We see rich people every day, driving good cars and living enviable lives. They have gathered savings over the years and find themselves in positions to quit their jobs and live off their savings. These rich people have most or all these things in common:
1. Job Stability: It is popular belief that a lot of millionaires were either handed trust funds or were lucky enough to win a lottery. However, there are other ways people become millionaires. One of which is staying with one employer for a very long time. Staying with the same company for many years can attract many significant benefits, including a very nice ending salary, lifetime financial benefits and significant pension benefits. While it seems rare to think about working for the same company for twenty years or longer, there are still a number of people who do it.
2. Regular Savers: Most retired millionaires began making big contributions to their pension accounts in their 20s and 30s. Many companies also help in making contributions to their employees’ pension accounts, which cannot be accessed until retirement. In Nigeria, monthly contributions made to your pension account are compulsory if you are a worker in a private or public company.
3. Investors: Millionaires who own stocks usually hold their investments for many years. They continue to re-invest their dividends over time and therefore participate in the long-term growth of the economy. This makes them different from regular savers that only invest in money markets.
4. Don’t Indulge in Luxury Items: Millionaires tend to be more conservative with their spending. They would prefer to buy regular cars, devices and clothes than items that may be regarded as over the top. Very few millionaires own Rolls-Royces, Mercedes, or designer clothes. Some percent of the “rich” still patronize tokunbo cars.
5. Real Estate: Most millionaire people buy homes that are not overly priced or lavish in decently priced areas. They maintain their houses well and sometimes even rent them out when not in use. They would usually pay down their mortgages and ended up with cash-flowing assets.
6. Good Credit: The better your credit score, the lower the interest rates that you pay on your mortgage and car loans. The “rich” achieve this by carrying low debt loads.
7. Tend to Ask for Advice: Millionaires often don’t like to make investments for themselves, except for when it involves an investment they are very knowledgeable at. If their strengths don’t lie in financial planning and investing, they leave it to the experts to do for them.
8. Smart Goal Setting: Rich people don’t become successful by chance. They strategically set their goals and determine the best ways to execute them, by prioritizing. Millionaires have a clear vision of what they want to achieve, which enables them to take the steps necessary to get there.
The secrets to becoming a millionaire are not as strange or as rare as we think. Smart goal setting, long-term financial planning, and disciplined saving can move you closer to being a millionaire.