Yahoo Finance 10 Simple Habits of the Average Millionaire, According to Dave Ramsey
Millionaires can be a mystifying bunch. Middle-class and lower-income earners are often curious about them, asking: How did they make their money? How do they manage it? How can we learn from them in order to build our own wealth and power?
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Generally, millionaires aren’t as complicated as you may think, at least, not when it comes to how they go about their days and carry out their values. In a recent blog post on Ramsey Solutions, financial guru Dave Ramsey delved into the “simple” habits of millionaires, highlighting that it’s a financially savvy idea to adopt them if we’re looking to make millions ourselves.
Wealthy people know the best money secrets. Learn how to copy them.
They Spend Their Free Time Reading Instead of Scrolling
Knowledge is power. It’s also, potentially, wealth. To stay sharp and grow their wisdom, millionaires read…a lot.
“One of the reasons millionaires become millionaires is because of their constant desire to learn,” Ramsey wrote. “To them, leadership books and biographies are much more important than the latest reality show or TikTok trend. When they have free time, they use it wisely — by reading.”
They Understand the Concept of Delayed Gratification
Any millionaire worth their salt (and capable of growing their net worth), is thinking carefully about their future. They’re more focused on working toward a glorious retirement than they are interested in spending money on things that don’t really matter in the long run.
“Millionaires spend most of their lives sacrificing temporary pleasures for long-term success,” Ramsey wrote. “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.”
By focusing on big life goals instead of material status symbols, millionaires are able to save better and with bigger payoffs.
Learn More: I’m a Financial Advisor: Here’s Why My Rich Clients Identify With the Middle Class
They Spend Time With the Right People
You know what they say, “friends are your chosen family.” Millionaires embrace this wisdom and are highly selective of who they keep in their close circles, favoring those with similar values and dedication.
“If you hang out with a group of like-minded people who are committed to the same basic personal, relational and financial goals you are, then you’re all headed in the same direction,” Ramsey said. “And you’re more likely to find encouragement, trust and accountability in a group of friends who align with your values and goals.”
They Avoid Debt
Ramsey believes that one of “the biggest myths out there is that average millionaires see debt as a tool.”
He shoots this concept down.
“Not true. If they want something they can’t afford, they save and pay cash for it later.”
They Budget
Just like you and me, millionaires must adhere to a smart budget, and update it often.
“Average millionaires have made a habit of budgeting every month,” Ramsey wrote. “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.”
They Live Below Their Means
Sure, you’ll find plenty of uber-wealthy people out there who flaunt their riches via luxury cars, Rolex watches and sprawling mansions. But the everyday millionaire doesn’t do this; in fact, they live below their means.
“A huge part of building wealth is limiting your lifestyle so you actually have money to invest and save for a rainy day,” Ramsey wrote. “Nearly half of the millionaires we questioned in The National Study of Millionaires said they save at least 16% of their monthly income, whether for an emergency fund or just to keep a little liquid cash set aside.”
They Don’t Buy Luxury Cars, and Drive the Same Car for a Long Time
A good car can last you over 200,000 miles. Millionaires understand this and so they favor reliable cars that they can safely and comfortably drive for years and years.
“We studied 10,000 U.S. millionaires and found that most of them avoided driving expensive luxury brands,” Ramsey wrote. “Instead, nearly one-third of all millionaires (31%) drove Toyotas and Hondas. The top American brand was Ford, placing third on the list and tying with Lexus (the first luxury model listed) at only 8%.”
They Invest In Their Employer-Sponsored Retirement Plan
Look, if your employer offers sponsored retirement plans, you simply must invest in them. This is one of the best ways to help secure a nest egg for your golden years. And it’s what most millionaires do.
“In The National Study of Millionaires, we found that 8 out of 10 millionaires listed investing in their employer-sponsored plan as a primary vehicle for reaching millionaire status,” Ramsey wrote. “And 3 out of 4 millionaires said that regular, consistent investing over a long period of time is the reason they built wealth.”
They’re On the Lookout for Ways To Make More Money
Millionaires are, in the opinion of Ramsey, hustlers. They don’t sit still with their wealth. They’re always looking out for new ways to earn.
“They have that entrepreneurial drive and are constantly on the lookout for ways to create more income,” Ramsey wrote. “Many are business owners or take on side gigs that allow them to save or invest more money each month.”
They’re Charitable
Part of being a successful millionaire is being a generous one.
“They realize that the most important thing you can do with wealth is help others,” Ramsey wrote. “That’s actually why they continue building their wealth. They realize they can’t take it with them when they die. Instead of spending it all on the latest toys, they choose to be a blessing to others by giving generously.”
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