Most would assume that the typical millionaire owes his or her status to a high-paying job or a large inheritance. However, according to data that was collected for the National Study of Millionaires, this is not true. The study, conducted by Ramsey Solutions, shows that anyone can reach the million dollar mark by avoiding unnecessary debt and consistently investing. It is not about family money. It is about hard work and good habits.
Million Dollar Habits
The study shows that the key to saving money is spending less than one earns. That means saying “no” to impulse purchases and always looking for an angle. For example, nearly 75% of millionaires have never carried a credit card balance in their lives. They squeeze their credit cards for points and offers, but they do not pay a dime in interest. Even more, 93% of millionaires use coupons when shopping.
These folks buy into the adage that a penny saved is a penny earned. Every cent that they collect can go toward investing, most commonly through their company 401(k) plan. By investing consistently, they take advantage of dollar-cost averaging, a powerful strategy that minimizes risk.
Millionaires Make Money by Their Own Efforts
These days, many would say that the American Dream is (or always was) a myth. People no longer seem to believe in upward social mobility or even in doing better than their parents did. However, the National Study of Millionaires shows the opposite to be true. Only 1 in 5 U.S. millionaires received an inheritance from family, and just 3% received $1 million or more. That means that 79% of millionaires became so by putting in the effort.
It is a positive message. By forming good habits and sticking to them, any American can climb out of debt and have real options in life.
How Propy Fits the Bill
If the key to wealth is spending less and investing more, then a blockchain-based system like Propy would have to be the millionaire’s choice for effecting real estate transactions. By leveraging DocuSign and smart contract technology, Propy accelerates the purchase process while slashing the fees that usually go to middlemen. It is music to the millionaire’s ears.