A financial analyst has revealed the best money saving habits after surveying almost 200 millionaires.
Tom Corley, an accountant and financial expert started laying out surveys to millionaires in 2004. Additionally, Tom’s criteria of a “wealthy” person includes anyone who has a $160,000 annual gross income and $3.2 million in net assets.
The Millionaire Phenomenon
Tom has recently secluded three of the most common money saving techniques adopted by most millionaires. A part of his research was also posted in CNBC. According to Tom, there are 4 main categories of millionaires.
“Saver-investors”, who usually involve themselves in saving and investment techniques. These millionaires have also made saving and investing a part of their everyday routine.
“Company climbers”, are those millionaires who focus on climbing the corporate ladder.
“Virtuosos”, those people who get deserving profits for what they instil in an operation. Tom said that they “are among the best at what they do, and they’re paid a high premium for their knowledge and expertise,”.
“Dreamers”, are those people who contemplate and wish to construct their own business empire.
He came round to the idea that in spite of how distinguishably millionaires earned their money, there are a few habits that can be found amongst all of them. And those habits are of saving and investing, as he highlighted.
“Every saver-investor in my study consistently saved 20 per cent or more of their net pay, each paycheque,” Tom wrote.
Tom further found out that 10% of the 20% savings get stacked up in retirement accounts. The the other 10% goes into their savings account. He figured thats its natural for wealthy people to stack 10% of their income into investment accounts. He later recognised that this is the reason why most of them manage to gain a passive income in order to get extra-rich.
