I'm a Financial Planner: 5 Habits I See in Everyday Millionaires
If you want to be a millionaire to show off to your friends and neighbors, you may have a tough road ahead. Per Taylor Kovar, certified financial planner (CFP) and co-founder of UseKlear.com, said the everyday millionaires who struggle are often the ones trying to keep pace with a neighbor’s lifestyle.
“The ones building wealth tend to stay focused on their own plan,” he added. “There’s really no secret formula. It's mostly just consistency, which tends to be a lot less exciting than people want it to be.”
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While there may not be a secret to uncover, read on to see what a financial planner told MoneyLion are three key habits seen in successful everyday millionaires (along with two others to consider from more experts).
1. Focus on the Long Game
“It's about the long game,” said Brandon Gregg, CFP and advisor with BBK Wealth Management. “Many people who've built their wealth don't have the mindset we see nowadays of ‘I want that, and I want it now.’”
Gregg added that they understand that building wealth takes time and sacrifice and they are willing to be patient. They tolerate delayed gratification, and they hone their priorities until they are accomplished.
2. Keep a Consistent Lifestyle
According to Gregg, in many cases, as wealth increases, everyday millionaires keep their lifestyles the same.
“I won't say that spending doesn't increase as income rises, but I see many people use income increases to their advantage,” he added. “They keep their lifestyle similar and use the extra cash flow to increase savings and investments. It's a difficult task but a solid way to build wealth.”
3. Tap into the Power of Ownership
Gregg made it clear: Ownership is important.
“This can be looked at in two ways,” he noted. “Ownership can mean that all assets are paid off. After all, cash flow going to debt isn't helping the nest egg to grow. The other way is owning businesses, stock and real estate. They see the power of compounding and build wealth through these avenues.”
4. They Show Up and Keep Learning
Melanie Musson, a finance expert with Quote.com, pointed to a couple of other habits she sees in everyday millionaires.
“It sounds simple, but they show up,” she said. “They reached job security and a good income by showing up, being reliable and learning new skills.”
5. They Take Chances
Musson added that everyday millionaires take chances.
“Whether it’s starting their own business, purchasing income property or taking a new job outside their comfort zone, they’re ready to take a risk on themselves, trusting that they’ll come out ahead," she concluded.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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