Wealthy people in America have earned their status by overcoming hardships and working hard. Of the people who have more than $3 million in assets, 70% come from middle class or low-income backgrounds. The American dream is alive and well.
Each year, US Trust surveys America’s wealthy people to understand their insights and how they came about being wealthy.
The truth is not that they are smarter than others, but it is a core built on basic values, a sense of what they can be, along with discipline that made them a financial success.
Following are traits that people who built their success and haven’t inherited share.
1. They are Indifferent to Extravagance
Most people who are self-made tend to be less inclined about “status.” Their homes are comfortable, but not excessively large or expensive. They wear clothes that are in style but not from “designer” or trendy labels. They shop at Costco and favor the Costco brand Kirkland. In other words, though they have money, they live an ordinary middle-class life.
2. They Set Realistic Goals
Instead of thinking “I want to be rich,” they think of goals that are specific and realistic. They might say to themselves “I will try my hardest to earn another $25,000 by being more productive in my career.”
3. They Are Meticulous
People who built themselves up financially use their time, energy, and money in an efficient manner that helps build wealth. Things they do include budgeting, planning, and goal setting as mentioned above.
In fact, research shows that prodigious accumulators of wealth (PAWs) spend about twice the amount of time performing these activities than high-earners who have no real accumulated wealth.
4. They Are Always Motivated
Another trait common to people who amass wealth is that the clock doesn’t stop for them at 5 pm or on weekends. They work hard and then work hard doing the activities enumerated in No. 2 above.
5. They Ask For Help
People who create personal wealth for themselves understand that others may have more expertise than he or she does. Accordingly, they tend to listen and accept advice from trusted advisors.
6. They Stay In Shape
People who want to amass wealth tend to be involved in keeping fit and staying well.
7. They Take Risks
People who earn their wealth and join the company of multimillionaires are willing to take risks. But, they invest for the long-term and choose investments without betting everything on one tip or hunch. These folks, as investors, keep onto things they invest in for as long as the investment is sensible to them.
8. They Use Credit to Build Their Wealth
Two out of 3 use credit for investments in things such as buildings and real estate.
9. They Stay On Top of Taxes
Rather than having to borrow to pay taxes, wealthy individuals stay liquid enough to pay taxes (and keep an emergency fund). They also plan for their heirs keeping the tax collector uppermost in their thoughts.
10. They Learned from Their Parents
Almost 80% of those we were firmly middle-class while growing up said that the following values learned during childhood formed their success. They noted the following 5 values as invaluable to their financial success, which include academic achievement, financial discipline, work participation, family loyalty, and civic duty.
11. They Look for New Sources of Income
These newly wealthy people always seek to add value from their activities. Whether providing service or products, investing in a stock, or working on a community project the addition of value to the base is at their core.
12. They Follow Their Passion
People who build wealth and become a high-net-worth individual almost always express happiness with their job, this motivates them to be the best they can at work.
If you are not an entrepreneur or a business owner, you still have ample opportunity to amass wealth. You need a career that does more than pay the bills and you will have to live below your means so you can build up wealth.
Following these 12 traits of newly wealthy people is a solid foundation for building your own wealth. Sure, some of the traits are instilled during childhood but, know that you know what they are, you can do the same even if you grew up in the system. Persevere, and you might become a millionaire in your own right!
Regards,
Ethan Warrick
Editor
Wealth Authority
