20 Signs You're Destined to Become a Millionaire
Free Book Preview Money-Smart Solopreneur
Becoming a millionaire may seem like an unobtainable dream, but in reality, it's a lot more common than you think. There are 42 million millionaires worldwide in 2018, up from 36 million the year before, according to Credit Suisse's annual Global Wealth Report.
The right mentality can help you on the road to wealth. Here are 20 signs you're destined to bring in the big bucks.
You started making money at a young age
One of the most common traits that the wealthy have in common is that they began earning money at a young age. For example, a 12-year-old Mark Cuban sold trash bags door-to-door, Warren Buffett sold packets of gum to his neighbors when he was just six years old and Richard Branson bred and sold parakeets as pets at the age of 11.
If you had this entrepreneurial spirit as a child, then that's a solid indicator that you've always been on the lookout for ways to make money.
You’re an overachiever
Were you that student who wasn't satisfied with a B in class? Many millionaires have the mindset to shoot big. They're not satisfied with making just $1 million -- they want to make $10 million.
It may not be fair, but according to research conducted by Daniel Hamermesh, an economics professor at the University of Texas in Austin, "Attractive people are likely to earn an average of 3 percent to 4 percent more than a person with below-average looks." That may not sound like a fortune, but it could add up to "$230,000 more over a lifetime for the typical good-looking person." Hamermesh found that attractive people may be better able to charm interviewers and land more sales.
You have an action-oriented mindset
"Are you the kind of person who sees an opportunity and then takes action to take advantage of it? If so, congratulations, because it's that kind of action-oriented mind-set that can propel you to financial freedom," writes Todd Campbell, author of Your Guide to Better Stock Picks, in a piece for The Motley Fool.
"For example, it's been proven time and time again that long-term investing can produce significantly more wealth than short term trading, yet many Americans fail to make the most of their best long-term investment vehicle: their workplace retirement plan," Campbell continues. "Do you contribute to your workplace retirement plan? If so, do you contribute 10 percent of your income? More? Less? Considering that someone who contributes 10 percent of their $40,000 in income to a 401(k) plan at a 6 percent return has $311,572 more after 35 years than one who contributes 3 percent, under-utilizing retirement plans is a surefire way to derail you on your way to millionaire status."
You possess a sense of urgency
Millionaires don't wait for the perfect time to invest or launch their business. Many of them realize that there's no better time than the present to start making money. Sitting back and waiting is one of the best ways to squash your dreams. Bottom line: Start working towards your goals right now.
You’re focused more on earning than saving
It's no secret that the wealthy tend to be frugal with their money. While they excel at saving and spending wisely, they also know that one of the best ways to make more money is to invest some of what they earn.
You keep an open mind
You never know when an opportunity is going to present itself, and if you immediately shut down the thought of investing in said opportunity, then you could be losing out on making a fortune. That doesn't mean every idea is a winner -- it's important to think critically and ask the right questions before making significant moves. That's why the wealthy tend to keep an open mind when it comes to new ideas.
You were Mr. or Mrs. Popular in high school
"Moving from the 20th to 80th percentile of the high-school popularity distribution yields a 10 percent wage premium nearly 40 years later," suggests research by Gabriela Conti (University of Chicago), Gerrit Mueller (Institute of Employment Research), Andrea Gaeotti (University of Essex) and Stephen Pudney (University of Essex). In other words, if you had a significant number of friends in high school, then you may have a better chance of earning more money in your adult life.
You’re able to live below your means
Another common trait that millionaires have in common is that they're usually able to live below their means. Instead of flaunting their wealth, many drive practical cars, live in modest homes and don't spend their hard-earned cash on luxury items. (For example, my wife and I try and budget at least 50 percent of everything we make into our savings account, which we can put towards investments. These make us a lot more money in the long-term.)
You can defer gratification
"Deferring gratification is one of the most important steps to becoming a millionaire," writes Jason Hall, a writer and editor for The Motley Fool. "The reality is building wealth generally takes a lot of time. Even Warren Buffett, one of the richest people alive and arguably the best investor ever, created more than 80 percent of his vast wealth after he turned 50."
You have a mentor
It's no secret that the people you associate with can affect how successful you'll be. Think about it: If you're spending the majority of your time with people who are negative or don't have the drive to succeed, then do you think that they're going to influence you to be more motivated and optimistic?
In other words: If you want to be wealthy, start hanging out with millionaires. This won't just keep you motivated -- you also may be able to find a someone who is willing to become your mentor and show you the ropes. If you don't personally know any millionaires, don't be afraid to reach out to them on social media or through an email to start building a rapport.
You’re not stuck in the past
Talking about the "good old days" may work for politicans, but it's not going to fly for millionaires. These are people who have gotten over failure, rejection and fear, and they're most concerned with putting their energy into their futures.
You’re a goal-setter
The wealthy spend time thinking about their long-term goals and needs. "You don't make a million by accident," writes Peter Voogd, founder of The Game Changers Academy, who made his first million before turning 26. "If it's not a goal, you sure as hell won't hit it."
You aren't divorced
It may seem unrelated, but according to a 2006 study out of Ohio State University, divorce could reduce a person's wealth by about 77 percent compared to that of a single person. Being married, on the other hand, may be correlated with almost double the comparative wealth (93 percent).
"Divorce causes a decrease in wealth that is larger than just splitting a couple's assets in half," said Jay Zagorsky, author of the study and a research scientist at Ohio State University's Center for Human Resource Research. "If you really want to increase your wealth, get married and stay married."
You know how to maximize your strengths
Gary Varynerchuk once said, "I suck at 99 percent of stuff, but I go all out on that 1 percent I'm good at."
That's not to say that you shouldn't learn something new or work on some of your weaker skills; instead, it means that millionaires are able to capitalize on their greatest strengths and then surround themselves with people who can enhance their weaknesses.
People with the capacity to make millions don't often whine, complain or point fingers when it comes to blame. Instead, they accept challenges and look for ways to conquer them.
"Rich people believe, 'I create my life,'" writes T. Harv Eker in his book, Secrets of the Millionaire Mindset. "Poor people believe, 'Life happens to me.'"
You may have a drink, but you don’t smoke
Did you know that men who are self-reported drinkers earn 21 percent more than those who abstain from drinking, while women who drink earn 8 percent more than non-drinking females? The reason may be tied to the idea that drinking could enhance social capital, according to research published in 2006.
However, the wealthy seem to avoid smoking, according to research published in 2004. Eventually, those packs of cigarettes add up: Nonsmokers' net worth tends to be about 50 percent higher than that of light smokers and more than twice that of people who smoke heavily.
You have thick skin
Worrying about what others think of you can hold you back, so it's important to build a thicker skin. Mental toughness can lead to success, since the quality can assist in handling pressure and overcoming challenges.
You keep up with current events
The most successful people in the world kick off their early mornings by catching up on current events. For example, Warren Buffett and Bill Gates reportedly read publications like The Wall Street Journal, The New York Times, USA Today and The Financial Times so that they can make more informed investment decisions based on what's going on in the world.
You’re constantly improving yourself
While having a college degree can make a difference in determining your net worth, that degree ultimately doesn't determine if you'll become a millionaire or not. Bill Gates is one of the most famous college dropouts of all time, and it hasn't stopped him from continually improving himself by reading and learning new skills.
Here's to becoming the next millionaire.