While everyone’s financial situation is unique, during my nearly three decades of preparing financial plans, I’ve noticed that millionaires tend to share similar characteristics.
Although correlation doesn’t prove causation, it may be interesting to review this list to see if cultivating these personality traits in yourself might increase your financial success.
- They spend below their means. Financially successful people differentiate between needs and wants, and realize that accumulating “stuff” is expensive. They regularly review their spending, including philanthropy. Furthermore, they save money in places where it will grow.
- They may not have a budget. While this may sound counterintuitive, it makes sense. That is because millionaires have the self-control to save, and are able to self-monitor their spending. If you make enough money, spend a fraction of it, and have left over, a budget may not be a necessary tool for you.
- They are curious and active learners. Understanding financial issues lets you take more risk. Millionaires don’t only research finances, but they spend a significant portion of their time in self-improvement and personal growth. Successful people are aware of how they spend all their resources, both emotional and intellectual, not just financial.
- They are self-confident. Successful people aren’t afraid to separate themselves from the herd. They often march to their own beat. Millionaires know that wealth-building is a long-term investment; their focus lasts decades.
- They prepare for adversity. Wealthy people have emergency funds and insurance to protect their families in case of unexpected events. They maintain important life documents, wills, powers-of-attorney, advance healthcare directives, etc. Managing risks means being prepared when life turns chaotic.
Successful people have a larger goal for their wealth. They view money as a tool – to provide for their family and others. They aren’t afraid to ask for help from advisors, accountants, lawyers, and financial professionals. Call the office if you need help with your dollar investments (02-624-2788)
Next time you review your finances, consider whether in addition to reviewing your spending, savings, and investments, it may make sense to review your financial personality and work on cultivating characteristics that may make it easier to become a millionaire.
Douglas Goldstein, CFP®, GFP®, is the director of Profile Investment Services, Ltd. www.profile-financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
Published January 20, 2022.