Through the years, I have conducted interviews with hundreds of millionaires to gain insight from their experiences and expertise. I’ve published these as Millionaire Interviews, which include my tailored questions and their answers. After several hundred interviews, I recognized that there was remarkable wisdom in many of the questions I posed, particularly when the responses from various interviewees were compared sequentially. I have chosen to present these here on ESI Money as part of my Millionaire Wisdom series. Please note that not every millionaire responded to each question, and I occasionally modified questions, which is why not every millionaire is included below. Today, we proceed with the series (see part 1 [here](https://esimoney.com/millionaire-wisdom-how-to-grow-net-worth) to commence the series) with millionaires addressing the following question:
**How did you accumulate your net worth?**
Here are their replies…
**Millionaire 137**
Absolutely, this comes from earning more than we expend. No inheritances. And, as far as I can ascertain, merely average investing.
**Millionaire 138**
Christmas club (just joking). Graduated from grad school with two degrees, a solid job, and $11,000 in student debt. Started from there. Earned good money, although not astronomical sums. My wife also had a stable income. Then – I invested in stocks like clockwork. Month in, month out, through both favorable and unfavorable markets. As 401(k) plans were introduced around my graduation time, I began investing right away. Always maximized the company match, increasingly so as my income grew. Consistently lived beneath my means, perhaps to an extreme. Never panicked when markets appeared grim. Bonuses were reinvested rather than spent. Company stock options were cashed and reinvested in ETFs. I preferred not to have my salary, pension, and savings all reliant on one source. Practically no inheritance ($7000 in total). Never had consumer loans (car, furniture, etc.) and paid off credit cards monthly (used solely for convenience and travel rewards). We carry no debt. Acquired our home in 2000, refinanced in 2004 (15-year fixed), and settled it by late 2012. Paid cash for vehicles, furnishings, etc. financed both girls’ college (attended state schools; tuition and room/board in the $20k/year range). Purchased late-model, low-mileage cars for both daughters (safety was a priority) and they too have no car loans.
**Millionaire 139**
I have reached my net worth objectives three distinct times and lost a large portion of it on two occasions. Saving the first million is undeniably the hardest part. We began working in June 1987 and accomplished saving our first million by June 1996, which meant it took us nine years at 30 and 31 years old. I would like to claim it was achieved through frugal living, but that was not the case. We purchased new cars, owned a boat, and acquired a nice house. We traveled extensively. We regularly saved 10 to 15% of our pre-tax income alongside employer contributions and never exceeded our earnings. We were a dual-income professional household without children, making it relatively easy to live within our means. IRA contributions likely contributed about 20% of our million-dollar target over those nine years. Home equity tacked on another 5%. Saving bonuses accounted for an additional 5 to 10 percent, and a significant portion came from stock appreciation/ownership in a startup where I served as CFO. The CEO, who was my mentor, was removed by the primary investor who wished to take over three months before the IPO. I remained for three months after the IPO endeavor before resigning to finish my MBA full-time.
From that initial million in savings:
– I financed my MBA tuition — which turned out to be a fantastic investment.
– We bought a used ski boat (not the best investment, but incredibly enjoyable).
– I started and funded an IT tech company with a high school friend.
– I joined a local real estate development group and invested my portion of equity as a part-time partner focusing on finance and banking.
Our timing for the IT venture was late 1998, just as companies were pouring millions into IT upgrades for ERP systems. My friend held a managerial position at KPMG and had numerous contacts for both recruits and clients. Our business model was straightforward — we recruited as many consultants as possible from the big five firms, each with 1 to 3 years of experience. We provided our clients a superior value compared to the big five. We shared equity in the company and developed a profit-sharing model for every consultant based on their individual performance. We had company trips to warm locations with inviting spouses and partners. We owned a company boat, and our office was located next to Wrigley.