CNBC recently published an interesting article by a writer who interviewed 225 millionaires to evaluate their habits and analyze common themes. He found that the interview subjects all fell into one of four categories: “saver-investors,” “company climbers” who work for a company, climb the corporate ladder, and ultimately secure a senior-level position, “virtuosos” who are very good at what they do and are paid accordingly, and “dreamers” who follow their passion and do things like form their own businesses or write books.
The most common habit people in the four groups shared–besides working at something, which obviously is the basic foundation for each of the groups–was the habit of saving money. 88 percent of the millionaires interviewed said saving was a key part of their financial success. And the savings process itself involved three common themes: automatic saving of a significant part of income, investment of their savings, and frugal lifestyles. Reaching millionaire status using these techniques can be a slow process–it took the millionaires who were interviewed between 12 and 32 years to accumulate their nest eggs of between $3 million and $7 million–but the process worked.
There are a lot more millionaires now than there were during the era of Thurston Howell III and Lovey, the “millionaire and his wife” on Gilligan’s Island. It is estimated that 20 million Americans have reached millionaire status, producing 13.1 million households–more than 10 percent of the total number of households in the U.S.–that have assets of at least $1 million. About 20 percent of the millionaires inherited their wealth, but the rest made their money, in whole or in significant part, through their own effort and hard work.
Not everyone wants to become a millionaire, of course–but if you do, the statistics show that it is a reachable goal that can be achieved with work, a long-term focus on saving and asset growth, prudence, and the good luck to avoid serious illness or unprovoked job loss.
and most of us lack the discipline to do so, myself included. )
Discipline is a good way to describe it! It’s a tough path to stick to, particularly at first.
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