There is common believe that most wealthy people inherited their money, started a hugely successful corporation, or possessed some special skill that allowed them to create something special, play professional sports, played in a famous movie or produce a successful record. But reality says: No!
The vast majority of millionaires do not have exceptional skills. They never received large financial gifts. Nor are they just lucky and hit the jackpot. Most are ordinary individuals who worked hard, saved diligently and compounded their money for a long time.
To generate significant savings to invest, you need to make the right career, lifestyle and spending decisions. Contrary to popular belief, most millionaires are fairly frugal. They’re happy and financially free. They are not dependent on their families, their employers or the government.
They maximized income, minimized spending, saved and invested the difference.
Mainly, they have 7 things in common to build wealth successfully:
1. They live well below their means.
2. They allocate their time, energy and money efficiently, in ways conducive to building wealth.
3. They believe that financial independence is more important than displaying high social status.
4. Their parents did not provide economic outpatient care.
5. Their adult children are economically self-sufficient.
6. They are proficient in targeting market opportunities.
7. They chose the right occupation.
8. Your net worth is primarily dependent on the choices you make.
The start towards financial independence the key is: Live beneath your means!
Sven Franssen