Most of the millionaires in the world are not celebrities living in huge estates. In fact, you could be living next to a millionaire and not even know it!
As it turns out, there are some traits which millionaires share and it’s not just what they have in their bank account. In this quick post we shall look at the traits that millionaires have in common – and yes it’s all backed by research.
1. Millionaires Dream Big and have a Strong Work Ethic
Millionaires tend to see the possibilities beyond just the immediate future. They look to scale. For them, obstacles and setbacks are just potential learning experiences.
They have big dreams and believe that they will come true – even it if means they have to head into uncharted territory. With that in focus, achieving those dreams can take some hard work and very strong ethic.
For example, look at Steve Jobs. Just a year after the Mac’s introduction, he was fired from Apple. In his keynote speech at Stanford University in 2005, he said:
“I didn’t see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me.”
And what did he do after getting sacked? Jobs started two businesses: Next and Pixar. After that he went back to Apple, grew it to a billion dollar business that we see it as today.
Here is an interesting fact: when the authors of Mind in Context: Interactionist perspectives on Human Intelligence researched what millionaires learned in college, 94% replied: “a strong work ethic.”
They also asked a group of millionaires what their teachers said their strongest asset was and the majority of them said: “being dependable.”
2. Millionaires are Self-Employed Entrepreneurs
Think it’s risky to start something on your own? Millionaires think the opposite. They think it’s risky to work for someone else. There is a certain hustle, drive and itch these entrepreneurs just have to scratch. They cannot work for someone else – not because they don’t want to. But, because they always need something to do on their own.
Sounds familiar? The fact that you’re reading this means you’re headed in the right direction.
The Millionaire Next Door has these interesting facts about millionaires and self-employment:
- 20% of the affluent households in US are headed by retirees.
- Out of the remaining 70%, more than 2/3 is headed by self-employed owners of a business.
Can you think of someone who started a full time business on their own that actually began as a side project?
3. Millionaires Have a High Tolerance of Risk and Failure
Failure is a constant feedback loop. Every time you fail, you’ll learn something.
To be a market leader in any business, you have to be willing to take big risks that might fail. You have to be able to get back up after getting knocked down.
Frank McKinney, a maverick real-estate investor says that you need to exercise risk like any other muscle:
“If you exercise that muscle and you take a calculated risk and then see whether it pays off and then take another calculated risk and see whether it pays off, you start to trust your judgement better and your analysis of what you’re doing.”
4. They are Self-Disciplined and Delay Gratification
Self-discipline is an extremely important and common trait among millionaires and successful entrepreneurs. Thomas J Stanley, author of The Millionaire Mind interviewed some of the top 1% wealth holders in US; he found that they agreed that being self-disciplined was vital in their financial success.
“A disciplined person sets his or her sights on a lofty target, then figures out productive ways to reach the target. Disciplined people are not easily sidetracked. They could live in a French bakery and not gain weight or they could encounter hundreds of economic opportunities and then select one or two that are best suited to their strengths and the market’s needs.”
By being self-disciplined, millionaires are able to delay gratification in the short term – they’re able to keep their long-term goals of becoming financially independent and successful.
5. They Do Not Spend Frivolously
The majority of millionaires today aren’t popping thousand dollars on buying luxury cars or multimillion dollar homes. In fact, these people find great value in managing their money and planning for a successful, financially independent future.
The authors of The Millionaire Mind researched further into the lifestyle and habits of millionaires what they found was surprising:
- 50% of millionaires haven’t paid more than $399 for a suit.
- More than half of the millionaires surveyed had never paid more than $30,000 for a car.
Now that we have taken a look at some of the things millionaires have in common, it is up to you to take action and start planning to make your first million. So what’s your first step going to be?