5 Habits That Can Make You a Millionaire
It is often believed that millionaires are persons who have discovered some secret to financial success or are innovators who have come up with some brilliant business idea and put it into practice. But getting your first million and keeping it need not involve such dramatic action. Diligence is the real key to unlocking the doors of financial success. Doing a number of seemingly small things can help you turn modest investments into significant holdings.
Most millionaires are not like the ones you see on television. They do not live jet-set lifestyles or spend their time going to parties. They are quiet, sensible people who have learned how to manage their investments in a way that maximizes returns from them.
- Minimize taxes
- Keep investment costs low
- Pay close attention to all ventures
- Take calculated risks
- Buy appreciating assets
This is good advice. Minimizing taxes and keeping investment costs low are two things that especially hit home with me. You might be surprised at how much you actually pay in investment fees. Paying a one percent fee to the person who manages your mutual fund may seem as though it’s not that big a deal. But over time that can add up to a great deal of money. Make sure you’ve shopped around and are working with a mutual fund that gives you the best deal you can possibly get.
Minimizing taxes is also an important habit. You can go to your accountant or you can figure it out for yourself. But doing what is necessary to keep your tax liability low is essential to financial success.
A detailed discussion of the other investing tactics can be found here. Doing these simple things can ensure that your combined net worth grows steadily. You don’t need brilliance or luck to make a million. Shrewdness, discernment, and situational awareness will do. When looking for a model for success, you should observe not those who flaunt and flash their wealth but those who are disciplined and tough-minded about their investments.
About Christopher Reid Chris was born in Washington, D.C. and lives in Britain. He works as a blogger, essayist, and novelist. His first book, Tea with Maureen, has just been published.