Millionaires Live by These Rules To Build Wealth

Millionaires Live by These Rules To Build Wealth — Experts Explain If They’ll Work for You

Angela Mae   Mon, January 27, 2025  GOBankingRates

There’s an estimated 24.5 million millionaires in the United States. That’s a relatively small percentage of the country’s population, but it’s also not zero — meaning it’s very possible for more people to achieve “millionaire” status. It’s all about being strategic and intentional with your money and financial decisions.

If you’ve decided to truly pursue the goal of becoming a millionaire, you might be wondering how to get started. What types of rules do millionaires — especially self-made ones — follow to build (and maintain) their wealth?

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Here’s the answer, according to a Forbes article, and how well the average person can follow those rules to do the same, as per the experts.

Pay Yourself First

Building wealth can take a while, but you can get yourself on the right path by prioritizing saving money before you prioritize spending it. In other words, pay yourself first.

According to the Forbes article, you should be saving 20% to 30% of your total income. This means you should save $20,000 to $30,000 for every $100,000 you make. You can do this based on either net or gross income, but gross will result in greater savings potential.

“By prioritizing savings and investments before any discretionary spending, individuals ensure that they are consistently building wealth,” said Shirley Mueller, founder of VA Loans Texas. “The earlier you begin this habit, the more time your money has to grow, particularly through the power of compound interest.”

Live Below Your Means

Millionaires stay millionaires not because they flaunt what they have or spend their money with abandon, but because they live below their means. But they become millionaires because they also think big.

This means spending less than you earn, which could entail eliminating those unnecessary expenses or reevaluating your budget. And it means dreaming of — and planning for — a bigger future.

“Resist the urge to splurge! Once of the most common financial mistakes people make is to drastically increase their expenses as soon as their income increases,” said Melissa Murphy Pavone, founder at Mindful Financial Partners.

“Avoid the urge to spend more as you make more. Instead save more. Invest the difference. As you get a raise, give yourself a raise. Increase your 401(k) contribution. Add to your emergency fund. Your future self will thank you.”

Be Strategic With Debt

TO READ MORE:   https://www.yahoo.com/finance/news/millionaires-live-rules-build-wealth-210100915.html

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