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How the self-made millionaires did it

Tags Financial Planning
Category Business

How millionaires are managing their money

Despite the general consensus against greediness, money certainly makes life easier. It’s only natural that when we see self-made millionaires (and the bank accounts that accompany the status), we yearn to be one as well.

What’s the secret behind being a self-made millionaire? While there’s no tried and tested method, there are quite a few common traits. The most important, however, is being financially disciplined. After all, a household wealth survey released by the Australian Bureau of Statistics pointed out that more than a million Australian households boast a net value exceeding $1 million and those millionaires got there all on their own.

Are you millionaire material?

Visionary

All self-made millionaires have visions. They know what they want and they go after it, making dreams a reality. Being committed to a savings plan is one thing what you choose to do with your money is another. Millionaires don’t have an “earn and spend” mentality. Instead, they see the value of their dollars, opting to save and invest.

Hard work

The saying “you don’t get something from nothing” rings true. Making money is hard work, though anyone can make it if they stay focused. Facebook founder and billionaire Mark Zuckerberg wasn’t born with a silver spoon is his mouth, but he is now worth $14.7 billion thanks to launching the social networking site from a Harvard dorm room.

Determination

Self-made millionaires are able to persevere with their goals, even when others tell them it’s not possible. They’re focused and many live well below the life they can afford to ensure their bank balances continue to grow. You may be surprised to know modern millionaires live in middle-class suburbs, shop frugally and go to work every day.

Staying in

Many self-made millionaires would have stayed in on the weekends instead of socialising with friends. This doesn’t necessarily mean you should avoid any entertainment, but staying in and working on business and investment plans can pay off. And you’ll be saving from not having to spend!

Money-smart

Being money-savvy tends to be essential for self-made millionaires. Just look at Ingvar Kamprad, who is worth a whopping $36 billion today. At just 17, he used the cash his father had rewarded him with for excelling at studies to create IKEA. At a young age, this budding entrepreneur learnt that it’s possible to make a profit from selling bulk goods at a low price. The same can be applied to savings put a little away each week and watch your savings grow quickly.

Fast learners

Self-made millionaires don’t tend to view their mistakes as failures, but rather as opportunities to learn from and improve. American business mogul Donald Trump, for instance, lost everything in the 1989 recession. While he declared himself bankrupt, he quickly got back into the money. Today, his estimated net worth sits at $2.9 billion.

Embrace risks

Taking risks when necessary can generate profitable lump sums to significantly boost the bank account. Millionaires do this, as they can afford to take more risks if their funds are fine sitting in an investment for a longer period of time, since they don’t need to access them. If this isn’t feasible, you can always park your savings into an account that reaps the snowball effect of compound interest.

Term deposits and high interest online savings accounts are ideal products that can help you raise the capital needed to fund a bright idea. There are plenty of financial products available that can make achieving your savings goals a reality.