- Tom Corley interviewed 225 millionaires. He divided them into four types
- Regardless of the category, the vast majority of them share one feature
- Influenced by the conversations, the author developed a short list of habits that characterize successful people
- More important information can be found on the Onet homepage
Tom Corley is an American accountant, financial advisor, and author of books on finance such as “How the Rich Do It, 30 Priceless Habits” and “Rich Children. A Guide for Smart Parents.”
Types of millionaires
According to Tom Corley, rich people fall into four types:
- Saver investor. No matter where and in what position they work, saving and investing is part of their daily routine. They are still considering clever ways to increase their wealth.
- Company climber. They work for a big one companies. They spend their time and energy climbing the ladder of the corporate hierarchy. They keep doing this until they end up in a senior management position – with a really high salary.
- Virtuosos. They are the best at what they do and receive a high bonus for their knowledge and experience. They usually have high, specialized education, scientific degrees (e.g. in law or medicine).
- Dreamers. They strive to fulfill their dreams of creating their own company, becoming a famous actor, artist or author of books. Dreamers love what they do and their passion is reflected in their account balance.
According to Corley, the least risky path is the first – saving and investing. At least compared to dreams of creating a thriving company or a great artistic career. 88 percent The millionaires he spoke with said long-term saving was key to their success.
The study found that it took the average millionaire between 12 and 32 years to accumulate net worth of $ 3 million to $ 7 million.
Habits of millionaires
Influenced by these conversations, Corley identified three of the most important habits that helped millionaires become millionaires.
Habit one: automation in saving
Each saving investor put aside 20 percent or more of his salary in his statement every month. Typically 10 percent. went to a retirement account, another 10 percent. landed on a savings account. Once a month, however, 10 percent. they spent their monthly savings on an investment account, e.g. with a stock broker.
“Even if saving 20% of your salary seems too modest to you, the most important thing is that you do it at all. Consistently saving even a smaller percentage will help you achieve your financial goal in the future,” Corley suggests.
Habit two: invest some of your savings
Because saving investors consistently invest some of their savings, their wealth grows over time. When they started out, the interest was not high. But after ten years, they were starting to accumulate considerable sums. Towards the end of working life, the wealth of investor savers increased by an average of $ 3.3 million.
The dreamers did not have the opportunity to invest their savings, especially in the early stages of making their dreams come true. Everything they collected, they invested in working capital to finance their dream.
Interestingly, most successful dreamers started investing their earnings quickly.
Habit three: extreme economy
The common denominator connecting the representatives of all three groups was remarkable economy. And that’s from the first payday.
According to Corley, being thrifty requires three things:
- Consciousness. Knowing how you spend your money is crucial
- Focus on quality. If you already spend – buy high-quality products and services
- Take advantage of the occasion. Spend the lowest possible price when you buy the same product
“Saving alone will not make you rich. It’s just a piece of the puzzle. But it will allow you to accumulate capital that you can spend on investing,” concludes Tom Corley.
Author: Adam Kosieradzki
Source: CNBC Make It