Yahoo Finance How To Get Rich: 8 Self-Made Millionaires Tell You All You Need To Know
More than three-quarters of millionaires did not inherit their wealth. Instead, 79% of millionaires in the U.S. today identify as self-made, according to the Ramsey Solutions National Study of Millionaires. The study showed that five careers produced the most millionaires: engineers, accountants, management, attorneys and teachers.
Try This: 6 Ways To Build Wealth in Less Than Five Years
Learn More: 6 Genius Things All Wealthy People Do With Their Money
While individuals in some of these positions earn high wages, “only 31% averaged $100,000 a year over the course of their career, and one-third never made six figures in any single working year of their career,” the study found.
What tips do self-made millionaires have for others looking to build wealth? GoBankingRates ransacked its archives to find the eight best tips from self-made millionaires.
Sponsored: Owe the IRS $10K or more? Schedule a FREE consultation to see if you qualify for tax relief.
Don’t Try To Time The Stock Market
“[S]tick to a long-term investment plan that aligns with your risk tolerance, goals and timeline, and never stop exploring your options,” said self-made millionaire Thomas Kralow, founder of University Grade Trading Education.
Rather than sell stocks as many people do in a downturn, dollar cost average your way into investments with a proven track record, including consumable goods and healthcare.
Avoid Risky Investments During an Economic Downturn
Brian David Crane, founder of the digital marketing fund Spread Great Ideas, said he avoids certain market sectors, including real estate, crypto, luxury consumer goods and hospitality, during times of economic uncertainty.
A more conservative approach will help protect your portfolio.
Hold the Best Stocks Forever
In his 1998 letter to shareholders, billionaire Warren Buffett famously said about stocks, “Our favorite holding period is forever.”
Self-made millionaires agree. Casey Jones, founder and head of finance at CJ&CO, previously told GOBankingRates he looks to invest in companies with a proven track record and clear vision for the future, like Amazon.
“The company’s stock has experienced significant declines in the past but has managed to recover and continue growing. This resilience is a testament to Amazon’s strong business model and its ability to adapt to changing market conditions,” he said.
Seek Out Dividend Stocks
When you find a stock that’s doing well, reinvest the dividends. Joe Camberato, CEO of National Business Capital, cited Apple as as an example. “In my view, the best is yet to come for Apple. Also, the fact that it pays dividends allows me to reinvest them and buy more shares, and that strengthens my position.”
Invest in Companies You Know and Love
Anna Koval, a self-made millionaire and co-founder of online tarot reading platform Tarotoo, follows another Warren Buffett philosophy — investing in companies she understands and admires.
“For me, that means investing in companies that are aligned with my values, passions and vision for the future,” Koval previously told GOBankingRates, listing EV manufacturer Tesla among her favorites.
Research Before Investing
YouTube personality and finance expert Jaspreet Singh agrees with investing in companies you understand. But you don’t have to be an expert from the start. He recommended using ChatGPT to research companies investing in cutting-edge fields, like AI. “Don’t just blindly throw your money into companies. Do your research,” Singh said.
Surround Yourself With Rich People — and Learn From Them
Self-made millionaire Steve Adcock, who retired in his 30s, recently shared his wisdom in a CNBC article reported by GOBankingRates. “Throughout my career, I worked with many wealthy people,” Adcock wrote. “Instead of being jealous of them, I took notes.”
Read (A Lot)
If you can’t find wealthy people willing to mentor you, look no further than your public library. Steve Davis, CEO of Total Wealth Academy, said the phrase “learners are earners and leaders are readers” has stuck with him.
“If you’re not getting the results you want from your life, you have got to read. Read, read, read, and when you’re done, read some more. Admit you don’t know what you’re doing. Study until you do get what you want,” he previously told GOBankingRates.
Of course, advice from millionaires could (and does) fill thousands of books. Taking action on their tips is your next step toward financial freedom, whatever that might look like to you.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: How To Get Rich: 8 Self-Made Millionaires Tell You All You Need To Know
