.

It may feel like saving $50/month or $100/month in your 20s isn't much money or wouldn't make a difference. Yet simple math tells us that people who are disciplined enough to save early will have to put away far less money later on when it comes to reaching a million dollars in the bank.

Yet if you really think about it, it's harder to save money when you have less money to begin with. Our early years are typically the years just after high school or college when we earn less than we will probably will in the future.

Eventual millionaires have the focus and determination to set aside a set amount of money every month even in the years when their income isn't blowing anyone's mind. In doing so, they take advantage of compound interest that benefits them greatly in the end.

Efficiency: They Have A Plan And They Stick To It

Inefficiency is the enemy of wealth. Everyone has heard the story of successful people who lost everything because they never kept an eye on their money or knew how much they were spending.

Millionaires, on the other hand, are not the type of people who just cross their fingers, say a prayer, and hope for the best. Instead, they are planners who will evaluate the cost-effectiveness of nearly every life decision. They set goals and then implement the steps necessary to reach those goals.

Courage: They Take Calculated Risks

Many millionaires achieve their wealth by starting their own businesses, which can be something that is both risky and scary. There is always a risk of failure but understanding that is part of their success.

Becoming an entrepreneur just takes a level of fearlessness that not everyone can claim to have. Yet self-made millionaires don't dwell usually dwell on their fear or let it stop them. Instead, they look for good opportunities and when they find one, they do their due diligence and research their business ideas well before leaping into the fray.

Cultivate these traits yourself and you'll soon be on your way to retiring rich.

Posted-In: Education General Best of Benzinga

 

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