Through the years, I have conducted interviews with hundreds of millionaires aiming to gain insights from their experiences and wisdom.
These have been published as Millionaire Interviews, showcasing my specific inquiries along with their replies.
After a few hundred interviews, I recognized that there was remarkable insight in several of the questions posed, particularly when the answers from different individuals are considered in sequence.
I’ve chosen to share these here on ESI Money in my Millionaire Wisdom series.
Please note that not every millionaire responded to every question, and I sometimes adjusted the questions, which is why every millionaire isn’t included below.
Today we advance the series (see part 1 here to begin) with millionaires responding to the following question:
What advice do you have for ESI Money readers on how to build wealth?
Here are their answers…
Millionaire 396
Live below your means. Invest the remainder simply. You can only become richer than you were before.
Millionaire 397
Becoming wealthy is pretty simple:
– Begin by selecting a field that you are passionate about.
– Identify a niche within that field that lacks skilled professionals.
– Enhance your skills in that sector.
– Negotiate salary increases as your value grows within your company.
– Switch jobs if necessary. In most cases, it appears easier to negotiate a new title and salary with a new job compared to staying in your current position.
– Aim to save at least 30% of your paycheck. My objective would be to consistently save 50% or more. Reaching this goal becomes more feasible as our salaries rise.
– Start investing early, even with a small amount. A modest investment compounding over time can grow into a significant sum.
– Invest consistently from all paychecks. Automation in investing removes emotions from the process, enabling anyone to accumulate wealth over time.
Millionaire 398
Begin investing the moment you start working, allocate 20% of your earnings, and save any bonuses if you’re lucky enough to receive them. Focus on enhancing your income through promotions, bonuses, or moving to a new employer. Regularly monitor your net worth. Create or join a group of like-minded investors that meets often. The earlier you concentrate your efforts, the quicker you’ll reach your financial aspirations. Find a partner who shares your vision, as this can also expedite your wealth-building. Use tools to plan your future goals and maintain consistency.
Millionaire 399
Learn where you are directing your hard-earned funds, and verify that they are going where you expect.
Millionaire 400
The most crucial life advice I can give is to marry the right person. If you don’t improve with them, they may not be the one for you. Late-in-life divorces can severely impact retirement plans. Invest in yourself. High earnings paired with the ability to save and invest is a powerful combination. You can become a millionaire by saving and investing a modest salary, but the potential scale and pace of accumulation is undeniably greater with a higher income. Work hard early, before having children. Establish the foundation, and that effort will yield returns for years to come. This entails choosing a career you believe has long-term prospects. Transitioning careers later can negatively affect earnings. I opted for a career with strong income potential, was in demand, and generally enjoyed it. My enjoyment of work evolved over the years, but true happiness was found in the life that my work facilitated.
Millionaire 401
I conduct personal finance training and money coaching on the side and have been fortunate to examine numerous people’s finances. I would suggest there are only three fundamental financial questions one must answer correctly, which you can teach to a seventh grader:
– Will I save money?
– How much can I save?
– What do I invest in after that?
If you commit to saving regularly, set aside an above-average portion (at least 15-20%), and invest in Low-Cost Index Funds such as those offered by Vanguard…if you live long enough, in this country, you’re likely to become wealthy. Many people are either house poor or vehicle poor, or both. Steer clear of foolish vehicle and housing purchases. My wife’s grandparents resided in the same home for 51 years. While we may not entirely emulate their example, concepts like “starter homes” primarily benefit the real estate market. The same issues exist with cars. If you can’t buy a car and fully pay it off in four years…you can’t afford it. Vehicles should ideally be kept for a minimum of ten years. Whether you drive an old clunker or a Ferrari, they both serve the same purpose of transporting you from point A to point B. Additionally, you