The Millionaire Mind

1. Millionaires prioritize integrity and social skills over intellect

"Being honest with all people" was tied for first in regard to the percentage of millionaires who rated it as a very important reason for their economic success.

Integrity is paramount. Millionaires consistently rank honesty and strong moral values as critical factors in their success. Unlike popular belief, high intelligence or academic achievements are not the primary drivers of wealth accumulation. Instead, the ability to build trust, maintain relationships, and navigate social situations skillfully proves far more valuable in the long run.

Social skills trump IQ. The survey reveals that "getting along with people" ranks higher than "having a high IQ/superior intellect" in explaining millionaires' economic success. This emphasizes the importance of emotional intelligence, networking abilities, and interpersonal skills in building wealth. Millionaires often credit their success to:

• Strong leadership qualities
• Ability to sell ideas and products
• Having good mentors
• Ignoring criticism from detractors

2. Courage and financial risk-taking are essential for wealth accumulation

"Courage is taking positive moral actions that conjure up fear."

Calculated risks yield rewards. Millionaires understand that wealth accumulation often requires stepping out of one's comfort zone and taking financial risks. However, this doesn't mean reckless gambling or speculation. Instead, it involves:

• Careful analysis of potential opportunities
• Willingness to invest in one's own business
• Making informed decisions about investments
• Developing strategies to manage and mitigate risks

Overcoming fear is crucial. Successful millionaires have developed techniques to deal with fear and worry associated with financial risk-taking. These include:

• Believing in oneself
• Preparation and planning
• Focusing on key issues
• Taking immediate action to solve problems
• Visualizing success
• Seeking advice from trusted advisors

3. The right vocation is crucial for becoming a millionaire

"If you love, absolutely love what you are doing, chances are excellent that you will succeed."

Passion fuels success. Choosing the right career or business is a critical factor in becoming a millionaire. The survey reveals that loving one's career or business is a top factor in explaining economic success. This passion translates into:

• Higher productivity and dedication
• Willingness to work longer hours
• Ability to overcome obstacles and setbacks
• Continuous improvement and innovation in one's field

Finding a profitable niche. Millionaires often succeed by identifying underserved markets or creating unique solutions to problems. This involves:

• Studying the profitability of different businesses
• Recognizing opportunities others overlook
• Specializing in a particular area or service
• Being willing to enter unconventional or less glamorous industries

4. Economically productive households practice frugality and smart spending

"We have land … [and] mining operations and oil leases. We do not tell our friends about our holdings because many of those we associate with do not have as much as we do."

Frugality builds wealth. Contrary to popular belief, most millionaires live well below their means and practice careful spending habits. This includes:

• Using coupons and shopping for deals
• Buying in bulk or at discount stores
• Repairing and maintaining possessions instead of replacing them
• Avoiding unnecessary luxury purchases

Long-term value focus. Millionaires prioritize spending on items that retain or increase in value over time, such as:

• Quality, durable furniture (often antiques)
• Well-built homes in good neighborhoods
• Education and skill development
• Investments in their own businesses or profitable ventures

5. Millionaires choose homes as long-term investments, not status symbols

"When faced with lack of time, it's better to buy a quality home at a high price than a nonquality home at a reduced price."

Strategic home buying. Millionaires approach home purchases as investments rather than status symbols. They prioritize:

• Location in established neighborhoods with good schools
• Homes with potential for appreciation
• Properties they can afford without overextending themselves
• Patience in finding the right home, even if it takes months or years

Value over flash. The typical millionaire home is:

• Often older (median construction year 1958)
• Moderately sized (4-5 bedrooms, 3-4 bathrooms)
• Well-maintained but not necessarily luxurious
• Purchased at a good price through careful negotiation

6. A supportive spouse is vital for millionaire success

"Having a supportive spouse" was either very important or important in accounting for our economic success.

Partnership matters. The vast majority of millionaires are married, and they credit their spouses as crucial factors in their success. A supportive spouse provides:

• Emotional stability and encouragement
• Shared financial goals and values
• Assistance in managing household and family responsibilities
• A sounding board for important decisions

Qualities of a millionaire's spouse. Millionaires often choose partners who are:

• Honest and responsible
• Frugal and economically productive
• Emotionally supportive and even-tempered
• Intelligent and capable

7. Millionaires develop tenacity through overcoming early setbacks

"Learning to fight for your goals because someone labeled you as having 'average or less' ability."

Adversity breeds success. Many millionaires report facing significant challenges or setbacks early in life, which ultimately contributed to their success. These experiences:

• Developed resilience and determination
• Taught valuable lessons about perseverance
• Motivated them to prove doubters wrong
• Fostered creative problem-solving skills

Education is not destiny. Contrary to popular belief, many millionaires were not top students or from privileged backgrounds. Instead, they:

• Learned from real-world experiences and part-time jobs
• Developed practical skills often overlooked in traditional education
• Found ways to leverage their unique strengths and talents
• Continuously educated themselves in areas relevant to their goals

8. Self-discipline and organization are key millionaire traits

"Being well disciplined" was rated as a very important factor in explaining their economic success.

Discipline drives wealth. Millionaires consistently emphasize the importance of self-discipline in achieving financial success. This manifests as:

• Setting and sticking to financial goals
• Developing and following budgets
• Consistently saving and investing
• Delaying gratification for long-term gains

Organization enhances productivity. Millionaires tend to be highly organized in both their personal and professional lives. This includes:

• Efficient time management
• Systematic approaches to problem-solving
• Careful planning of major purchases and investments
• Regular review and adjustment of financial strategies

9. Most millionaires are self-made, not inheritors of wealth

"Fully 60 percent never received a single dollar of inheritance."

Hard work, not handouts. The majority of millionaires have built their wealth through their own efforts, rather than inheriting it. This challenges the common perception that wealth is primarily passed down through generations. Self-made millionaires typically:

• Start from modest beginnings
• Build businesses or excel in high-paying professions
• Consistently save and invest over many years
• Avoid lifestyle inflation as their wealth grows

Creating, not consuming. Self-made millionaires focus on:

• Developing valuable skills and knowledge
• Creating products or services that solve problems
• Building and growing businesses
• Investing in income-producing assets

10. Millionaires focus on net worth, not just income

"We feel power and control. We know what we're gonna do. We make decisions… . It's a sense of power. You become king within reason."

Wealth vs. income. Millionaires understand the crucial difference between high income and true wealth. They prioritize:

• Building assets that generate passive income
• Minimizing liabilities and debt
• Consistently increasing their net worth over time
• Making financial decisions based on long-term wealth accumulation, not short-term income

Balance sheet focus. Successful millionaires:

• Regularly track their net worth
• Aim for a high net worth to income ratio (often 10:1 or higher)
• Invest in appreciating assets (e.g., businesses, real estate, stocks)
• Avoid depreciating assets and unnecessary expenses that don't contribute to wealth building

Last updated: October 3, 2024