Over the years, I have spoken with countless millionaires to gain insights from their experiences and expertise.
I’ve shared these as Millionaire Interviews, including my tailored questions and their answers.
After conducting several hundred interviews, I recognized remarkable wisdom in many of the inquiries I posed, particularly when comparing the answers from various interviewees sequentially.
I’ve chosen to share these here on ESI Money in my Millionaire Wisdom series.
Please note, not every millionaire responded to every question, and I occasionally rephrased questions; hence, not all millionaires appear below.
Today, we continue the series (see part 1 here to kick off the series) with millionaires responding to the following question:
What guidance do you offer ESI Money readers for achieving wealth?
Here are their insights…
Millionaire 396
Live within your means. Invest the remainder simply.
You can only become wealthier than you once were.
Millionaire 397
Achieving wealth is quite simple:
– Begin by selecting a field you are passionate about.
– Identify a niche in that field lacking skilled professionals.
– Enhance your skills in that domain.
– Advocate for pay increases as you increase your value to your company.
– Switch jobs if necessary. It often appears to be easier to negotiate a higher title and salary with a new position than in your current role.
– Save at least 30% of your earnings. Aim for a consistent saving of 50% or more as salaries increase.
– Start early with investments, even if it’s a small sum. A minor investment compounding over time can grow into a significant amount.
– Invest regularly from each paycheck. Automating your investments removes emotional barriers, allowing anyone to build wealth over time.
Millionaire 398
Begin investing as soon as you start working, allocating 20% of your earnings, saving bonuses if you’re lucky enough to receive them, and focusing on increasing your income through promotions, bonuses, or job transfers.
Regularly monitor your net worth.
Either form a network of similar-minded investors to meet often, or join an existing group. The sooner you concentrate your efforts, the faster you’ll meet your objectives.
Have a partner who shares your financial goals; this can expedite your wealth accumulation.
Utilize tools to project your future goals and maintain consistency.
Millionaire 399
Learn about where you allocate your hard-earned money and verify that it’s being used as intended.
Millionaire 400
The most valuable life advice I can offer is to choose your partner wisely. If they don’t enhance your life, they may not be the right fit for you. Gray Divorce, or divorcing later in life, can derail retirement plans.
Invest in your own development. High earnings combined with the ability to save and invest provide a powerful advantage. You can grow wealthy by saving and investing a modest salary, but higher income undeniably accelerates that process.
Put in hard work early, before having children. Establish a solid foundation that will yield benefits for years ahead. This involves choosing a career with long-term potential. Changing careers late can negatively affect earnings.
I opted for a profession with significant income potential that I mostly enjoyed and was in demand. What I appreciated about work evolved over time, but true joy came from the life that my job allowed me to lead.
Millionaire 401
I conduct personal finance training and money coaching on the side and have been fortunate to review many individuals’ finances. There are only three essential financial questions you need to answer correctly, and you can teach them to a 7th grader:
– Will I save money?
– How much can I save?
– What should I invest it in thereafter?
If you commit to saving consistently, allocate an above-average portion (at least 15-20%), and invest in Low-Cost Index Funds like those offered by Vanguard…if you live long enough, in this country, you will likely accumulate wealth.
Many individuals are either house poor or car poor, or sometimes both. Avoid unnecessary vehicle and housing purchases.
My wife’s grandparents resided in the same house for 51 years. While we may not follow their example entirely, concepts such as “starter homes” primarily benefit the real estate industry. The same issues arise with vehicles. If you cannot purchase a car and pay it off in four years…you cannot afford it. Cars should be kept for a minimum of ten years. Whether driving a beater or a luxury vehicle, the purpose remains the same: to get from point A to point B.