5 Things Millionaires Do With Their Money That the Middle Class Can Learn From
Written by
Nicole Spector
Edited by
Cory Dudak
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Who among us doesn’t want to be a millionaire? Though millionaires are more common than ever (there are some 22 million millionaires in the U.S., according to Zippia), becoming one can be challenging. Making millions on your own requires intense discipline, focus, rigor and possibly even a good dash of luck. But even if we don’t end up millionaires, we can still learn a great deal from how they manage their money to generate and maintain their wealth.
Let’s look at five things millionaires do with their money that the middle class can learn from.
They Invest and Diversify Their Portfolio
It can take a lot of work to start investing in the stock market, mainly because it can feel risky given its tendency to fluctuate dramatically. But investing and diversifying your investments — meaning spreading it around various investment vehicles and market sectors — is something almost every millionaire does and should do, too — even if you’ve only got a hundred bucks to spare.
They’re Aggressive in Tackling Credit Card Debt
Warren Buffett – not just a millionaire but a bona fide multi billionaire — is famously anti credit cards and has gone so far as to tell people to avoid them entirely. But living in our society without any credit cards is not so simple. What is perhaps more feasible than ditching credit cards altogether is to limit the number of credit cards you use. You must also pay off debt aggressively as soon as you accumulate it. This means wiping out your balance in full every month and never taking the “buy now, pay later” route.
They Don’t Spoil Their Grown Kids
Been saving up to buy your adult child a new car? Or donating spare space in your home to them that you could be renting out instead? It’s often difficult to say no to our kids, even when they’re full-fledged grownups. But millionaires are well aware of the importance of being frugal, even when it comes to their loved ones.
They Value Time
So, millionaires value time in a couple of ways: first, they learn how to manage and protect theirs as effectively as possible so that not a minute is squandered or stolen; second, they don’t panic when the stock market, which is likely holding a sizable portion of their precious funds, gets wonky. They ride out the waves and practice extreme patience, knowing that in the end, the stock market will bounce back.
They Have A Long-Term Financial Plan and Work with a Financial Advisor
According to a financial poll from Northwestern Mutual, as reported on by InvestmentNews, more than 8 in 10 people with at least $1 million in assets have a long-term financial plan and 70% work with a financial advisor. It’s crucial to get trusted guidance and to build out and finesse your financial plan with someone formally trained to build out and secure your wealth. It’s tempting to DIY everything — even money stuff — but if you want to learn from millionaires, get a financial expert on your side.
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