Tips from Average People Who Retired as Millionaires
If you see yourself as an average kind of person, then you might think you’ll never have the chance to retire as a millionaire. But, that’s not true. There are many so-called average people who retired as millionaires, and they’re sharing some of their tips and tricks. So, no matter your age or where you’re at in life, there’s hope that you, too, can retire with more than $1 million.
Tips and Tricks from Average People Who Retired as Millionaires
Start saving now. One of the most obvious things to do if you want to retire a millionaire is to save, save and save. This varies depending on your age group. For example, DutchPoint.org notes that if you’re age 20 to 25, you can start saving about $300 a month, and if you keep that up, you should be able to reach your retirement savings goal when you’re ready. If you start saving at age 35, that goes up to $700 a month to reach $1 million by age 65. If you’re 45 to 50, to become a millionaire by age 65, you would need to save $3,000 each month. So, it’s obviously much more difficult the older you get. But, it’s not impossible.
Choose some investments that generate income. Look into investments that could give you some extra cash. Nick Disney is a multi-millionaire who plans to retire at age 44. He tells Yahoo! Finance that his main strategy is to invest in real estate. “[Investing in real estate] will help you create wealth and provide monthly cash flow that can replace your salary, so you can retire when you are ready,” he says. “I like this strategy, because almost anyone can do it, you can scale it up to fit your needs, and it is one of the most tried and true methods to create wealth in history.” If real estate isn’t your thing, get with a financial expert to get advice on some other investment opportunities that would be more suited to you.
Invest in your 401(k), and go big. Finally, you know about your company’s 401(k), but are you really maximizing it? According to The National Study of Millionaires, eight out of 10 millionaires invested in their company’s 401(k) plan. Most employers who offer a 401(k) plan will even match a portion of your investment, so take advantage of that, too. Also, if your employer offers a Roth 401(k) option, look into that, as well. It’s always a good idea to diversity your investments and retirement plans, so the more, the merrier. So, there are some tips and tricks from people who retired as millionaires. Of course, you should talk to your financial expert before you make any decision, since these are just suggestions. Read below for more tips on people who retired as millionaires.
Simple Habits of Millionaires, According to Experts
They Buy Their Cars (Instead of Leasing) and Keep Them As Long As Possible
Cars lose their value quickly. That’s why buying a used car is usually much less expensive than a new car. The second that car is off the lot, it’s considered used and drops in value thousands, even with just another mile on the car. That said, according to CNBC.com, wealthy people buy, don’t lease, their cars and keep them long-term. That way, they can save money between car purchases.
They Buy Their Cars and Keep Them
They Delay the Pleasure of Having the Finer Things in Life
According to RamseySolutions.com, “Millionaires spend most of their lives sacrificing temporary pleasures for long-term success. They have no problem buying an older used car, living in a modest neighborhood, and wearing inexpensive clothes. They don’t care about keeping up with the Joneses.” So, instead of picking up all the hot, expensive new stuff, wait it out.
They Delay Pleasure
They Educate Themselves on Money
If you’re a newbie to financial planning, listen to some podcasts on the subject or find a helpful book. Finance.yahoo.com says, “knowing how to become a millionaire isn’t innate, even for most wealthy people.” Research from certified financial planner and CPA Tom Corley shows that “63 percent of wealthy people listen to audio books during their commute to work versus 5 percent of poor people,” says Finance.yahoo.com.
They Educate Themselves on Money
They Network and Meet New People
In the same Finance.yahoo.com story, Corley says that networking is huge when it comes to becoming a millionaire. “On his Rich Habits blog, Corley revealed 79 percent of wealthy individuals network at least five hours per month, compared with only 16 percent of poor people,” they explain. So, get out there, and meet new people who could make up your network.
They Network
They Live Below, Not Within or Above, Their Means
Millionaires are frugal. They don’t splurge like you might expect. According to RamseySolutions.com’s The National Study of Millionaires, nearly half of millionaires in their poll said they save at least 16% of their monthly income. They often use it for an emergency fund or liquid cash.
They Live Below Their Means
They Make Use of Their Money By Investing
CNBC.com’s Select asked Faron Daugs, certified financial planner, founder and CEO at Harrison Wallace Financial Group, “about the financial habits his wealthiest clients all share that could apply to the average person.” One big thing he mentioned was building up emergency funds and then investing. “Daugs says his clients have organized investment plans, whether its in stocks, bonds or exchange-traded funds (ETFs),” CNBC explains. He also recommends having a “monthly or bi-monthly automatic transfer of cash from your checking account into an investment account.”
They Invest
They Invest in Particular Things
According to Fool.com, the wealthy “invest in stocks, real estate, and their own businesses.” They add that, “Millionaires put their money into appreciating assets (assets that can grow in value).” Also, “people with net worths of $1 million or higher tend to have more of their money” in stocks and mutual funds; real estate; and business interests.
They Invest in Specific Things
They Look at the Bright Side
Whatever your financial situation, look at the bright side. Look for opportunities for working with what you have and growing your nest egg. Reach out to experts in the financial field if you’re really stumped and see how they can make your financial dreams come true.
They Stay Positive
Don't Give Up
Wherever you are on your financial journey, don’t give up. It can be temping to just throw everything to the wind, but if you take a more level-headed approach, you’ll have a better chance of coming out successful. Good luck on your financial journey.
They Keep Trying
