Who Makes a Self-Made Millionaire?
Posted: Tuesday, August 03, 2010
by Donovan Baldwin
No Diet 4 Me
Yes, I meant to say, "Who" and not "What". We know what makes a self-made millionaire. It's having a lot of money that you earned for yourself. I want you to think about "who" makes one of these individuals.
There are essentially three kinds of millionaires (or billionaires, if you want to think really big). Those who are born into wealth, those who luck into it, and those who create it for themselves. Those last ones are the ones we usually think of, and refer to, as self-made millionaires.
It's the third kind of millionaire that you and I are interested in...self-made millionaires.
The term says it all, doesn't it? Self-made....
Ever read the book, "The Millionaire Next Door"?
Most of the millionaires studied and profiled by the authors are really just ordinary people, and most of them don't do anything really extraordinary. They pretty much are people like you and me, except for one thing...they became millionaires...through their own efforts.
I have known a few millionaires in my life, and they are pretty much like the people outlined in the book. Two originated in category one, and two originated from category two, but the remainder were ordinary people who worked their way up to that financial plateau so many of us wish to achieve.
Still, the four from categories one and two, inherited or earned in some special way, had to work hard to hold on to what they had.
That seems to be common among category three as well. Self-made millionaires tend to work hard to get their money, work hard to grow it, and work hard to keep it.
They tend to put a lot of effort, either physical or mental, into acquiring their eventual wealth, and, once they have it, they expend a lot of effort hanging onto it.
Now, I'm not talking about torture, and I'm not talking about self-deprivation, either. Many actually enjoy the hard work they put into whatever their chosen way of life is. Holding onto their money makes sense to them.
Another common trait is that they live within their means.
Funny, that's what many financial advisors recommend as one of the most valuable and important steps in building wealth. In fact, if we think about recent economic events, we realize that credit, and uncontrolled use of credit, in particular, has brought about many of the unfortunate circumstances the world had experienced recently.
Self-made millionaires don't waste their money on the way up and don't waste it once they are there. Many buy second hand cars (usually for cash), drive them for years, shop at thrift shops, and do not waste personal resources...including their money. They eat out from time to time, but they do not commonly dine at the finest restaurants. They go on vacations, but they plan them, save for them, and find good deals.
Obviously, a person, or family, with three million dollars may make a few different choices than one with "only" one million, but the way of looking at money...and work...remains essentially the same.
In other words, the self-made millionaire is made by...well...ones "self". They make choices to protect their money, use it wisely, and accumulate it so that it will build up to a level which can be referred to as wealth.
Advisors as diverse as radio commentator and financial advisor, Dave Ramsey, and George Clason, author of the classic, "The Richest Man In Babylon", offer the same advice. They all say pay yourself first, allow that money to grow, put it to work for you and live off what is left.
While there are instances in which assuming credit can be of value if practiced carefully, that is best left to the experienced investors, especially if you have any history of misuse of credit, or no experience at all.
Take a portion of anything you earth as your share before you buy anything else. Put that money aside. Save it, protect it, and, when it is large enough, invest it for long term growth. In time, that money will increase in size and, if you put in enough and let it grow long enough, you may eventually be one of those self-made millionaires yourself.
I recommend that if you wish to build wealth and possibly join their ranks, you should read, "The Richest Man In Babylon", by George S. Clason, "The Total Money Makeover" by Dave Ramsey, and "The Millionaire Next Door" by Thomas J. Stanley. These are all available at a very low cost from Amazon.com and can possibly be found for free at your local library.
Don't go out and buy expensive books. Do it cheap, take what you save and start building your wealth, and your library, today.
ABOUT THE AUTHOR:
Donovan Baldwin is a 65-year-old accountant, amateur bodybuilder, freelance writer, certified optician, and Internet marketer currently living in the Atlanta, Gerogia area. A University Of West Florida alumnus (1973) with a BA in accounting, he has been a member of Mensa and has been a Program Accountant for the Florida State Department of Education, the Business Manager of a community mental health center, and a multi-county Fiscal Consultant for an educational field office. He has also been a trainer for a major international corporation, and has managed various small businesses, including his own. After retiring from the U. S. Army in 1995, with 21 years of service, he became interested in Internet marketing and developed various online businesses. He has been writing poetry, articles, and essays for over 40 years, and now frequently publishes original articles on his own websites and for use by other webmasters. He offers a line of do-it-yourself legal software at http://legalhelp.xtramoney4me.net .
This Article has been viewed 432 times. (Not updated in real-time.)
No comments yet.We want your comments! If you can read this, you don't have javascript enabled, so you can't use this comment system. Please enable javascript.