Millionaires are made not born

Debt Free Team
Nov 1, 2021
3 min read

Updated: Mar 3, 2022

A recent National Study of Millionaires by Ramsey Solutions cites how most millionaires amassed their fortunes. Keep reading; you will be surprised how they hit the million-dollar mark. They did it through consistent investing, avoiding debt and wise spending. No lottery tickets. No inheritances. No six-figure incomes. That’s great news for Americans who’ve lost hope that they can ever build real wealth.

According to the survey, eight out of 10 of millionaires invested in their company’s 401(k) plan, and that simple step was a key to their financial success. Not only that, but three out of four of those surveyed invested outside of company plans. In fact, they worked, saved and invested for an average of 28 years before hitting the million-dollar mark, and most of them reached that milestone at age 49. Three out of four millionaires (75%) said that regular, consistent investing over a long period of time is the reason for their success. So, the story about the young computer genius who developed an app that earned millions overnight is the exception, not the rule.

8 OUT OF 10 MILLIONAIRES INVESTED IN THEIR COMPANY’S 401(K). The participants in the study became millionaires by consistently saving over time.

According to the book, Everyday Millionaires by Chris Hogan, the top 5 traits of millionaires are:

1. They’re avid readers.

President Harry Truman once said, "Not all readers are leaders, but all leaders are readers." One of the reasons millionaires become millionaires is because of their constant desire to learn. To them, leadership books and biographies are much more important than the latest reality show or who got kicked off the island. When they have free time, they use it wisely—by reading.

2. They understand delayed gratification.

Everyday millionaires spend most of their lives sacrificing temporary pleasures for long-term success. They have no problem buying an older used car, living in a modest neighborhood and wearing inexpensive clothes. They don’t care about keeping up with the Joneses.

"Everyday millionaires spend most of their lives sacrificing temporary pleasures for long-term success." —Chris Hogan

These decisions allow them to do things like save for retirement and college, and build up a large down payment for their dream home. They realize that instant gratification is fun—but delayed gratification is so much better. Today’s sacrifices set them up for tomorrow’s success.

3. They stay away from debt.

One of the biggest myths out there is that average millionaires see "debt as a tool." Not true. If they want something they can’t afford, they save and pay cash for it later. Car payments, student loans, same-as-cash financing plans—these just aren’t part of their vocabulary. That’s why they win with money. They don’t owe anything to the bank, so every dollar they earn stays with them to spend, save and give! Debt is the biggest obstacle to building wealth. You need to avoid it like the plague. Your dreams are too important!

4. They budget.

Your budget is your plan. And you can’t build a million-dollar net worth without a plan, people. Success isn’t an accident. You are in charge of your own wealth-building.

"You can’t build a million-dollar net worth without a plan." —Chris Hogan

Just like you build a house by starting with the foundation, you build wealth by starting with the budgeting basics. And then you keep following them. When you’re making a lot of money, you don’t stop managing it, right?

Average millionaires have made a habit of budgeting every month. They know what’s coming in and what’s leaving their bank accounts. If you only remember one thing, it should be this: Budgeting is the key to winning with money. It’s telling each dollar where to go at the beginning of the month instead of wondering where it all went.

5. They give.

The everyday millionaires who live down the street, the ones you don’t even realize are wealthy, are some of the most giving people you’ll ever meet.

Whether it’s tithing at church, donating to a charity or just giving to friends and family, these people have generous spirits. They realize that the most important thing you can do with wealth is help others.

You too can do the work to eliminate debt, start on the path to consistently saving and be a giver. We are here to help.