Millionaires, especially self-made millionaires whose wealth wasn't inherited, have five particular personality traits, according to new research. The five personality traits that are particularly standout are: risk-taking, emotional stability, openness, extraversion and conscientiousness.
A net-worth millionaire is someone who has a net worth of at least $1,000,000. Net worth is a fancy way to say 'what you own minus what you owe. ' If that amount ends up being $1,000,000+, you're a net-worth millionaire."
How much money do you need to be considered rich? According to Schwab's 2022 Modern Wealth Survey (opens in new tab), Americans believe it takes an average net worth of $2.2 million to qualify a person as being wealthy. (Net worth is the sum of your assets minus your liabilities.)
Think you need to be a doctor or a lawyer to make $1 million? Think again. A wide variety of jobs can put you on track to becoming a millionaire, including familiar jobs like actuary and airline pilot, and less-familiar ones, like reservoir engineer.
Wealthy people don't simply expect to make more money; they plan and work toward their financial goals. They have a clear vision of what they want and take the necessary steps to get there.
Have multiple streams of income. Many self-made millionaires have money coming in from several places, including their salaries, dividends from investments, income from rental properties, and investments they have made in other business enterprises, to name a few examples.
At the age of 35, one should have about 5X gross income as a net worth. At the age of 45, one should have about 13X gross income as a net worth. By the time one turns 60, the net worth figure should be closer to 20X gross income.
By age 40, your goal is to have a net worth of two times your annual salary. So, if your salary edges up to $80,000 in your 30s, then by age 40 you should strive for a net worth of $160,000. Additionally, it's not just contributing to retirement that helps you build your net worth.
