Building Wealth

“Building wealth has almost NOTHING to do with your income or your background. It doesn’t matter where you come from. It matters where you’re going.” Chris Hogan

In Everyday Millionaires, author Chris Hogan reveals how ordinary Americans built extraordinary wealth over the long term. In his book, he demonstrates how these ordinary American millionaires live on less than they make, avoid debt, invest, are disciplined and responsible. In short, most accumulated their wealth over the long term by being disciplined and making wise financial decisions, according to Hogan.

Having a particular mindset almost universally contributed to millionaires’ success, Hogan said. Building wealth has almost nothing to do with your income or your background, he states. “It doesn’t matter where you come from. It matters where you’re going.”

“These numbers show that becoming a millionaire doesn’t happen overnight. It’s a marathon, not a sprint. By using the basic tools of saving and investing, you can make your money work for you to build wealth.” Chris Hogan

The National Study of Millionaires is a research study conducted by Ramsey Solutions with over 10,000 U.S. millionaires to gain an understanding of personal finance behaviors and attitudes that factored into their financial success.

8 out of 10 of millionaires invested in their company’s 401(k) plan, and that simple step was a key to their financial successhttps://t.co/QSM3DbRPQo

— ELB (@ebrownl33) August 25, 2021

The research study provides the facts about what it takes to become a millionaire:

Consistency and discipline through investing in a company-sponsored 401(k) is how most millionaires accumulated wealth.
Most millionaires are self-made.
Many millionaires surveyed never made six figures in a year.
Most millionaires come from at or below middle-class income levels.
Most millionaires have regular jobs.

About 20 million people in the U.S. have accumulated enough assets to fit the definition of millionaire, according to a 2020 study by Credit Suisse.

According to Hogan, more than 90% of millionaires used several tools to build wealth:

Take personal responsibility – around 97% of millionaires surveyed believed they were in control of their own destiny. That is much higher than the 55% of the general population who held the same opinion.
Practice intentionality (make a plan) – invest in 401k p, get out of debt and stay out of debt.
Spend less then the earn – 94% of millionaires live on less than they make, compared to 55% of the general population”
Look for deals – 93% of millionaires use coupons, some or most of the time, 85% of millionaires use a shopping list and spend less than $200 a month in restaurants eating out
Make a budget – 93% stick to a budget they create and 64% still live on a budget
Consistent – 96% of millionaires do not carry a balance on their credit card”

Most wealthy people end up financially secure because they make distinctly different financial decisions throughout their life than the majority are willing to make. A few of these decisions are the manner in which they spend, save, invest and use debt.

By staying disciplined, living small by significantly spending less than you earn, and understanding how to use debt strategically, you can too build wealth. The process of building your wealth may require you to get comfortable using leverage.

The wealthy tend to use debt in a very strategic and deliberate way. They mostly use it to purchase income-producing assets and rarely to purchase liabilities like the hot new luxury car or to take the desirable exotic vacation (at least not until later in life).

References:

From Gratitude to Greatness: Brownlee Global's Path to a Purposeful Life

Guide and Educate Individuals How to Build Long-Term Wealth, Better Manage Their Money, and Achieve Financial Freedom

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