The Secret to Becoming a Millionaire Isn't What You Think, Ep #15

Chris Hogan with Ramsey solutions recently surveyed and interviewed over 10,000 millionaires—the largest study ever conducted to this date. It was spurred by the research of Thomas Stanley. But the study really digs into what makes millionaires different. How do they become millionaires? What are their habits? How do they spend—or not spend—their money?  Success leaves tracks. If you can figure out how someone else does it and follow in their footsteps, there's no reason why you can't be just as successful. You can replicate success as long as you have the recipe. Listen to this episode of Retirement Made Easy to learn some of the simple habits you can adopt to reach millionaire status.  You will want to hear this episode if you are interested in... [3:28] The success habits of millionaires [4:51] The primary residence of millionaires [6:24] Important wealth-building tools [7:45] How many millionaires inherited their wealth? [9:21] The education level of millionaires [10:04] Other fascinating statistics about millionaires [11:58] Wealth-building vehicles responsible for net worth [16:46] Get a good retirement plan in place Millionaires care about debt According to the survey, the average home size of a millionaire was only 2,600 square feet. Only 4% of millionaires had homes that were 5,000 square feet or bigger. The average millionaire also paid off their house in 11 years. Only 30% had a mortgage balance at all. Only 6% had any type of credit card balance versus 40% of Americans and only 18% of millionaires had a car loan versus 35% of the general population.  Millionaires do not believe in carrying debt—they're looking to build wealth. Debt is not a wealth-building tool. What contributes to their million-dollar net-worth portfolio? Listen to hear some of the top reasons (hint: inheritances are NOT the #1 reason).  Millionaires and inheritances I had a friend that would point out someone that he knew was a millionaire and would quickly say "Oh, but they inherited all of their wealth." But inheritances aren't the #1 contributing factor to most millionaire's wealth. Inheritances ranked 7th on the list of contributing factors. 79% of millionaires had received no inheritance at all. Only 3% inherited $1 million or more. That's a very small percentage! What was one of the higher contributing factors? Education level. 87% of millionaires had at least a 4-year college degree or higher. 13% had a PH.D. The studied millionaires were well-educated—but their parents were not. 47% didn't have a parent that graduated from college. Only 1-in-4 came from homes where both parents earned a college degree. What are some other fascinating statistics about millionaires? I share a few more, so keep listening.  Building wealth begins with investing and saving 8/10 of the millionaires surveyed invested in an employer-sponsored plan (401k or 402B). They also invest their money outside of employer plans (like a Roth IRA). Lastly, they all saved money outside of a retirement account.  What should you invest in? What do successful people do? Investing in retirement accounts and growth-oriented investments are the biggest keys to building wealth. Millionaires don't buy lottery tickets. Very few inherit their money. Instead, they are disciplined. 48% of millionaires save 16% or more of their income every month. 30% save 20% or more. The biggest contributing factor to retiring wealthy is how much you save and invest. That's why I believe you should construct a retirement or financial plan that incorporates your financial goals. You need to have a vision for your future so you can gauge your course, make adjustments, and reach your destination: retire a millionaire.  Resources & People Mentioned Everyday Millionaires by Chris Hogan The Millionaire Next Door by Thomas Stanley The Millionaire Mind by Thomas Stanley Dave Ramsey Website Connect With Gregg Gonzalez Email at: [email protected] Podcast: https://RetirementMadeEasyPodcast.com Website: https://StLouisFinancialAdvisor.com Follow Gregg on LinkedIn Follow Gregg on Facebook Follow Gregg on YouTube Subscribe to Retirement Made EasyOn Apple Podcasts, Spotify, Google Podcasts