According to Time Magazine, the Spectrum group recently conducted a survey of millionaires with a net worth of $25 million or more. Here’s what these folks do for a living:
- 27% are entrepreneurs
- 15% are corporate executives
- 7% are managers
- 6% are investors
- 6% are doctors or dentists
Entrepreneurs make up the vast majority of those in the super-rich. What behaviors and qualities do they have in common?
Prudent Risk Taking
Seventy-five percent of those surveyed contribute their accumulation of wealth to prudent risk-taking. What does it mean to be a prudent risk-taker? Prudent risk-takers have the ability to look at a modern day problem and create innovative solutions. Think of people like Henry Ford and Steve Jobs. They educate themselves on current circumstances then draw outside of the lines to come up with new solutions to an existing problem. You don’t have to change the world to be a prudent risk-taker. You need only change your world.
Many people who attribute their success to prudent risk-taking also state they benefited from serendipity or being in the right place at the right time. You can create serendipity in your business be being open to the suggestions and ideas of others.
Both professionals and entrepreneurs give an overwhelming amount of credit to their education as a component of their success. A proper education can open doors for executives, entrepreneurs or professionals. Educational environments help people learn not only how to be successful but create opportunities for folks to network with the movers and shakers who can open doors for them down the line.
Living a Frugal Lifestyle
The majority of the super-rich commit to living a lifestyle within their means. They spend significantly less than they earn which keeps money available for building wealth in the form of solid investments. The super rich know the best way to make money is to save money.
Many people in the super-rich club regularly clip coupons and bring leftover food from their restaurant meals home. Some of the super-rich cut their own hair and buy discount clothing. The message here is that spending less money on non-necessities creates more money available for income producing investments.
The majority of the super-rich surveyed agree that smart investing is the path to accumulating wealth. Smart investing is a culmination all of the aspects listed above (prudent risk-taking, education and frugality). First, you must be able to take risks based on the facts and not emotion. Second, you must thoroughly understand the investment before you put your money down. Third, you must spend less than you earn so you have money available to invest.