Countless people have chased after the idea of becoming a “millionaire,” only to fall short. While a million dollars today buys much less than it once used to, desires to be financially comfortable and independent are undiminished. So, what are individuals that have a high net worth doing right? Surely, they have unlocked some secret to financial freedom and success.
Well, this may be true — it has been found that there are certain behaviors that individuals with a high net worth appear to share, regardless of age or income. So, as you evaluate your personal financial health, take a page out of a millionaire’s book and consider applying these principles to your financial life. If managing your money doesn’t come easy to you, you should know you’re not alone. At TrueNorth Wealth, we provide financial planning services in Salt Lake County and the surrounding areas for individuals and families that want to maximize their savings, increase their net worth, and improve their financial stability.
Live Below Your Means
Sarah Stanley Fallaw, director of research for the Affluent Market Institute, recently conducted a study surveying 600 millionaires and found that one key trait they all shared was that of frugality. They expressed commitment to saving and sticking to a budget.
Millionaires do not heed social pressures to “keep up with the Joneses,” or to always have the latest and greatest of everything. They resist the temptation to spend more when they make more, focusing instead on a long-term wealth plan that involves saving and investing. By living below their means, these individuals increase their financial security and overall net worth.
Set Goals and Make Plans to Achieve Them
Whether your goal is to get physically fit, learn a new skill, or increase your financial standing, you will not get very far without setting goals and making plans to achieve them. Just as a physical trainer will give you a workout regimen to reach your physical goals, you need specific plans in order to achieve financial independence.
Millionaires understand this and are consistent planners. In fact, financial author Chris Hogan found that 92% of the millionaires he surveyed had a long-term plan for their money. This is in comparison to only 25% of total Americans that have a written financial plan. The numbers don’t lie; having a financial plan is key to increasing your net worth.
Have Confidence in your Financial Management
Even when living below your means and sticking to a financial plan, you will not get very far without confidence in your personal wealth management. This includes confidence in investing, estate planning, and retirement planning. It is nearly impossible to stick to your plans if you are not confident that they will be successful. In fact, Fallaw’s millionaire study* also showed that confidence was another behavior directly correlated with high net worth.
Confidence comes from knowing that your investments are in the right places and that you have a financial plan catered to your individual needs. Working with a trusted financial expert can ensure that you have confidence in all areas of your finances. At TrueNorth Wealth, we offer fee-only financial planning services in Utah County and are dedicated to helping you have confidence in your estate planning, investments, and overall wealth management. We are committed to creating a personalized financial plan that will help you achieve financial freedom.