What does it take to get rich? To find the answer, it makes sense to go to the source — millionaires themselves.
Ameriprise surveyed 580 Americans ages 27-77 who have at least $1 million in investable assets and asked them how they became wealthy.
Here are the answers they gave, from least to most common.
Survey participants who said this is the top driver of their ability to accumulate $1 million: 13%
Getting rich takes hard work. It also usually requires a willingness to take on a little risk, whether through investing in stocks, starting a business or taking other chances.
However, some millionaires say sheer luck played an essential role in getting them to where they are today. It’s worth noting that the percentage who say this is relatively small, at just over 1 in 10 people.
3. Living within their means
Survey participants who said this is the top driver of their ability to accumulate $1 million: 69%
A willingness to delay gratification and live within your means is a tried-and-true method of building wealth.
By foregoing pleasure today, you can invest more money and let it compound. Over many decades, that strategy is likely to leave you infinitely richer than if you had spent your extra income or — even worse — allowed yourself to slip into debt.
To get started on a more frugal lifestyle, read “Cut These 11 Expenses Now If You Hope To Retire Early.”
2. Earning a good income
Survey participants who said this is the top driver of their ability to accumulate $1 million: 71%
It is possible to grow prosperous on a small income, especially if you invest well and have a lot of time to build wealth. But it’s a lot easier to grow rich if you have a big income.
Money Talks News founder Stacy Johnson has gone well beyond accumulating $1 million, and he shares some of what he has learned in “5 Tips for Boosting Your Income to Reach Your First $1 Million.”
1. Financial planning and investing
Survey participants who said this is the top driver of their ability to accumulate $1 million: 80%
Some people get rich overnight by winning the lottery or inheriting big bucks. But most millionaires got to where they are slowly by investing money shrewdly over time.
In fact, a full 8 in 10 millionaires say they never would have achieved their lofty status without some good planning.
If developing a financial plan sounds intimidating, don’t fret. Instead, stop by our Solutions Center and find a great financial adviser who can help you craft a plan to achieve financial independence.