Sarah Stanley Fallaw, co-author of The Next Millionaire Next Door: Enduring Strategies For Building Wealth, has surveyed over 600 American millionaires. Fallaw found that being rich was due more to character traits as opposed to skill in career, age, or even income. The research showed that there are specifically six characteristics that are essential in generating lifelong wealth.
Frugality
Make more, spend less. It’s a simple strategy that often involves trading the erratic pleasures of the present (such as 12 rounds of Jäger Bombs for the whole bar) for a stronger wealth in the future.
Confidence
There can be no half-hearted decision when it comes to personal financial strategy. Decisions need to be made and paid, whether that’s into the housing market, stocks or if you’re especially late to the party, cryptocurrency. Research well and earn your confidence.
Responsibility
Money is power and power is responsibility. This trait balances the former attribute of confidence wherein if you make a bad decision, you need to claim responsibility for your capital loss – not just merely the ‘luck’ of the market.
Planning
Simple. Effective. Obvious. Stick to your pre-planned budget and don’t spend more than you need to.
Focus
Once again, tying in with the last. Set your goals – whether its new avenues of income or wealth generation or actively being frugal with your expenditure – and maintain it day after day.
Social Indifference
Every great innovation, invention, or theory has come about purely due to its ability to buck the trend and explore new territory. Financial risk and gain are the same; if you have done the research and are confident in your ability, narrow in on your goals and don’t let anyone tell you different.
These tips and traits are all self-evident. If you’re strict with your spending and always seeking new avenues of income, you’re well on your way to garnering a considerable level of wealth. If this method of wealth generation comes across a tad boring, check out our three ways to becoming a self-made millionaire.
When in doubt, remember the advice of this financial juggernaut:
