I’m not sure how much a normal person can learn from the Donald Trumps or Bill Gates of this planet. We might envy their lifestyles and the huge amount of money they have, but realistically few of us can achieve what they have achieved.
Becoming a millionaire is something that’s not beyond us. In 2010, the number of households worth $1 million, grew to around 9 million in the USA. Studying the habits of these people can teach us a lot. Most of these people are people like you and me; they don’t just have money; they treat it differently than other people.
Rich people are much more likely to own their own business. Currently about 12% of American families own all or part of a privately held business. Closely held and family owned businesses are a major source of wealth. It’s risky having so much of your life tied up in a single investment that could be tough to sell. The wealthy are also more likely to have mortgages. Mortgage money is a relatively cheap debt at current low rates. Although many wealthier folks own their homes outright, many prefer to put their money in investments that can earn greater returns.
Despite what you may think they don’t blow tons of money on cars. The average millionaire does tend to spend more money on their vehicle but cars represent a much smaller proportion of their net worth. Vehicles represent just 2.4% of the richest households’ net worth.
Most of these rich folks are homeowners, and many of them also own investment property. Home ownership is almost universal among the wealthy. Although the housing market has slumped in recent years, home ownership is still a great investment.
Most of these people make their money from investments such as stocks and bonds, managed accounts, IRAs, mutual funds and alternative investments
Theses lessons here certainly are not revolutionary, but they’re worth learning. Don’t be a miser, learn to take strategic, diverse risks and live within your means. Chances are you will not make the Forbes rich list, but you can create a richer life for yourself and your family.