Thomas C. Corley spent five years studying millionaires and gathered his insights in “Rich Habits: The Daily Success Habits of Wealthy Individuals.”
Corley interviewed 233 individuals with at least $160,000 in annual gross income and $3.2 million in net assets, 177 of whom were self-made.
He found that most people who became wealthy didn’t have special talents, fancy job titles, high salaries, or excessive material possessions.
Financial success is available to almost anyone who is willing to save diligently, invest prudently, work hard, and maintain good habits.
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Who says you need to be an actor, musician, professional athlete, or high-powered executive to be rich?
The truth is, you don’t need a fancy title, special talent, or face for TV to become wealthy. It’s ultimately about cultivating and maintaining good habits.
Thomas C. Corley, a certified public accountant and certified financial planner, spent five years studying millionaires and gathered his insights in “Rich Habits: The Daily Success Habits of Wealthy Individuals.”
Corley interviewed 233 individuals with at least $160,000 in annual gross income and $3.2 million in net assets, 177 of whom were self-made. He uncovered dozens of facts about rich people and their daily habits.
Here are some of the most interesting facts from Corley’s research that will help you think differently about building wealth.
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You’re wealthy when passive income equals or exceeds living expenses
Corley believes the benchmark for being considered “wealthy” is when a person generates enough passive income to cover their expenses. In other words, they don’t need to earn a consistent paycheck from a job to live comfortably.
Someone whose lifestyle costs $150,000 to $160,000 a year would need investments totaling about $3.2 million, he says. Those who live on much less, say $50,000 to $60,000 a year, would need $1.2 million invested to generate their annual income.
“The key to being wealthy, therefore, is standard of living costs that are less than your passive income. Your standard of living can make you wealthy — or not,” he says.
Self-made millionaires live relatively modest lives
Self-made wealthy people don’t always have the fanciest car, house, or jewelry. In fact, it’s rare, says Corley.
Eight-three percent of the self-made millionaires in his study lived in a modest house, purchased good used cars, ate most meals at home, and bought cheap clothes. They also overwhelmingly avoided spontaneous and emotional purchases.
“Never buy anything on impulse. It is almost always the wrong thing to do,” Corley says. “That spontaneous or emotional purchase will lose its luster after only a few weeks. Then you’re stuck with something you don’t need and that does not generate any income.”
Financially successful people know when to say ‘no’
Millionaires are selective about the tasks they take on and the opportunities they accept, says Corley.
Importantly, they’ve grown comfortable saying no to things that don’t support their own progress, and yes only to …read more
Source:: Business Insider