Who doesn’t want to be a millionaire? We all aspire to be a financial success and we think that having all that wealth will get us there. It is true that being wealthy goes beyond the accumulation of material possessions. But that does not mean you should not try to improve your financial standing. Money can buy you happiness – up to a certain point. People may say that anything in excess is irrelevant but it does give you a certain level of financial security. That security makes the pursuit of wealth all the more appealing.
But the big question is, how can be become millionaires? We read about various success stories – wondering when lady luck will come knocking on our door. Will we ever become part of the millionaires club?
CNBC.com published a report done by the Credit Suisse that indicates a growth of more than 1.6 million millionaires in this club in 2013. In the US alone, we have 13.2 million millionaires. If they can reach this personal net worth, what is keeping you from joining them?
One thing is for sure, a lot of these people are actually self made millionaires. They were not born into luxury. They worked just as hard as you. Some of them may even have a lower education than you did. So how did they achieve financial success and how can you do the same?
10 qualities that helped a modest millionaire achieve success
Here’s where we hope we can help. There are many things going on in a millionaire’s life that contributed to their current wealth. But there are specific characteristics that got them to where they are now. If you really want to have the same financial standing as these modest millionaires, you may want to try and be like them. As you go along the characteristics listed below, you will realize why we call them modest.
So who is the modest millionaire?
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He knows the ins and outs of financial management. One of the reasons why they are millionaires is because they know financial management. They are wise with their money and they know how to use it properly. They understand that it is not about the income that you earn. It is about how you will manage the money that you get – regardless of how big or small it is.
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He is not afraid of debt. Another reason why they are millionaires is because they are not afraid of debt. That is mostly because of number 1. They know that debt is not the problem. They understand that people who are drowning in debt are those who chose to use it the wrong way. They know how to utilize debt so that it becomes a tool that will help them grow their money – and not take from them through high interest rates. When a millionaire takes in debt, they make sure that whatever it will be used for can earn money to help pay for itself. That is how you should view debt. Remove the fear and learn how you can profit from it.
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He lives below his means. This is one of the explanations why we call them modest millionaires. They are not flashy. These millionaires got to be where they are because they made sure that they spent below their means. It is not enough to spend within the limits of your income. You have to keep it below so that you have extra money to save and/or invest. That is how your grow your wealth.
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He budgets for fun activities. Because they are masters of money management and they know how to utilize it to their advantage, these millionaires have the money to enjoy fun activities. But here’s the catch – they budget their fun activities. This keeps them from overspending. It is important to spend on entertainment activities because it helps motivate you. But make sure that you will keep the spending within your limit.
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He has a plan for everything. A great characteristic of modest millionaires is they are organized. Whether they have luck on their side or not, you need to understand that they are first and foremost, organized. They have a plan for almost everything. They use budget plans, spending plans and even debt payment plans. They rely on these plans for every financial decision that they will make. It helps keep mistakes from happening.
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He dreams big – and does something about it. Millionaires are also dreamers – just like you and me. They have big dreams and they are confident enough to pursue them. They use a combination of their plans and financial management skills to help them achieve these goals.
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He prepares for the worse. Despite being a millionaire, they are not exempt from the economic crash. They felt it just like you and me. But the difference is, they prepared for it. They have an emergency fund intact and they have set up several sources of income. That way, if one income fails, they will not be left with nothing.
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He works to pay for future expenses. This is an important characteristic of modest millionaires. They work hard not to pay for past expenses, but for future ones. What most of us do is use credit to acquire something (car, house, etc) and we end up toiling for it in the future. You need to do it the other way around. Be patient enough to wait until you have saved enough money to pay for whatever purchases you want to make.
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He treats money as a tool. Consumers today think that money is the end all and be all of our lives. That is the consumerist society talking. Keep in mind that money is just a tool. When you realize this, you will be more concerned about how you earn it – not how much you will get. The difference is very important.
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He does not care what you think. Lastly, the modest millionaire does not care what you think. This is why they are not flashy. This is why they live in the same neighborhood as you. This is why they drive old cars. They live a lifestyle that they choose – depending on what they think will make them happy and comfortable. They do not live based on what society expects of them. That liberation is what makes them true financial success.
What is keeping you from becoming a millionaire?
Although the above mentioned characteristics will help you become a millionaire, you need to realize that it still involves hard work. An article in the LATimes.com mentions how misleading certain statistics can be. They revealed how the Federal Reserve will tell consumers that the household wealth is increasing but there are other factors that need to be considered when computing this wealth.
What we are trying to get at is this: do not ride always on statistics. Use your own knowledge and understanding of your personal finances to make it grow. And more importantly, you have to learn how to correct certain habits that will help you utilize your finances well.
If you really want to rise from a low income family to be a financial success, you have to change the following that could be hindering your improvement.
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Refusal to make a change. If you are still not a millionaire after all your hard work, it simply means there is something wrong with your current lifestyle. Identify what it is and make the necessary changes to improve your finances.
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Lack of education. Some people blame their lack of education as the reason why they are still not millionaires. This is wrong. Remember that Steve Jobs did not have a degree. Abraham Lincoln taught himself what he knew. If there is something that you do not know, educate yourself. Be proactive and do not wait for someone to come along and teach you. The Internet has a lot of resources that can help you with self education.
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Fear of debt. Another hindrance is your fear of debt. Remember that it is not the debt that is the problem. If you know how to use it, you can set it up so the investment that you made through that debt can pay for itself.
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No self control. Lastly, you need to learn self control especially when it comes to where you will use your money. If you think that this is your weakness, then use a plan to help guide you.
Remember that being a financial success is not exclusive to those who earned a degree or who has luck on their side. You just have to be really committed, determined, disciplined and persistent. Soon you could be joining the modest millionaire club.