Personal Finance
Top 10 Habits of Millionaires for Building Wealth
The Top 10 Habits of Millionaires for Building Wealth
If building large amounts of wealth was easy, then almost anyone could do it.
However, we know that only 6.4% of American adult population are millionaires, and the reality is that not all of those are self-made.
What habits and practices helped this elite group in accumulating large amounts of wealth, and how can we apply these to our own careers to become more financially independent?
Copying the Habits of Millionaires
Today’s infographic from StocksToTrade.com skips the silver bullets and “get rich quick” tricks to show the real habits of millionaires that have led to wealth accumulation over time.
Many of these habits are not particularly glamorous, but remain essential for the long-term success of entrepreneurs and investors. They tend to fall in categories such as: hard work, persistence, passion, acquiring self-knowledge, associating with the right people, and staying healthy.
Here are the most important statistics to consider:
- 88% of the rich devote 30 minutes or more each day to self-education or self-improvement.
- 76% of the rich aerobically exercise for 30 minutes or more, every day.
- 86% of the rich who liked what they did for work made $3.4 million in 32 years
- 7% who loved what they did made $7.4 million in 12 years.
- 92% of rich say good luck had nothing at all to do with their wealth. They just never gave up.
- 88% of millionaires believe relationships are critical to financial success.
- 94% of wealthy individuals read current events every day.
- 88% of the rich people say that saving money was incredibly important to their success.
- 93% of the self-made millionaires attributed their wealth to their mentors’ help.
- 86% of wealthy, successful people associate with other success-minded people.
- 79% of the rich read educational, career-related material.
In other words, it’s not a simple idea or plain old luck that leads to success.
The stats above show it is the daily habits and practices that count in the long run.
Personal Finance
Ranked: What People Value Most in a Financial Advisor
Positive reviews and recommendations are some of the least important factors—so what do people look for in a financial advisor?
Ranked: What People Value Most in a Financial Advisor
Are advisors putting their focus where it matters? You might think that positive reviews and recommendations would be a top consideration for people choosing a financial advisor. However, other qualities appear to be much more important.
This graphic uses data from Morningstar’s Voice of the Advisor report to outline what people value most in a financial advisor.
The Qualities Investors Value
Morningstar surveyed 400 people: 100 Caucasian women, 150 women of color, and 150 men of color. The values below show how often people chose an item as most or least important when working with an advisor.
Quality | Most Important | Least Important |
---|---|---|
Expertise and knowledge in financial planning and investments | 60% | 11% |
Personalized financial advice that meets my specific goals and needs | 54% | 16% |
Ability to understand my risk tolerance and appropriately align my investments | 47% | 17% |
Specialization in specific financial situations, such as retirement planning | 45% | 17% |
Ability to communicate complex financial concepts in an understandable way | 42% | 22% |
Transparent fee structure and pricing for my advisor’s services | 42% | 22% |
Trust and rapport established during the initial meetings with my advisor | 36% | 24% |
Ability to incorporate investment options that reflect my values | 22% | 41% |
Positive online reviews or ratings about my advisor’s services | 22% | 46% |
Recommendations from friends or family who had a positive experience with my advisor | 20% | 47% |
Commitment to diversity and inclusion, making me feel comfortable and respected | 20% | 47% |
Recommendations from other professionals, such as accountants or attorneys | 19% | 50% |
Shares a similar background or cultural understanding | 10% | 68% |
Participants were asked the following question: “On each screen, we will show you 3 items to think about when working with a financial advisor. Select which one is most important and which one is the least important of the items. You will see more than one screen and items may appear more than once.”
Enjoying this content? Dive into more insights in the Voice of the Advisor Report:
Even among a survey pool that was mostly people of color, the majority of respondents didn’t think a commitment to diversity or a shared background were important.
Instead, three of the top four factors were related to personalization.
Personalization: A Key Quality in a Financial Advisor
People cared deeply about personalization regardless of gender and race. It was even more important to those with more than $250,000 in assets, suggesting that personalization may become more critical as a person’s portfolio value increases.
Even investors not currently working with an advisor and non-investors noted that personalization would be a top quality they would look for in a financial advisor.
Within personalization, people noted risk management was a very important element. Financial advisors can highlight their ability to tailor financial plans based on each person’s risk tolerance in order to attract clients.
Looking for tips on how to grow your advisory business? Get insights on what investors want, and how other advisors are evolving, in Morningstar’s Voice of the Advisor report.
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