If you've ever dreamed of becoming a millionaire, you should know that doing so would put you in the top 2% of the U.S. adult population by wealth, according to recent research from The Ascent. You should also know that becoming a millionaire may be more attainable than you'd think -- just ask the 5.3 million Americans who qualify as millionaires today.
Of course, in some of those cases, it's more than possible that a lot of that wealth was inherited. And even when not, it's likely that some of today's millionaires had help getting to where they are -- perhaps their parents paid for a high-end education and gave them financial support in early adulthood to set them on a solid path.
But there are also plenty of millionaires today who got to that point on their own. They didn't inherit money or have CEO parents to set them up with high-paying jobs from the start. Rather, they made smart personal finance decisions independently that brought them to a good place.
If you're eager to become a millionaire one day, you should understand what it takes to get there. Here are a few habits self-made millionaires tend to uphold.
1. They don't upsize their lifestyles when their income increases
A big reason many reasonably well-off people don't ever reach millionaire status is that they fall victim to lifestyle creep. As their income rises, so too do their expenses. They take on larger mortgage loans, buy fancier cars, and spend freely because they can.
If you want to become a millionaire, don't keep taking on added expenses as your earnings grow. Instead, intentionally live below your means and bank the difference.
2. They're mindful of their spending
Self-made millionaires don't necessarily deny themselves every single one of life's pleasures. There are plenty of people in that boat who take a yearly vacation and enjoy other indulgences.
However, one thing self-made millionaires tend to do is spend their money mindfully. They put thought into larger purchases and make a point to spend their money on things or experiences that truly add value to their lives. They don't just buy things on a whim because they can.
3. They focus on long-term investments
Many people who become millionaires don't reach that point until later in life. That's because they spend many years saving and investing modest amounts that grow nicely over time.
Over the past 50 years, the stock market has rewarded investors with an average annual 10% return. If you were to build a portfolio of stocks generating that same return, a $500 monthly investment over 40 years would get you to over $2.6 million.
4. They believe in hard work
Because self-made millionaires get to that point without financial help, they tend to be people who hustle and aren't afraid of hard work. And if you're willing to make the effort to excel professionally, you, too, might eventually see your pay start to rise. That could, in turn, free up more money to save and invest.
You don't even have to wait to be offered a promotion at work to grow your income. You could take on a second job through the gig economy and boost your income immediately. From there, you'll have more options for investing.
You might assume that you need to be born into wealth to become a millionaire in your lifetime. But that's far from the truth. Many people work their way up from nothing to lots of wealth. And if you're willing to embrace and copy these habits, you may find that you're one day able to call yourself a self-made millionaire.
