Dave Ramsey: 6 Characteristics of a Self-Made Millionaire

We’ve all heard the myths of millionaires. They were born with a silver spoon in their mouths, they went to prestigious schools, and they inherited large sums of money.

But, what if these myths turned out not to be true? What if they worked hard for their money and made smart decisions? As it turns out, that’s exactly what the study

According to the most recent National Study of Millionaires, some pretty surprising characteristics stand out among those who reached this elite status.

But First, What Is the National Study of Millionaires?

If you’ve never heard of this study, you’re not alone. But it’s a great resource I recommend checking out, because even though it’s a few years old, it’s one of the most comprehensive studies ever involving millionaires.

Ramsey Solutions conducted the study, which included more than 10,000 participants, all of whom had achieved millionaire status. The purpose was to glean information about how people amassed their wealth. And the findings blew several myths about the wealthy completely out of the water. It also revealed their common habits.

1. They Consistently Invested Over Long Periods

It’s been said time and again, but investing is a long game. It’s not something you can get rich quick on, though some have certainly tried. In the study, 75% of participants said that consistently investing over long periods of time was the key to their success.

Does that mean you can’t get rich overnight? No. But it’s definitely not the norm and something you should count on.

2. They Invested in Their Company’s 401(K)

Retirement funds are an excellent way to put your money to work. In fact, 80% of the participants invested in their company’s 401(k). They did it regularly and consistently, but also diversified their options.

If you have access to your company’s 401(k) and even better, if your company price matches to a certain point, you should be maxing that out each year. The longer and the more you contribute, the more you’ll have when it’s time to clock out for the last time.

3. Most Millionaires Weren’t Born That Way

There’s a myth that all millionaires were born with a silver spoon in their mouth. In other words, their parents or grandparents left them a large trust fund. This is actually far from the truth. There are trust fund millionaires out there, absolutely, but most were not born that way.

The study’s findings revealed that a whopping 79% of millionaires were self-made. In fact, out of the 21% that did receive some form of inheritance, only 3% of them received $1 million or more.

4. They Are Savvy When They Shop

This might seem weird, but the rich shop savvy, too. It’s not all luxury boutiques and the finest caviar from far-off countries. In order to reach millionaire status, you have to be conservative with your spending.

That means living below your means, which 94% of those in the study admitted to, eating out infrequently, and using coupons, which 93% said they did. They also use written lists when they hit the grocery store, though only 28% admitted to sticking to it every time.

5. They Didn’t Attend Elite Schools

Harvard, Yale, Dartmouth, and Princeton come to mind when you think of elite schools. Yet, the majority of the millionaires surveyed, 62%, went to state universities and only 8% attended prestigious institutions.

The majority of those surveyed did, however, get a college degree. But this just proves that you don’t have to go to an Ivy League school to achieve millionaire status.

6. They Don’t Always Have High Salaries

Obviously, if you’re a millionaire, you have an enormous salary, right? Wrong. In fact, many don’t even make six figures per year. Yet, a combination of being thrifty and living below their means, coupled with investing, all led them to that outcome.

Most of these millionaires have worked normal jobs with normal salaries, they just adjusted their lifestyles.

What Are the Top Five Careers of Millionaires?

According to the study, five jobs stood out as the most common among those who achieved millionaire status. And, they might actually surprise you. So next time you think you need an elite job, just remember many reached that status by working as a:

• Teacher
• Engineer
• Accountant
• Attorney
• Manager (various fields)