TRAITS OF U.S. MILLIONAIRES

Did you know- Millionaires, make up roughly 7% of American households?

US Millionaire Traits
• Sixty-seven percent own their own businesses. Not terribly exciting businesses: Welders, Lawn Care, Pest Control, Painters, Electricians, Plumbers, Owners of rental properties-commercial and residential, etc
• Eighty percent have a college degree, but often own businesses with little relationship to their formal education.
• Ninety-seven percent own their own home
• They are FRUGAL and live well below their means. They tend to not spend their money on expensive: cars, jewelry, clothing
• They believe in the importance of education, especially for their children.  They start saving early for their children’s education cost.  And advise their children to go into fields they can get a job!
• Tend to work 45 or more hours per week
• Invest 20% or more of their annual household income
• Often have multiple streams of income. Example: Rental income, owners of small businesses with cash flow, etc.

 

A typical millionaire looks like you. You pass them in the street. Eat at the same restaurants and fast food chains. They’re your neighbors and the people you see in grocery stores, etc.  They work hard, save their money, invest and have a large, rainy day fund.

 

For those of you who are not a millionaire, here are some lessons:
1. Develop a budget and identify money you can save.  For example, if you are spending $7/day for lunch, that adds up to $1,750/year.  Not that much?  Suppose you bag your lunch and invest $3.50/day, in an S&P 500 index ETF, for  20 years.  Assuming an average of 8% return, you will have ~$41,000, at the end of 20 years.   Here is your challenge-how many more dollars can you find to save, so in 20 years, you have that million dollars.  Remember-Millionaires, spend less than they make!!

2. Save part of your income.  Learn where and how millionaires invest their money. {ETF’s, Mutual Funds, Bonds, CD’s, Stocks, Real Estate, their own businesses, etc.}

3. If you work for a company that has a matching 401 plan, invest the percentage required to get the matching funds.  Example-If your company matches 4%, contribute 4% (MINIMUM).  And keep increasing your percentage annually, until you reach the max.

4. Learn about retirement savings vehicles, such as IRA accounts, ROTH IRA accounts, Simplified Employee Pension (SEP, allow you to contribute as much as 25% of your net earnings from self-employment

5. Attempt to have little debt, with possible exceptions of your home and student loans.  But especially no credit card debt.  If you currently have credit card debt, work as quickly as possible to pay these off

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DISCLAIMER

I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger, with a NC State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.  

I started my first business at ~13 years of age. I am a successful investor in equities and real estate and happy to share my personal finance and investment lessons learned with you. However, I am NOT a licensed financial advisor.  Please do not construe my suggestions on this blog, as recommendations for your personal situation.  For individual finance advice please seek your own licensed CPA or financial advisors.  

Powers Investments Management, LLC

This blog will provide, information and simple strategies, that will assist you to achieve YOUR financial objectives and long term targets. For over 30 years, I solved multi-million dollar problems, for Fortune 10-250, companies. My formal education includes: Business, Finance and Chemical Engineering {Problem Solving} at: Harvard, Rutgers and North Carolina State. And an additional 30+ years, managing my family’s investment decisions. I currently manage/advise people with net-worths ranging from the tens of thousands to several million dollars.

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