Being a millionaire isn’t as hard as you think – even though their numbers have dropped in the wake of the economic crisis. Here are some things you need to know about being one, courtesy of Smart Money magazine.
- First, they don't behave like they’re rich. In fact, a Fidelity Bank survey found that almost half of all millionaires don't feel wealthy. They worry about health care, retirement, and how they'll maintain their lifestyle, just like we do.
- Next, millionaires love a good bargain just like we do. Since most millionaires come from middle-class households and haven't been rich for longer than 15 years, they know how to be frugal. They spend with a middle-class mindset. While you probably won't find them shopping at the 99-Cent Store, they definitely buy things on sale, hunt for bargains, and clip coupons. In fact, a Nielsen study found households with incomes over $100,000 a year tend to be heavier coupon users than those that don't make that much.
- So how’d the millionaires get their money? According to an American Express/Harrison survey, only 5% of them inherited it, and a third either had a professional practice or worked in the corporate world. The most common way people in North America got rich was by starting their own business. It’s pretty risky, but it’s the number one way to join the millionaire’s club.
- Also, the one thing all millionaires have in common is that they make good use of their debt. In other words, they’ll take out a low-interest loan to pay off their high-interest credit card debt.
- Finally, most millionaires didn’t do that well in school. According to the book, The Millionaire Mind, their average college GPA was 2.9, or a “B.” They say that the key to their success is hard work, determination, and being respectful to others. However, don’t completely write off a good education. Almost half hold an advanced degree. For every PhD millionaire, they are several average Joes who worked their way up.